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MKS Cites 'Robust' Physical Demand For Gold In Asian Trading

Kitco News

Gold is attracting “robust” physical buying in Asia, helping prices bounce modestly overnight, says MKS (Switzerland) S.A. As of 7:38 a.m. EDT, spot metal was $2.55 higher to $1,176.45 an ounce. “Gold saw relatively muted price action during Asian trade today, finding respite amid a weaker greenback to hold support around $1,172, with Asian physical demand continuing to remain robust,” MKS says. “Early-session offers, much the same as on Thursday, saw the yellow metal initially lower in Tokyo, breaking underneath the New York closing level to touch a $1,172 session low. The weakness was however short-lived as the metal attracted bids toward the support level, sharply reversing declines into the Shanghai open to test a break toward $1,180. Interest out of China saw the on-shore premium hold around $5 to keep bullion buoyant above $1,175, while the greenback tracked sideways after early-session weakness to underpin pricing above $1,175 leading into European hours.” By Allen Sykora of Kitco News; FXTM: Gold Headed For Biggest Weekly Loss In A Year Friday August 17, 2018 07:52 Despite a modest uptick early Friday, gold prices were on track for their largest weekly decline since mid-2017, says Lukman Otunuga, research analyst at FXTM. “It is becoming increasingly clear that the yellow metal has struggled to maintain its safe-haven allure, with investors rushing to the dollar instead in these times of uncertainty,” Otunuga says. “With the greenback heavily supported by U.S. rate-hike expectations and safe-haven demand, gold is likely to witness further losses moving forward.” Gold’s technical-chart picture remains bearish, the analyst continues. “A breakdown below $1,171 could invite a decline back towards $1,160. A technical rebound back towards the psychological $1,200 remains a possibility if bulls are able to push prices back above $1,180.”
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