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Price Group's Flynn: Geopolitical Turmoil, Shaky Stocks To Support Gold

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Phil Flynn, senior market analyst with at Price Futures Group, looks for gold to build on its recent gains over the next week. “Geopolitical turmoil and shaky global stock markets will keep gold shiny,” he says. “The murder mystery in Saudi Arabia, as well as EU [European Union] concerns over Italy’s budget, will keep gold buying strong.” By “murder mystery,” Flynn was referring to growing tensions between the U.S. and Saudi Arabia after news reports that journalist Jamal Khashoggi disappeared after going into the Saudi consulate in Istanbul on Oct. 2. As of 8:41 a.m. EDT, Comex December gold was $3 higher to $1,233.10 an ounce.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Commerzbank: Gold ‘Finding Support From Increased Risk Aversion’

Friday October 19, 2018 08:57

Gold has drawn support as investors shy away from so-called risk assets, with the metal showing signs of maintaining a break above the 100-day moving average, which in turn could prompt more buying, says Commerzbank. “If it succeeds, technical follow-up buying should push the gold price further up,” the bank says. “At the same time, gold is resisting the firm U.S. dollar. It is finding support from increased risk aversion among market participants, as reflected in falling stock markets, and from additional ETF [exchange-traded-fund] inflows.” As of an early-morning research note, gold in euro terms was trading at a three-month high near €1,070 per troy ounce. “The conflict between Italy and the EU [European Union] over the Italian draft budget for 2019 is escalating,” Commerzbank says. “The question is already being raised of how sustainable Italian debts are, especially if yields continue to climb. The yield spread between 10-year Italian and German government bonds surged to nearly 330 basis points yesterday. Concerns that the euro-zone crisis could flare up again should support demand for gold as a safe haven.”

By Allen Sykora of Kitco News; asykora@kitco.com

 

SP Angel: Gold Headed For Third Straight Up Week

Friday October 19, 2018 08:57

Gold is heading for a third straight week of gains, which would be the longest since January, amid renewed interest in the precious metal as a safe haven, says commodities brokerage SP Angel. “Volatility in equity markets and tensions in the Middle East have spurred demand for bullion, with holdings in exchange-traded funds backed by the metal expanding to the highest level in more six weeks,” SP Angel continues. “Concerns about the economy were further fueled by a JP Morgan Chase model indicating that the chance of the U.S. tipping into a recession in the next two years is now greater than 60%.”  SP Angel cites Bloomberg data showing that exchange-traded-fund holdings of gold rose to 2,113.5 tonnes on Thursday, the highest since Sept. 3. As of 8:37 a.m. EDT, spot gold was $3.50 higher to $1,229.30 an ounce.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Commerzbank: Swiss Gold Exports To India Decline

Friday October 19, 2018 08:57

Swiss gold exports to India declined sharply last month, with demand apparently hurt by high gold prices in lndian rupees, says Commerzbank. Analysts cite Swiss customs data showing that the country exported only 16.5 tonnes of gold to India in September, which was nearly 60% less than in August. “The sharp rise in the gold price in Indian rupees is likely to have played its part in this,” Commerzbank says. “It has been picking up ever since mid-August as the currency has depreciated, and recently reached its highest level in over two years. The All India Gems & Jewelry Trade Federation therefore envisages very weak gold demand around this year’s Hindu festivals of Dhanteras and Diwali, which will be taking place in early November.”

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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