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Commerzbank: Gold Falls Back Below 100-Day Average

Kitco News

Gold has dipped back below the 100-day moving average, which is currently just shy of $1,220 per troy ounce, says Commerzbank. As of 9:35 a.m. EDT, spot gold was $8.90 lower to $1,213.70 an ounce. “A firmer U.S. dollar and a noticeable recovery on the global stock markets are weighing on its price,” Commerzbank says. “Thus the technical picture has also become somewhat more gloomy again, which could make short-term-oriented investors more reluctant to bet on a rising gold price.” Time will tell whether speculators will make new attempts to establish bearish positions in gold, considering that they were “were caught wrong-footed” doing so a while back when prices suddenly surged higher, Commerzbank says. Analysts note that gold exchange-traded funds registered inflows in the past three weeks just shy of 40 tonnes, based on Bloomberg data.

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

 

BBH: Gold Softer; Risk-Off Sentiment ‘Ebbing’

Wednesday October 31, 2018 09:25

So-called risk sentiment is improving again, in part reflected by a fall in gold prices, says Brown Brothers Harriman. “Global equity markets are rallying today, taking their cue from the strong U.S. performance yesterday,” BBH says. “U.S. Treasury yields are rising whilst gold is falling, suggesting risk-off sentiment is ebbing.  The dollar continues to build on its recent gains, with the dollar index trading at a new high for the year just above 97.  The May 2017 high near 100 is the next big target, with an intermediate target seen near 98.” As of 9:21 a.m. EDT, the spot dollar index was up 0.142 point to 97.153. Comex December gold was down $9 to $1,216.30 an ounce. Shortly after this, equities opened higher on Wall Street.

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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