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BMO: 'We Expect Portfolio Allocation Towards Gold'

Kitco News

BMO Capital Markets looks for investors to include some gold in their portfolios during the remainder of 2018. Analysts note that holdings in global gold exchange-traded funds, which trade like a stock but track the price of the commodity, have risen to a three-month high following recent weakness in equity markets. “With macroeconomic risk now being supplemented by concerns over systemic financial risk, we expect portfolio allocation towards gold to edge higher towards year end,” BMO says.

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

 

RBC’s Gero: Gold Gets Short-Covering Lift After Soft Data

Wednesday November 21, 2018 09:03

Gold is getting a lift as traders buy to offset short, or bearish, positions ahead of the U.S. Thanksgiving holiday and after soft U.S. economic data, says George Gero, managing director with RBC Wealth Management. As of 8:47 a.m. EST, Comex December gold was $5.40 higher to $1,226.60 an ounce. The metal was stronger overnight and got an added lift when the government reported that durable-goods orders fell 4.4% last month and U.S. initial jobless claims rose by 3,000. This and the holiday mean “shorts are covering,” Gero says.

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

 

BBH: Dollar Backs Off As Equities Stabilize

Wednesday November 21, 2018 09:03

The U.S. dollar has given back some of its recent gains, consolidating after the pause in the global equity sell-off, says Brown Brothers Harriman. The dollar rose Tuesday as U.S. stocks sold off sharply. “Wave after wave of risk-off sentiment had given a bid to the greenback, and we fully expect another wave to hit markets,” BBH says. “In the meantime, the euro feels heavy and is having trouble moving back above $1.14. The same can be said for sterling and the $1.28 area.  Both currencies are being weighed down by heightened political risk.  The easing of risk-off sentiment today has helped USD/JPY recover back above 113.” As of 8:49 a.m. EST, the December dollar index was down 0.266 point to 96.450, with futures for the Dow Jones Industrial Average and S&P 500 both pointing to higher opens when Wall Street opens.

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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