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FXTM: Gold's Next Move May Depend On U.S.-China Trade Talks

Kitco News

Gold’s next move may hinge on the outcome of trade talks between the leaders of the U.S. and China during the weekend Group of 20 summit, says Lukman Otunuga, research analyst at FXTM. “A positive outcome to trade talks is seen weakening the dollar amid improved risk sentiment, consequently offering gold prices some support,” the analyst says. “Although gold may also find support if negotiations prove unsuccessful, the gains are likely to be limited by the dollar, which remains a go-to currency in times of uncertainty.” Technically oriented traders will be watching to see how gold behaves around $1,228 chart resistance, Otunuga says. “A failure for prices to break above this point is poised to result in a move back towards $1,218.”

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

 

MKS: Palladium Remains Hot; Platinum Not

Friday November 30, 2018 08:08

Palladium remains strong while sister metal platinum remains on the defensive, says MKS (Switzerland) S.A. Spot palladium, for which most analysts say a supply deficit is occurring, hit a record of $1,193.85 an ounce. Platinum, which is considered to be in a supply-surplus situation, hit a two-month low of $805.80. Palladium’s continued rally came with “forwards tightening further on physical supply-driven constraints,” MKS says. “Platinum, however, struggles to find support in lieu of dollar weakness, seemingly only benefiting from contagion should the remainder of the precious find favor. The metal is eyeing a test of $800 over the near term, having last breached the figure in mid-September following a minus 9% decline to $755 during August.” 

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

 

SP Angel: Gold On Pace For Back-To-Back Monthly Gains

Friday November 30, 2018 08:08

Gold is on track for its first back-to-back monthly gains since January, says commodity brokerage SP Angel. Analysts say the metal has been helped by continued increases in exchange-traded-product holdings of the metal and speculation of a pause in Federal Reserve rate hikes next year. “Changing sentiment comes as [Fed] Chairman Jerome Powell’s comments this week reinforced the sense the central bank may be approaching a hiatus in raising borrowing rates, as the current level sits ‘just below’ estimates of the so-called neutral level,” SP Angel says. “Minutes released yesterday from its last meeting signaled policymakers will adopt a more flexible approach after the expected December hike.” As of 7:48 a.m. EST, spot gold was $8.05 higher for the month so far to $1,222.45 an ounce.

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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