Make Kitco Your Homepage

FXTM: Dollar Flexes Muscles, Pushes Gold Lower

Kitco News

Gold softened early Friday as a stronger U.S. dollar continues to influence price direction for the yellow metal, says Lukman Otunuga, research analyst at FXTM. As of 8:45 a.m. EST, spot gold was down by $7.35 to $1,234.40 an ounce. The dollar index was up 0.628 point to 97.688. “With appetite for the dollar receiving a solid boost today on trade jitters and soft China economic data, this will certainly punish gold,” Otunuga says. “Although the risk-off mood may attract some investors towards the precious metal, an appreciating dollar is likely to sabotage any attempt for a rebound.” Based on the daily technical charts, gold bulls “lost control” after prices broke below the $1,240 support level, the analyst continues. “Sustained weakness under this level could inspire bears to target $1,234,” Otunuga concludes.

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

 

SP Angel: Gold May Peak At $1,375 In 2019

Friday December 14, 2018 09:00

Commodities brokerage SP Angel expects 2019 to be a good year for gold. The U.S. Federal Reserve may be limited to one or two more rate hikes next year, analysts say. Meanwhile, tax cuts and wage growth may raise U.S. inflation, alongside tariff issues. “Gold could easily move $100/oz higher, peaking at $1,375/oz, with investors seen buying price dips to give the metal…an expected base of around $1,208/oz,” SP Angel says.  Central banks may continue raising their holdings in the face of currency volatility and likely weakness in a range of other currencies, SP Angel continues.  Analysts describe U.S. President Donald Trump as “no stranger to debt” and say he is likely to continue borrowing to fund tax cuts and other plans. “Problem is that Trump does not control the House of Representatives, and they are likely to restrict the U.S. government deficit, bringing the cliff closer and causing political chaos,” SP Angel says.

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

 

Commerzbank: Brexit Uncertainty Supportive For Gold

Friday December 14, 2018 09:00

Uncertainty surrounding the U.K.’s exit from the European Union – dubbed Brexit – should mean “solid demand” for gold,” says Commerzbank. “Yesterday’s meeting of the European Council showed that the U.K. government has no plan and that the rest of Europe is unwilling to make any concessions,” Commerzbank says. “This entrenched situation increases the risk of a disorderly Brexit.” 

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.