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RBC's Gero: Gold Gets Slight Lift From Dollar, Stocks

Kitco News

Comex gold is modestly higher as the U.S. dollar and stock-index futures ease, says George Gero, managing director with RBC Wealth Management. He adds that the gold price is “still a barometer of the world’s well being economically and politically.” As of 8:35 a.m. EST, April gold was $1.50 higher to $1,305.70 an ounce. The euro climbed to a 10-day high against the U.S. dollar overnight, while the futures contract for the Dow Jones Industrial Average is around 200 points lower in early screen trading. “Gold, sensitive to all economic [and] political headlines, has ample reasons to do well but will have headline fluctuations on way to higher prices,” Gero says.

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

 

Commerzbank: Fed Meeting, Jobs Impact Could Be Mixed For Gold

Monday January 28, 2019 08:27

Gold may well benefit if the Federal Reserve does not hike interest rates this week but then could be hurt if the monthly jobs report is strong, says Commerzbank. A number of news events could impact markets this week, including another U.K. Parliament vote on the Brexit deal with the European Union, the bank says. “As the current version presented by Prime Minister Theresa May hardly differs from the previous one, it is highly likely that the deal will be rejected again,” Commerzbank says. “We believe that the U.S. Fed will not raise interest rates any further on Wednesday because economic concerns have increased. Though this should have a positive impact on gold, the publication of a robust labor market report in the U.S. could have a dampening effect again on Friday.”

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

 

BBH: ‘Shutdown’s Impact On The Jobs Data Should Be Limited’

Monday January 28, 2019 08:27

The U.S. government shutdown, which has ended at least temporarily with the two parties giving themselves until Feb. 15 to reach an agreement on border security, should not affect this week’s report on nonfarm payrolls, says Brown Brothers Harriman. Analysts say there will be some effect on the economy. While federal workers will get back pay, government contracts impacted by the shutdown won’t. Initial jobless claims data hint at a “solid” payrolls figure, BBH says, reporting that consensus expectations are for a gain of 165,000 nonfarm jobs. “According to guidance from the BLS [Bureau of Labor Statistics], federal employees who are furloughed will be counted as employed,” BBH says. “Furthermore, those who are working but not receiving pay will also be counted as employed.  Bottom line:  the shutdown’s impact on the jobs data should be limited.”

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