FXTM: Gold Bulls Lose Battle, But War Still Rages On
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Gold is on the defensive but the fight isn’t over, says Lukman Otunuga, research analyst at FXTM. Spot metal was trading down $8.35 to $1,304.70 as of 8:49 a.m. EST and hit a two-week low of $1,304.55. “With risk appetite coming back to the fore, gold bulls lost their iron grip this week…,” Otunuga says. “Gold’s recent performance indicates that markets are pricing in the increased likelihood of a U.S.-China trade deal happening sooner rather than later. With U.K. Prime Minister Theresa May also opening up the possibility of an extension to Article 50, investors are hopeful that the much-feared no-deal Brexit will be avoided, ultimately supporting risk appetite.” Still, the end result of these issues is still uncertain, Otunuga says. “Concrete and positive resolutions may result in a surge in demand for riskier assets and conversely be negative for gold. It should also be kept in mind that gold bulls remain inspired by geopolitical risk factors and speculation over the Fed taking a break on monetary tightening this year.”
By Allen Sykora of Kitco News; firstname.lastname@example.org
Commerzbank: Gold Prices On Defensive
Friday March 1, 2019 09:15
Gold prices are threatening to fall below the medium-term upward trend that has continued since November, says Commerzbank. As of 8:46 a.m. EST, spot metal was $8.70 lower to $1,304.35 an ounce. “Better sentiment on the stock markets and a reluctance by the physical gold investors are weighing on its price,” Commerzbank ays. “Holdings in gold ETFs [exchange-traded funds] have been declining since the end of January, and key consumers from China and India are likewise exercising restraint at present.”