Make Kitco Your Homepage

FXTM: Gold Bulls Lose Battle, But War Still Rages On

Kitco News

Editor's Note: Kitco News has the best precious metals coverage in the world and is in the process of improving its mining news, so we want to hear from you. If you work in the mining sector please take this short survey to help us bring you the news you want.

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;


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.”

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.