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Standard Chartered: Gold Struggling to Regain $1,300/Oz

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Gold is struggling to regain $1,300 an ounce ahead of the next meeting of the Federal Open Market Committee, says Standard Chartered. Spot metal slid from $1,346.45 an ounce on Feb. 20 to a low of $1,280 on March 5, then retested $1,300 again Friday following the weaker-than-expected U.S. employment report. “However, investors had been turning less positive on gold before then,” Standard Chartered says. “Net fund length [among futures speculators] fell by the largest weekly decline in positioning since May 2018 during the week ended 5 March, predominantly driven by long liquidation.” Exchange-traded-product redemptions accelerated in March, declining 27 tonnes in the month so far after a 30-tonne decline in February, the bank continues. “Investors started to lose confidence in the rally, suggesting that the market is not yet ready to test last year’s intra-year highs,” Standard Chartered says. “Despite the slowdown in central-bank buying and investor outflows, prices have held up well and we continue to believe that the downside for gold prices is well supported.” As of 10:28 a.m. EST, spot metal was $4.50 higher at $1,297.50 an ounce.

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

 

Walsh’s Lusk: Gold Holds Support, Just Below Near-Term Resistance

Tuesday March 12, 2019 10:38

Comex gold has bounced from chart support, but now needs to poke back above resistance at last week’s high to further encourage the bulls, says Sean Lusk, director of commercial hedging with Walsh Trading. The April contract nearly touched $1,350 an ounce in February but subsequently slid to four daily lows between $1,280.80 and $1,284.70 last week. This was around chart support, Lusk says. “Selling stopped there and more buyers came back in,” he says. Prices then bounced as high as $1,301.30 on Friday following weaker-than-forecast U.S. nonfarm payrolls. “You need to take out last week’s highs just above where we’re trading currently,” Lusk continues. He says gold is “getting pulled in both directions” at the moment. However, no Federal Reserve rate hikes appear to be on the near-term horizon, Lusk continues, so “the direction of least resistance is higher.”  

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

 

Standard Chartered: Central-Bank Gold Buying Slows

Tuesday March 12, 2019 10:38

Central-bank gold buying continues but at a slower pace, says Standard Chartered.  Central banks bought 651.5 tonnes of gold last year, more than in half a century, according to the World Gold Council. However, says Standard Chartered, this buying has let up in early 2019. Analysts note that Russia reported buying of 6.2 tonnes in January, its lowest monthly purchase since December 2006 and less than one-third of its monthly average buying of 23 tonnes in 2018. Kazakhstan’s January purchase fell to 2.8 tonnes from 5 tonnes in December and a monthly average of 4 tonnes in 2018. “However, Colombia reported purchases of 5.4t in January, having last added to reserves in February 2018 at a more modest pace of just over 1t,” Standard Chartered says. “We expect buying to remain intact this year.”

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