Make Kitco Your Homepage

TDS: Gold Positioning For $1,320s Sooner Than Anticipated

Kitco News

Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!

TD Securities says gold may be positioning for a move toward the low $1,320-an-ounce area sooner than anticipated and says it still looks for $1,360 in three months and $1,400 in 2020. “Ample risk appetite and a firm USD [U.S. dollar] prompted specs to aggressively cut their net exposure last week,” TDS says. “As such, with the USD range-bound, equities showing less strength and the with the market firmly believing anticipating that the upcoming FOMC [Federal Open Market Committee] minutes will cite chatter surrounding rate cuts, which would confirm Fed dovishness, the yellow metal has more upside. With President Trump's two very politically politically-motivated appointees being have been proposed for the Fed's two vacant spots seats, there sparking is concern the U.S. central bank may increasingly be getting politicized.” Meanwhile, analysts cited news that China’s central bank bought gold for the fourth consecutive month in March as yet another factor that could help lift prices. “We would not be surprised to see the yellow metal move toward the low $1,320/oz range in the not-too-distant future,” TDS says. “We suspect that there is the potential for aggressive CTA [Commodity Trading Adviser] buying at with prices level north of $1,290/oz, which could help support see a sharp rally given recent long liquidations and increases in short positioning. Longer term, we continue to be comfortable with our long gold trade which we entered when the yellow metal was $1,298/oz, with a three-month target of $1,360/oz, before a move toward $1,400/oz next year.”

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

 

RBC's Gero: Gold Upticks As Dollar, Equities Retreat

Tuesday April 9, 2019 09:18

Gold’s rally is continuing as the U.S. dollar sags and stocks retreat as the European Union makes plans to counter U.S. tariff threats, says says George Gero, managing director with RBC Wealth Management. He adds that gold longs were also encouraged that China’s central bank added more metal to its holdings in March. As of  a.m. EDT, Comex June gold was $ higher to $  an ounce. Shortly before 9 a.m. EDT,   the Dow Jones Industrial Average futures were 62 points lower. The June dollar index was 0.160 point lower to 96.490. Comex June gold was $7.90 higher to $1,309.80 an ounce.

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

Commerzbank: EU-U.S. Trade Issues Support Gold

Tuesday April 9, 2019 09:18

The threat of further global trade tensions is supporting gold, says Commerzbank. As of 8:49 a.m. EDT, spot metal was $7 higher to $1,304.10 an ounce. “This morning it is finding support from U.S. President Trump’s threat to introduce new punitive tariffs on various products from the EU [European Union],” Commerzbank says. Specifically, analysts were referring to U.S. plans to tackle what it views as the EU’s illegal subsidies in the aviation industry. “In our opinion, this also increases the probability of U.S. tariffs being imposed on car and car part imports,” TDS says. “Trump has until mid-May to decide whether to impose such tariffs, which would presumably prompt the EU to take retaliatory measures.”

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.