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RJO's Pavilonis: Gold Retreats On Technical-Chart Factors

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The pullback in gold futures so far Thursday is largely based on the technical charts rather than any fresh news, says Daniel Pavilonis, senior commodities broker with RJ Futures. As of 9:16 a.m. EDT, Comex June gold was $14.80 lower to $1,299.10 an ounce. Some selling set in when the market wasn’t able to push through resistance in the $1,315 area on Wednesday, he says. The market had posted good gains lately, so “there was some profit-taking,” Pavilonis says, adding that sell stops may have booted some traders out of positions as well. “I think this is purely technical.”

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

 

RBC’s Gero: Some Gold Traders Taking Money Off Of Table

Thursday April 11, 2019 09:30

Gold is pulling back as “traders take some [money] off the table, says George Gero, managing director with RBC Wealth Management. He adds that the concerns about the global economy removed some of the immediate inflation concerns. Gero notes that with gold still range-bound, the $1,275 to $1,325 area is “becoming a trading vehicle for many who sell the upper range and buy the lower range.” As of  9:14 a.m. EDT, Comex June gold was $14.70 lower to $1,299.20 an ounce.

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

 

TD Securities: Diversification Away From Risk Assets To Help Gold

Thursday April 11, 2019 09:30

Worries about how long the equity-market rally will last should help put a floor under gold, says TD Securities. “We estimate that CTAs [Commodity Trading Advisers] are still building a substantial position in gold, despite a relatively low bar for the algorithmic trend followers to abandon ship, which is keeping whipsaw risk elevated,” TDS says. “However, a growing chorus of market observers is arguing for diversifying away from equity-market risk, following the last three months' monumental rally, which suggests additional interest in gold should keep the yellow metal's prices above the high-water mark.” 

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