MKS' Nabavi: Longs Tiptoe Back Into Gold Market After Holiday
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Gold has ticked modestly higher at the start of the week as some traders re-establish bullish positions after a long Easter weekend, with the market quiet overall as London remains on holiday, says Afshin Nabavi, head of trading at trading house MKS SA. As of 8:30 a.m. EDT, spot metal was $1.80 higher to $1,277.30 an ounce. Some traders liquidated positions ahead of the long Easter weekend, Nabavi says. “Maybe people are putting their trades back on the books,” he says. He also reports some physical demand emerged in Far East trading hours.
By Allen Sykora of Kitco News; firstname.lastname@example.org
Analysts: Markets Await U.S. GDP; Economy Recovering
Monday April 22, 2019 08:35
The key U.S. economic report this week will be gross domestic product due out Friday, say Brown Brothers Harriman and Bannockburn Global Forex. “It looked dismal at the start of the quarter with the shock from the Q4 equity meltdown, the government shutdown, and the bitterly cold weather,” says Marc Chandler, chief market strategist with Bannockburn Global Forex. “However, the economy gradually found better traction, and most expect growth to be above what the Fed regards as the long-term average (~1.8%).” BBH says economic data last week showed that the U.S. economy “recovered smartly from the soft patch” early in the first quarter. “The labor market remains strong, as evidenced by another 50-year low in weekly initial jobless claims,” BBH says. “That strength in turn has translated into robust consumption.” Consensus expectations for first-quarter GDP are 2.2% seasonally adjusted annual growth, BBH says. “For the last three years and in four of the past five, Q1 growth has been the slowest of the quarters,” BBH says. “Let’s see if that holds this year too.” Other U.S. reports during the week include sales of existing homes on Monday, new homes on Tuesday, durable goods and weekly jobless claims Thursday.