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TDS: Gold Not Far From 200-Day Moving Average

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Some key technical-chart levels near or just below current gold prices, points out TD Securities. “The key level to watch in gold is $1,271/oz, while the 200dma [200-day moving average] is not far off at $1,266/oz, which would open up substantial downside if these levels do not hold,” TDS says. As of 9:12 a.m. EDT, spot metal was trading down $1.40 to $1,270.80 an ounce. “The melt-up in equities amid strong earnings from the likes of Twitter and Snap, along with the DXY [U.S. dollar index] looking to break out above recent highs of 97.7 do not lend a helping hand to the precious metals market, but price action in the bond market seems to contradict this narrative and could lend support to the shiny metals moving forward,” TDS adds.

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

 

SP Angel: India’s Central Bank Adding Gold To Reserves

Wednesday April 24, 2019 09:17

India’s central bank may be a notable gold buyer in 2019, says commodities brokerage SP Angel. The bank has joined its counterparts in Russia and China by adding the metal to its holdings. “The Reserve Bank of India’s purchases are part of a wider picture across developing economies that are looking at de-dollarizing their foreign-exchange reserves,” SP Angel says. “The RBI could look to add 1.5Moz [1.5 million ounces] in 2019, equivalent to 46.7t [tonnes], according to economist forecasts. This follows purchases last year of 42t, with additions in January and February driving the nation’s gold reserves to a record high of almost 609t, according to the International Monetary Fund.” Global central banks last year added 651.5 tonnes to their holdings, the second-highest total on record, according to the World Gold Council.

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

 

Commerzbank: ETF Gold Holdings Continue To Decline

Wednesday April 24, 2019 09:17

Holdings of gold by exchange-traded funds, which rose early in 2019 but have been declining for weeks now, are back to roughly where they began the year, says Commerzbank. The precious metal was hurt Tuesday by a muscular U.S. dollar and equity market. “In the wake of better-than-expected company [earnings] reports, U.S. stock indices later made significant gains, with the result that gold was not in demand as an alternative investment,” Commerzbank says. “This was also reflected in ETF outflows of 4.7 tonnes. Holdings in the gold ETFs tracked by Bloomberg have thus nearly fallen back to the level at which they began the year.”

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

 

INTL FCStone: Precious Metals Flat; Declines Could Resume

Wednesday April 24, 2019 09:17

Most precious metals are flat in early trade but there is the risk of resumed selling pressure, says INTL FCStone. Meanwhile, the dollar index remains strong. “There's very little going on in the precious metals space; the group was under considerable pressure yesterday apart from palladium which staged a modest bounce,” INTL FCStone says. “We are currently flat across the board in the group, but suspect that the selling could resume in relatively short order as there does not seem to be much in terms of any upside impetus.” Meanwhile, the firm says, the U.S. dollar index has been “strong pretty much all week” and is higher again early Wednesday. The euro hit a one-month low on slightly weaker-than-expected German sentiment readings, with the latest IFO survey showing that the business-climate index fell to 99.2 from an upwardly revised 99.7 in the previous month.

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