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Commerzbank: China Relying On Imports To Meet Gold Demand

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China appears to be relying on gold imports to meet the country’s demand for the precious metal, says Commerzbank. Analysts cite data from the China Gold Association, as reported by the Chinese news agency Xinhua, showing that that China produced just shy of 93 tonnes of gold in the first quarter, which was 5.5% less than in the same period last year. However, Chinese gold demand increased slightly to 287 tonnes year-on-year. “China is using imports to plug the gap,” Commerzbank says.

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

 

Analysts: Gold Moves Higher; Dollar Eases On Profit-Taking

Friday April 26, 2019 09:00

Gold is up with the U.S. dollar index down, analysts say. The precious metal often moves inversely to the U.S. currency. As of 8:45 a.m. EDT, the June dollar index was down 0.119 point to 97.795. Meanwhile, spot gold was up $5.30 to $1,282 an ounce. “In the precious-metals group, the weaker dollar is giving the complex a bit of a boost today,” says INTL FCStone. Brown Brothers Harriman says some market participants are selling the dollar to book profits ahead of the weekend. The dollar index rose three straight days and made a new cycle high Thursday before softening Friday, BBH says. “The euro has been unable to extend yesterday’s move lower and is stabilizing, though it feels heavy,” BBH says. “We believe the dollar rally will continue next week, though there will likely be some corrective days here and there.”

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

 

BBH: FOMC Not Likely To Increase Dovish Tone

Friday April 26, 2019 09:00

Brown Brothers Harriman doubts that the Federal Open Market Committee will become any more dovish when policymakers meet next week. “Next week brings the FOMC meeting,” BBH says. “While it is likely to adhere to its mantra of ‘patience’ and ‘flexibility,’ we do not believe anything that’s newly dovish will emerge.  If anything, the Fed may sound more upbeat on the economy given that it has bounced back nicely from the soft spot at the beginning of the year.” Policymakers turned more dovish at recent meetings after a previous series of rate hikes. 

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

 

TD Securities: Investors May Be Seeking Gold For Diversification

Friday April 26, 2019 09:00

Gold’s ability to stem a recent slide, despite a still strong stock market, may be a sign that more investors are including the precious metal in their portfolio for diversification, says TD Securities. “Gold prices have regained their front footing despite the ‘melt-up’ in equities which has since been substantiated by substantial beats in earnings from the tech behemoths,” TDS says. “Given the recent weakness in interest rates, price action in the yellow metal highlights that appetite for portfolio diversification could be on the rise. For the moment, however, the recent lack of trend is keeping CTA [Commodity Trading Adviser] activity muted for the time being.”

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