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RBC's Gero: Gold Modestly Softer While Awaiting Fed

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Gold is modestly softer as equities tick higher, with an ADP report on hiring in the U.S. private sector also holding back the precious metals, says George Gero, managing director with RBC Wealth Management. Markets are awaiting the outcome of a two-day meeting of the Federal Open Market Committee. As of 9:23 a.m. EDT, Comex June gold was $2.40 softer at $1,283.30 an ounce. The S&P 500 was around 5 points higher in early trading, while the Nasdaq was up nearly 40 points. The number of open positions in gold futures shows a lack of sustained new buying as “nimble traders” continue to sell rallies and buy dips while awaiting political and economic news, Gero says. “Good ADP numbers today -- up 275,000 – [are] good news for economy [but] not so good for gold…,” Gero says.

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

 

TD Securities: Gold, Silver ‘Trendless’ While Awaiting FOMC

Wednesday May 1, 2019 09:39

Gold and silver are “trendless” markets for now while awaiting the outcome of a meeting of the U.S. Federal Open Market Committee, says TD Securities. “Today's FOMC meeting will be key for the precious-metal bears, which have certainly taken note of the broader market's growing hopes that the Fed will cut rates before this year's end,” TDS says. “With the market's implied probability of a cut in 2019 growing to nearly 66%, it may not take much for the bulls to be forced to liquidate their length into this meeting. We suspect that the current rally in gold will need to be substantiated with weakening U.S. data before the yellow metal can take a run at higher prices.” For now, however, momentum signals suggest a “trendless market” in both gold and silver, TDS says. 

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