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LaSalle's Nedoss: Gold Holds 200-Day Avg., May Test 20-Day

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Comex August gold has been holding support around the 200-day moving average of $1,278.10 an ounce and may be poised for a run higher, said Charlie Nedoss, senior market strategist with LaSalle Futures Group. The financial markets are starting to factor in a chance of a 25-basis-point rate cut later in the year. Meanwhile, the U.S. dollar is showing signs of forming a top, Nedoss said. “At some point…, we will make a run back at the 20-day [average],” he said. This is around $1,289.50 an ounce. Should the market poke above this, fresh buying would be encouraged, he continued. As of 9:19 a.m. EDT, August gold was 30 cents softer at $1,286 an ounce.

By Allen Sykora of Kitco News;


MKS’ Nabavi: Range-Bound Gold Held Back By Strong U.S. Dollar

Thursday May 30, 2019 09:10

Gold remains range-bound, unable to advance despite various geopolitical tensions, held down by a strong U.S. dollar, says Afshin Nabavi, head of trading with MKS. As of 9:04 a.m. EDT, spot metal was $1.90 stronger at $1,281.20 an ounce. “There are some good sellers above the market,” Nabavi said. “The dollar also continues to be strong.” The spot dollar index was up 0.007 point to 98.151 and peaked at 98.236, its strongest level in a week. Nabavi put the range for gold at $1,275 to $1,285. “We’ve been here for a while,” he said. “The demand on the physical side is not too bad.” In particular, physical demand has been good in India, although quiet for China, he said.

By Allen Sykora of Kitco News;


TDS: Investors May Allocate Into Gold As Hedge Against Risk

Thursday May 30, 2019 09:10

Investors may well turn to gold again as a diversifier if turbulence continues in other markets, said TD Securities. The precious-metals complex has been quite, analysts said. “While the market appears to be starved for yield, gobbling up U.S. sovereign bonds and driving yields lower as global markets increasingly adjust positioning for turbulence in equities, the appetite for bullion diversifiers has yet to appear,” TDS said. “Considering that gold has historically provided a hedge against tail-risk events, we would not be surprised to see investors adjust their allocations into gold, which remain at low levels for this point in the cycle. In the near-term, the lack of trend could keep CTAs [commodity trading advisers] from significantly changing their positioning in the complex, but algorithmic trend followers should be set to liquidate their holdings across U.S. equities as upside momentum in the stock market subsides.”

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