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RBC's Gero: Gold Prices Ease But To Stay In New Higher Range

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Gold is pulling back but is likely to remain in its new higher trading range after the recent rally, said George Gero, managing director with RBC Wealth Management. The bounce last week may have been “too much, too soon,” meaning the market fell back as the Dow Jones Industrial Average futures trade higher by triple digits, Gero said. He added he still looks for “gold to be range bound for now -- new range [of] $1,315 to $1,350 as there are enough worries globally on the economic and political fronts.” As of 8:54 a.m. EDT, Comex August gold was trading $12.40 lower to $1,333.80 an ounce. The metal got as high as $1,352.70 on Friday after a soft U.S. employment report.

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

 

FXTM: Gold Falls As Stocks Bounce Amid Improved Risk Appetite

Monday June 10, 2019 09:37

Gold has given back some of its recent gains as equities bounce, said Han Tan, market analyst at FXTM. Around 8:15 a.m. EDT, the futures contract for the Dow Jones Industrial Average was around 130 points higher. Spot gold was down $14.80 to $1,325.10 an ounce. “Risk-on mode appears to be seeping back into the markets on Monday, with most Asian stocks starting off the new week on a stronger note,” Tan said. “Gold fell 0.9% and is now trading below the $1,330 handle, while the Japanese yen erased Friday’s gains to trade above the 108.4 mark against the dollar at the time of writing.”

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

 

Bannockburn: Markets Looking For U.S. Rate Cut In July

Monday June 10, 2019 09:37

Financial markets have moved prior expectations for a September U.S. interest-rate cut into July after Friday’s softer-than-forecast U.S. jobs report that showed only 75,000 new nonfarm jobs were added in May, said Marc Chandler, chief market strategist with Bannockburn Global Forex. However, few market participants expect a rate cut when Fed policymakers meet on June 18-19, he said. “The July meeting concludes the last day of next month, so the July Fed funds futures contract is a clean metric of expectations for the June meeting,” Chandler said. “It implies a yield of 2.34% compared with the average effective rate of 2.37%. In contrast, the August contract, the best metric for the July meeting, implies a yield of 2.15%.”

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

 

BBH: Heavy Slate Of U.S. Data On Tap In ‘Key Week’ For Dollar

Monday June 10, 2019 09:37

A heavy slate of top-tier U.S. economic data are due out this week, which could be an important one for the U.S. dollar, said Brown Brothers Harriman. “The most important reading will be May retail sales Friday,” BBH said. “Consensus sees headline up 0.6% m/m [month-over-month] and would be a good bounce from the minus 0.2% reported in April. Both sales ex-autos and the so-called control group are seen rising 0.4% m/m. This report may have become more important than the jobs report now.” Other major reports this week include the producer price index on Tuesday, consumer price index Wednesday, weekly jobless claims Thursday and industrial production on Friday. “This could be a key week for the dollar,” BBH said. “The greenback has suffered as Fed easing expectations have gain strength. Recent U.S. data have been unhelpful, and further weakness will likely lead to further dollar losses. Yet the canceled Mexico tariffs remove some recession risk for both nations.”

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