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FXTM: 'Gold Is Shielded From Downside Shocks'

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Gold has given up some of its recent strength but the downside remains supported by rate-cut expectations and trade worries, said Lukman Otunuga, research analyst at FXTM. At the moment, the analyst said, prices are struggling for direction after Washington dished out mixed signals over the direction of trade talks with China ahead of an upcoming G20 summit. “Appetite towards the precious metal was dealt a blow earlier in the week after Fed officials toned down expectations over the Fed cutting interest rates next month,” Otunuga said. “Although a stabilizing dollar is also adding to the factors weighing on gold, the precious metal remains resilient and well supported by core themes. For as long as concerns over slowing global growth, U.S. interest-rate-cut expectations and trade tensions remain on investors’ radar, gold is shielded from downside shocks.” Gold’s technical-chart picture remains bullish, the analyst added. “Gold seems to be in the process of a technical correction towards $1,390, which may become the new higher low,” Otunuga said. “Should this point prove to be reliable support, gold has the potential to rebound towards $1,424.”

By Allen Sykora of Kitco News;


INTL FCStone: Gold Market To Take Direction From G20 Meeting

Thursday June 27, 2019 09:03

A weekend summit of the U.S. and Chinese presidents at a Group of 20 meeting could be pivotal for gold, said INTL FCStone. Participants in a wide range of markets will be watching for the outcome. “Gold's fate will also be tied up in the upcoming G20 meeting; should we get a ‘positive’ result, we could see prices move lower, while a disappointing end to the talks could likely take out the recent highs,” INTL FCStone said. Generally, any deterioration in the trade talks has led to worries about the economy and thus pressured risk assets but helped safe havens like gold, and vice-versa.

By Allen Sykora of Kitco News;


Commerzbank: ETF Silver, Platinum Holdings Higher So Far In 2019

Thursday June 27, 2019 09:03

Holdings of platinum and silver by exchange-traded funds have risen for the year to date, while those for palladium are lower, pointed out Commerzbank. ETFs for precious metals trade like a stock but track the price of the commodity, with metal put into storage to back the shares. Since the start of the year, ETF silver holdings have risen by some 140 tonnes, Commerzbank said. “Platinum ETFs have already made further progress along this path; their holdings having been expanded by 640,000 ounces so far this year,” Commerzbank said. “That is already three quarters of the inflows that Johnson Matthey predicted for 2019 as a whole.” Meanwhile, palladium ETFS have posted outflows of 135,000 ounces since the start of the year, the bank pointed out.

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