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FXTM: Gold Awaits Catalyst; Plenty Of Major Events On Tap

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Gold remains range-bound while awaiting a fresh catalyst, and there are plenty of news events occurring this week that would move the precious metal and other markets, said FXTM. As of 8:49 a.m. EDT, spot gold was 60 cents higher at $1,426.70 an ounce. “Where gold concludes this week will be influenced by U.S.-China trade talks in Shanghai, the Federal Reserve meeting on Wednesday and most importantly, the U.S. jobs report on Friday,” said Lukman Otunuga, research analyst at FXTM. “Gold will find itself under pressure if the Federal Reserve is less dovish than expected and U.S. jobs data on Friday dishes out an upside surprise. With anything on the table, the precious metal may remain range-bound until a catalyst is triggered.” Turning to the technical charts, the analyst said an intraday breakout above $1,430 should encourage a move toward $1,450.

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

 

BMO: ETF Gold Holdings Post Another Rise

Tuesday July 30, 2019 09:02

Investors are continuing to move into holdings of gold-backed exchange-traded funds, said BMO Capital Markets. The ETFs trade like a stock but track the price of the commodity, with metal put into storage to back the shares. “Ahead of the FOMC [Federal Open Market Committee] meeting this week, ETF holdings in gold are being increased once more with 234koz added on Monday, representing a 0.3% rise,” BMO said. “Total gold holdings are now up 6.1% YTD [year to date], with silver holdings rising 14% YTD.”

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

 

TDS: Platinum Prices Move Higher; Are They Sustainable?

Tuesday July 30, 2019 09:02

Speculators have been moving into platinum this month, but TD Securities questions whether the move higher in prices is sustainable. Spot platinum rose from an early-July low of $802 to an ounce to a high of $882.75 last week before backing off modestly. The metal was down $3 at $876 an ounce as of 8:35 a.m. EDT. “CTAs [Commodity Trading Advisers] are loading up on platinum as trend followers begin a noteworthy round of long accumulation with prices hanging on north of $860/oz,” TDS said. “However, we note that the metal, which lagged gold's performance this year, will likely continue to underperform as manufacturing woes keep demand under wraps. Indeed, positioning data suggests that much of the recent demand has been driven by speculators amid a noteworthy round of money manager short covering, just as ETF [exchange-traded-fund] holdings are on the rise and CTAs load up on the metal — which begs the question of whether the recent rally is sustainable.” 

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

 

Commerzbank: Silver Could Be Due For Consolidation Before Upswing Resumes

Tuesday July 30, 2019 09:02

Silver could be due for a period of consolidation after a sharp run-up in both prices and bullish positioning of speculators, said Commerzbank. September silver ran up from just under $15 an ounce in early July to a pair of highs around $16.80 last week. The most recent data from the Commodity Futures Trading commission show that the net-long, or bullish, position of Comex futures traders stood at 51,656 contracts as of July 23, more than triple the 15,527 contracts from two weeks earlier. “The low interest environment and the prospect of lastingly low or negative rates are likely to ensure ongoing investor demand for gold,” Commerzbank said. “Silver should also profit as a result….In the short term, the marked rise in speculative net long positions in silver should serve as a warning -- according to current CFTC data, [the] last reporting week saw them reach 51,700 contracts, their highest level since November 2017. After a brief period of consolidation, we expect the upswing to continue, with the price rising to $18 per troy ounce by year’s end.”

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