Market Nuggets
Gold's Close Above $1,460 Opens Door To $1,500, Says FXTM
If gold prices can confidently close above $1,460 an ounce, it may open the doors for $1,485 and then $1,500 an ounce, FXTM writes in a note to clients. “Gold is positioned to remain one of the prime destinations of safety this week as the horrible combination of US-China trade disputes and global growth concerns boost appetite for safe-haven assets,” FXTM senior research analyst Lukman Otunuga says. Gold’s technical picture is currently bullish and it is likely to stay that way for the near-term. “For as long as risk appetite is dented by global growth fears, trade drama and Brexit uncertainty among many other geopolitical risk factors, Gold bulls will remain in the driving seat,” states Otunuga.
By Anna Golubova of Kitco News; agolubova@kitco.com
India's Gold Imports Hit 3-Year Lows In July: BMO
Tuesday August 6, 2019 09:13
Rising prices and higher import taxes have dragged Indian gold imports to three-year lows in July, posting a 42% annual drop in value terms and a 55% decline in volume terms, down at 39.66 tonnes on a yearly basis, according to BMO Capital Markets. “A combination of record high prices in rupees as well as a recent hike in import taxes was behind the sharp fall in imports with expectations for August imports to be similarly impacted, particularly as retail demand remains sluggish,” writes BMO Capital Markets managing director of commodities research Colin Hamilton.
By Anna Golubova of Kitco News; agolubova@kitco.com
Renewed 50bp Fed Rate Cut Debate Supports Gold — TD Securities
Tuesday August 6, 2019 08:56
The gold market has room to keep climbing in the next month as Federal Reserve’s easing expectations support the yellow metal, according to TD Securities (TDS). “Market expectations that the Fed may have received a green light to start an easing cycle, as opposed to a few ‘mid-cycle cuts’ as suggested by Chair Powell, are growing and supporting the precious metals complex,” the strategists at TD Securities write. The renewed debate over a possible 50-basis-point cut in September is also getting a lot of attention. “Expectations that the U.S. Central bank could cut rates as much as 50bp in September in order to combat the trade war could still grow with market pricing in less than a 30% probability of a 50bp cut at time of writing,” TDS states. “Gold could still have room to shine considering its convexity related to its zero-coupon nature and uber-long duration.”
By Anna Golubova of Kitco News; agolubova@kitco.com
Gold To Push Higher Based On ‘Constructive Chart Patterns’: INTL FCStone
Tuesday August 6, 2019 08:40
Despite trading flat this morning, gold prices are still likely to push higher based on “constructive chart patterns,” writes INTL FCStone independent consultant Edward Meir. The trade war will also continue to support risk-off environment in the markets. “The state of relations between the [U.S. and China] in our view is at its worst since the trade war began,” says Meir. “After a tumultuous day yesterday, things hardly improved even after the markets closed in the US, as that was when the US Treasury formally took steps to officially brand China a currency manipulator.”
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