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De-Dollarization To Boost Gold Price Rally: SP Angel

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Gold prices are likely to receive a boost from de-dollarization, say SP Angel analysts. “The recent increase in gold prices may be set to continue on the strength of a global push for de-dollarization,” according to the analysts. More specifically, countries like Russia and China are looking to move away from the U.S. dollar. “Countries increasingly hostile to the U.S. and dollar hegemony, such as Russia and China, are searching for alternatives to the dollar including gold,” the analysts add. “According to the World Gold Council, central banks purchased 70% more gold in Q1 of this year than during the same period last year, the most gold bought since Q1 2013.”

By Anna Golubova of Kitco News; agolubova@kitco.com

 

'Wall Of Worries' Is Pushing Investors Into Gold - TD Securities

Tuesday August 13, 2019 08:52

Investors are rushing to safety and they are willing to pay “top-dollar” to get it, according to TD Securities. “Facing a wall of worries, global capital is chasing safety and has been willing to pay top-dollar in order to acquire it,” TD Securities strategists write. Additional fear of capital outflows from Hong Kong is boosting demand for the precious metals. “The ongoing fears of capital outflows from Hong Kong [are] spurring continued appetite for safe haven assets, which are in short supply,” the strategists point out. Another precious metal seeing rising demand is platinum, the strategists add. “Idiosyncratic risks are helping to spur additional demand for platinum, as the AMCU notes that Lonmin's wage offer is trying to ‘provoke a strike’. We note, however, that the trend-follower bid that has supported platinum in the near-term could be running out of steam.”

By Anna Golubova of Kitco News; agolubova@kitco.com

 

Gold Is Eyeing $1,550 Level: MKS PAMP Group 

Tuesday August 13, 2019 08:52

With the overnight buying taking gold to $1,525 an ounce, the metal is now eyeing the $1,550 level, according to MKS PAMP Group. “Early European bids underpinned the metal to a USD $1,525.50 high, with consolidation above USD $1,520 the key to a further extension of the recent move higher. Gold will now look to target resistance toward USD $1,540 - $1,550, while USD $1,520 looms as a pivot for near-term pricing,” MKS writes. The currency moves are still being watched carefully by investors. “The PBOC once again set the Yuan fix higher, increasing to 7.0326 relative to the greenback as the central bank continues to slowly devalue the currency,” MKS says. 

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