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Any Downward Price Moves In Gold Are Restricted By Trade Worries: MKS PAMP GROUP

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Trade talks are still ongoing and will continue to support the yellow metal, limiting any downside moves, writes MKS PAMP GROUP. “Trade discussions remain fluid and prone to change, underpinning gold as a safe-haven, which is more than likely to restrict down-side moves,” MKS states. The next range resistance for gold is at $1,522 - $1,535. Silver is expected to mirror the yellow metal, MKS adds. “Silver pricing is expected to generally follow gold, with support sitting toward USD $16.50 - $16.60, while resistance above the psychological USD $17 cuts in through USD $17.30 - $17.50.”

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

 

U.S. Dollar Strength Limits Gold's Upside - TD Securities 

Tuesday August 20, 2019 08:43

Despite being supported north of $1,500 an ounce, gold’s gains are limited by the strong U.S. dollar, according to TD Securities. “Recent dollar strength continues to constrain any excitement on the day,” the bank’s strategist write. The biggest news of the week will be Federal Reserve Chair Jerome Powell speech at the Jackson Hole on Friday, which could bring disappointment to the markets. “The Committee is divided on the outlook for rates and the impact of weak global growth and trade uncertainty on the U.S. remains uncertain, while financial conditions have not tightened materially — which may embolden the Fed to stay the course and ultimately set markets up for a disappointment this week.” Gold could be set up to edge down in the short-term while remaining in an overall price-supportive environment, the strategists add. “With gold positioning firmly skewed to long exposure, disappointing market expectations suggest prices could be poised for a consolidation lower in the near term, but any downside will likely be contained as a weakening economy, growing negative debt pile and dovish global central banks remain a strong platform for the yellow metal moving forward.”

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