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Gold Price Could Jump To $1,600 On Military Intervention in Hong Kong: SP Angel

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Gold prices could surge more than $100 if there is a Chinese military intervention into Hong Kong, according to analysts at SP Angel. “Gold prices are likely to react dramatically to events as they unfold and we estimate that gold could rise >$100/oz relatively quickly on mass arrests or fatalities,” they write. At the time of writing, December Comex gold futures are trading at $1,509.40, down 0.42% on the day. Tensions remain high as protesters are still out on the streets of Hong Kong and China is warning of “severe consequences if they continue.” China has gathered its military forces just outside of Hong Kong. “To be fair China is giving ample warning with videos of the military practicing riot-control procedures on the border … [But, it] risks another Tiananmen Square if it sends military forces into HK and any resulting fatalities will have profound implications for relations with China,” SP Angel states.

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

 

Fed to Set Markets Up for Disappointment: TD Securities

Wednesday August 21, 2019 08:43

With the FOMC meeting minutes to be released on Wednesday and the Federal Reserve Chair Jerome Powell scheduled to speak at Jackson Hole on Friday, the central bank might be setting the market up for disappointment, says TD Securities. “We continue to expect that an emboldened Fed could stay the course and ultimately may be setting markets up for a disappointment this week — after all, with equities still resilient and CDX IG only 10bp wider, financial conditions have not tightened materially,” the strategists at TD Securities write. “This argument is strengthened by recent messaging from several speakers, included Bullard, Evans, Daly, Rosenberg and George.”

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

 

FOMC Minutes Take On ‘Greater Importance’ - BBH 

Wednesday August 21, 2019 08:43

The FOMC meeting minutes, which will be released on Wednesday, are taking on a greater importance due to lack of Federal Reserve speakers in the past few weeks, says BBH global head of currency strategy Win Thin. “The July 31 meeting saw the Fed embark on what Chair Powell termed a mid-cycle adjustment. Given the lack of Fed speakers since the decision, these minutes take on greater importance in divining the Fed’s future rate path.” Markets are also paying close attention to Minneapolis Fed President Neel Kashkari, who is is scheduled to speak on Wednesday and Thursday. But, the main event of the week will come Friday, when Fed Chair Jerome Powell makes his address at Jackson Hole. “WIRP suggests 100% odds of a cut September 18, with 13% odds of a 50 bp move,” Thin adds.   

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