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Short-term caution vs. long-term momentum in gold — MKS PAMP Group

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Technical overview of gold’s recent price action is forcing MKS PAMP Group to be cautious on gold in the short-term. “We are continually seeing selling on rallies, which leans me toward caution in the short term. Given the over-extended long positioning in gold coupled with inverted treasury yields (which seldom last long), there is risk towards a sharp, concise, downside correction,” says MKS. But, long-term outlook on gold remains bullish. “We still feel the momentum remains to the topside in the longer term, given global CB easing, a likely prolonged period of trade unrest and a host of geopolitical headwinds (Brexit/Iran/Argentina),” MKS adds.

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

Rally in gold to receive a boost from these 3 key events: TD Securities

Thursday August 29, 2019 09:27

Gold prices are likely to continue to rally in September, boosted by the European Central Bank (ECB) and the Federal Reserve (Fed) rate announcements as well as the civil unrest in Hong Kong, according to strategists at TD Securities. “We see multiple event risks on the horizon that could serve as catalysts for a continued rally in gold, including the ECB's announcement which could include QE on September 12, followed by the Fed's rate decision which could once again come under Presidential criticism, and Hong Kong's upcoming democratic protest, which was recently outlawed, particularly following the public rotation of PLA troops in Hong Kong,” the strategists write. Gold looks like an attractive asset in light of the possibility of unconventional policy and swelling negative yielding debt, the strategists add.

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

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