Make Kitco Your Homepage

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

Kitco News

Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!

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;

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;

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.