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Investors have 'no reason to sell gold' - FXTM

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The outlook for gold prices remains positive, says FXTM chief market strategist Hussein Sayed. “All indicators are bullish to Gold, whether it’s the trade dispute, falling bond yields, Brexit uncertainty or worsening economic outlook,” Sayed says. Unless there is a significant improvement in several areas, such as trade, “there’s no reason for investors to sell Gold,” the strategist adds. On Wednesday, gold continues to trade near its multi-year highs amid some profit-taking. “With no timetable set up for trade talks and economic data pointing south, we may see further selloff in U.S. and global equity markets as the risk of recession continues to rise, and that is likely to keep pushing U.S. Treasury yields lower,” Sayed writes.

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

 

Gold sees risk of consolidation ahead of Fed, ECB monetary policy meetings: TD Securities

Wednesday September 4, 2019 08:54

Gold could see some consolidation ahead of the Federal Reserve and European Central Bank monetary policy meetings due to rising risk-on sentiment, according to TD Securities. “The formal withdrawal of the extradition bill in Hong Kong is catalyzing a sharp risk-on move which is sapping fear out of global markets, as money managers see fewer event risks from Brexit and Hong Kong,” the bank’s strategists write. Recovery in risk appetite could put some short-term pressure on gold. “Considering that positioning is aggressively skewed long, fewer event risks could see gold consolidate ahead of the various central bank meetings in September, despite its still-attractive luster,” the strategists add.

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

 

Improved market sentiment is not stopping silver’s rally: INTL FCStone

Wednesday September 4, 2019 08:44

Equity markets are recovering on news that Hong Kong’s controversial extradition bill, which triggered months of protests, will be withdrawn by Chief Executive Carrie Lam. However, silver is not paying any attention as the metal continues its rally, according to INTL FCStone Independent Commodity Consultant Edward Meir. “The [Hong Kong] decision triggered a 4% run in the Hang Seng- the strongest move in years - with stocks of property developers leading the advance … There were modest gains in other Asia-Pac markets as well, but much stronger gains are surfacing in both Europe and the U.S., where the Dow is on track for a 200-point opening advance,” Meir writes. Silver, in the meantime, is hitting fresh three-year highs despite retreating gold prices. “There has been a predictable response in the commodity markets … the dollar is sharply lower (off by almost .40 basis the general dollar index), as is gold (down $10/ounce at $1546). However, silver is continuing its stunning rally, now up another 50 cents an ounce as it approaches $20/ounce,” Meir adds. The withdrawal of the extradition bill might not be enough to calm the protests in Hong Kong. “Opposition demands center on four other items, including the release of jailed activists and an investigation into police brutality … we think the protests will continue,” states Meir.

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