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The downside in gold is limited: FXTM

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Even though the near-term outlook for gold remains skewed to the downside, any move down is limited, according to FXTM. “[Gold] suffered its biggest daily loss in almost three years yesterday, shedding over $40 in valuation as risk-on repelled investors from safe haven assets and boosted appetite for riskier investments,” writes FXTM senior research analyst Lukman Otunuga. “While the precious metal is positioned to weaken further in the near term amid the improving market sentiment, the downside will be limited by core market themes.” Supportive gold elements such as global growth concerns, trade uncertainty, and low interest rate environment are not going away. “Sustained weakness below $1525 should encourage a decline towards $1500 in the near term,” Otunuga writes.  

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

 

Gold, silver correction 'right on cue' - INTL FCStone

Friday September 06, 2019 08:27

The downside correction in both gold and silver comes right on time, says INTL FCStone independent consultant Edward Meir. “The correction was arguably right on cue, as we also started to see increasingly giddy upside targets associated with each of the two metals, a telling sign of a top,” Meir writes. The higher the gold prices climb, the more dangerous the world becomes, the consultant adds. For example, with gold at $10,000, "we likely will have a total crash in the global financial system and so walking around with gold bars will not exactly do anyone much good,” he notes. 

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

 

Subsiding fear put pressure gold, silver and platinum - TD Securities 

Friday September 06, 2019 08:27

Investors’ willingness to take on more risky assets is putting pressure on the precious metals sector, according to TD Securities. “Gold and friends have begun to consolidate as the positive trade narrative and a modest rebound in US PMI data saw fear subside in the market as money managers preferred to take on risk,” the bank’s strategists write. On top of that, in just under two weeks, the Federal Reserve may end up disappointing financial markets, which will weigh on the precious metals even more. “We continue to suspect that the Fed may disappoint market expectations — after all, the S&P sits only a few percentage points off its highs, financial conditions have not tightened materially and several external event risks have come to a simmer. With long positioning extremely stretched, gold, silver and platinum could continue to trade lower in the near-term,” the strategists add.

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