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Market is still under pricing October rate cut - TD Securities

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Investors are still under pricing a chance of a Federal Reserve rate cut in October, says TD Securities. “While the impeachment inquiry narrative has provided an added boost to gold, the fact that the Fed will need to provide additional liquidity to the market in the form of a rate cut and likely by announcing asset purchases is top of mind for the gold bugs,” strategists at TD Securities write. At the end of the day, this means more demand for precious metals, especially gold. “This will likely compress term premium, and could add some pressure on interest rates. Considering that global growth continues to slow, demand for safe haven assets will eventually grow which should spillover into precious metals.” On top of that the U.S. political drama involving impeachment investigation against U.S. President Donald Trump should give the gold rally some legs in the short term, TD Securities adds.

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

After a short pullback, gold will see more gains — RBC Wealth Management

Wednesday September 25, 2019 10:22

Following a short-term pullback in all precious metals, gold will return to gains as geopolitical headlines continue to dominate the marketplace, writes George Gero, managing director at RBC Wealth Management. “Gold investors now see pullback as dollar [is] stronger. This weakens copper, silver, crude, platinum and palladium, but could be short lived [in light of] worries with impeachment politics, add to new Brexit headlines, and China, tariffs in Europe possibly, continuing Middle East worries,” Gero says. The range for gold continues to be between $1,500-$1,550. “Eventually [we] may add to $1,600 area as political headlines heat up and global economics pull back. Gold has been and is a store of value in times to these types of stress now evident,” he adds.

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

Markets await Trump’s Ukraine call transcript: If gold breaks $1,535, watch $1,555 — MKS PAMP Group

Wednesday September 25, 2019 08:57

From a technical perspective, if gold breaks the resistance at $1,535 on Wednesday, the metal can make a move towards $1,555, according to MKS PAMP Group. “Resistance around USD $1,535, should it be broken will act as a pivot to a further extension toward USD $1,550 - $1,555, while supportive interest through USD $1,525 - $1,520 should restrict further declines amid the current geopolitical uncertainty.” The main drivers of the day include the release of U.S. President Donald Trump’s Ukraine call transcript, Brexit, and any Iran-related headlines. “We remain of the option the risk is to the top-side as we await the transcript from President Trump’s Ukraine call to ascertain the strength of the Impeachment inquiry, while we also be watching the U.K. parliament very closely and any further trade updates and Iran updates,” MKS writes.

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

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