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Risk aversion could quickly boost gold back to recent highs - FXTM

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Gold prices could quickly return to their recent highs if risk aversion flares up in the marketplace, writes FXTM market analyst Han Tan. “Given the negative risks that investors are still faced with, from Brexit uncertainties, to potentially more trade tariffs in the pipeline, and even the possibility of another spike in geopolitical tensions, any of these triggers could very easily send gold back to recent highs above $1500,” Tan says. In the meantime, gold prices are being pressured by stronger U.S. dollar and are only likely to find solid support at the $1,446 an ounce level. “Despite the two Fed rate cuts in the previous quarter, the Dollar Index (DXY) gained 3.38 percent between July and September, fueled by the US economy’s relative resilience compared to its peers,” the analyst adds.

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

 

Price moves in gold are skewed to the downside: MKS PAMP Group 

Tuesday October 1, 2019 09:13

Any future prices moves in gold are skewed to the downside for now, according to MKS PAMP Group. This comes following a drop below the $1,486-75 range. “Targets [are now] sitting toward USD $1,440 - $1,450, while USD $1,475 with extension to $1,480 will act as a pivot for near term direction,” MKS writes. Markets on Tuesday are focusing on the U.S.-China headlines and impeachment news. In terms of data, all eyes are on the U.S. Markit manufacturing PMI, U.S. ISM manufacturing and U.S. construction spending. 

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

 

Gold’s selloff is just ‘a minor shakeout in length’ — TD Securities 

Tuesday October 1, 2019 08:52

The selloff gold is seeing is not a major change in positioning with technical charts still pointing to long gold signals, says TD Securities. “A marginal chart signal prompted extremely skewed positioning to liquidate some length, but our positioning analytics suggest that this move is more likely to be tied to a minor shakeout in length than to a major change in positioning,” strategists at the bank write. Gold prices are currently still falling with December Comex gold trading at $1,470.70, down 0.15% on the day. “However, the combination of some 75 technical analysis trading signals suggests that 43% of signals are still tilted towards the long side in gold. In fact, chart signals in gold present the most compelling case in a cross-asset basket of securities, with the yellow metal holding the crown for the highest absolute percentage of signals pointing long on a 60d moving average basis,” the strategists add.

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

 

Gold, silver ‘rolled back half of summer gains’, U.S. dollar index a major headwind: INTL FCStone 

Tuesday October 1, 2019 08:44

Gold and silver prices are seeing significant declines with the rising U.S. dollar index posing a major headwind, according to INTL FCStone independent commodity consultant Edward Meir. “Both gold and silver got pummeled yesterday and have now rolled back roughly half of their summer break-out gains. The declines are not surprising, as the chorus of bulls have grown louder, oblivious to the fact that the two complexes have already done quite a bit to the upside,” Meir writes. Upping the pressure on gold and silver are U.S. treasury yields and the U.S. dollar. “The fact that U.S. treasury yields are actually heading higher after sharp declines, coupled with the fact that the general dollar index is also pushing close to a two-year high, have both been generating formidable headwinds onto the group for some time now,” Meir says.



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