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Interest around $1,500-$1,490 keeps gold price action 'buoyant': MKS PAMP Group

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The yellow metal’s price action will remain “buoyant” as long as there is interest around the $1,500-$1,490 an ounce level, says MKS PAMP Group. “[Gold] remains broadly supported as recent global data prints continue to paint a bleak picture, with underlying interest through USD $1,500 to USD $1,490 keeping near-term price action buoyant,” MKS writes. “There are limited data releases scheduled for today … All eyes will be on any impeachment and trade headlines.” 

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

 

'Wait-and-see approach’ to dominate this week as Chinese delegation arrives in U.S. — TD Securities

Monday October 7, 2019 08:45

It looks like the market is waiting for some concrete news on the U.S-China trade talks front, according to TD Securities. “Given the non-farm print failed to lock-in the October cut, and more importantly, the change in language vis-a-vis the prospect of further cuts, the market is likely to take a wait-and-see approach with trade talks as the next major catalyst for the complex,” write strategists at TD Securities. Gold prices are struggling to gain significant momentum amid all this. “For the precious metal bulls, the market's lackluster reaction to reports that the Chinese delegation will arrive in Washington with a narrowed scope for talks was certainly a disappointment,” the strategists say. “We estimate that CTAs have flattened out their length in equity indices and could resume buying on the margin, which suggests that the marginal bid in gold could be on the wane.”

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

 

All eyes on U.S.-China trade talks, potential for gold prices to rally — FXTM

Monday October 7, 2019 08:45

The markets are focused on the resumption of the U.S.-China trade talks this Thursday and any bumps on the road could lead to a gold rally, says FXTM. “If negotiations fall apart, there may be a new selloff in equity markets and a rally in Treasuries and gold,” writes FXTM chief market strategist Hussein Sayed. However, an ongoing impeachment inquiry against U.S. President Donald Trump could force some sort of a deal, adds Sayed. “President Trump may be willing to accept an amended deal to avoid a further selloff on Wall Street, especially with the ongoing impeachment inquiry.” Yet, it is still unclear whether Chinese officials will be willing to “provide concessions on industrial policies or government subsidies, which have been a critical demand for the U.S. administration,” says Sayed.

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