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Gold's short-term risk is lower, but the metal is heading to $1,600 in 2020 - TD Securities

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The outlook for gold in the short-term is tilted downwards as the U.S.-China trade deal is boosting risk-on sentiment on the market, says TD Securities. “We made a tactical retreat from our long gold position as the pendulum appears more balanced. We see a risk that prices could break lower as the belief grows that a potential U.S.-Sino trade deal, along with monetary easing, will help the economy avoid a steeper downturn — which could sway the Fed's communication strategy,” TD Securities strategists write. But, long-term gold is heading higher, add the strategists. “We still see gold moving above $1,600/oz next year as global central banks cut further amid a global economic slowdown.”

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

 

Risk event is needed to take gold firmly above $1,500: MKS PAMP Group 

Wednesday October 23, 2019 08:40

Gold will need a new geopolitical risk event or a negative surprise on the stock market to rally significantly above the $1,500 an ounce level, according to MKS PAMP Group. “Gold held firm[ly], however lacking any significant price drivers,” MKS says. “As trade relations between the U.S. and China continue to be viewed in a positive light, it is difficult to see bullion pushing back above USD $1,500 over the near term without a risk event such as Brexit or a significant earnings miss spooking participants.” In the short-term, gold has solid support at $1,475-$1,480, while all gains are kept in check by the $1,495 – $1,500 resistance level, MKS adds. 

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

 

Gold demand during Diwali festival could drop 50% from last year — SP Angel

Wednesday October 23, 2019 08:40

Higher gold prices are weighing on demand in Asia and this year’s Diwali festival could see a 50% drop in purchases, says SP Angel citing NDTV. “Gold sales usually hit 40t on the first day of the festival every year, however Indian bullion experts believe that sales could decrease 50% this year,” SP Angel analysts write. “Gold imports in the country have already fallen due to the increased prices and increase in the import duty.” In September India only imported 26 tonnes versus the 82 tonnes imported the previous year. Gold prices are nearly $260 higher an ounce this October versus a year ago. 

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