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Risk-off tone after Fed meeting is giving gold prices a boost - TD Securities

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Risk-off sounding U.S.-China headlines are giving gold prices a nice boost above the $1,500 an ounce level, according to TD Securities. “The risk-off tone to start the day amid less optimistic trade headlines is helping provide an additional boost. But, despite the stronger performance, the deterioration of momentum signals have not let up, with prices now needing to rally above $1,517/oz to keep CTAs from liquidating a modest portion of their length,” strategists at TD Securities write. Gold held up well on Wednesday as the Federal Reserve announced its “hawkish cut,” singling a likely pause to come. “While Fed Chair Powell stated that ‘monetary policy is in a good place’ and that it would require a ‘material reassessment’ of the economic outlook for the Fed to revisit the appropriate path for rates … markets seemed to take a liking to the apparent 2020 optionality, data dependence and persistent inflation worries,” the strategists note. “We expect the Fed to stay on hold in December 2019 and January 2020, but expect the Fed to cut rates further in H1 2020.”

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

 

Gold’s focus shifts back to U.S.-China trade talks — RBC Wealth Management

Thursday October 31, 2019 10:10

The gold market is once again focused on the U.S.-China trade talks, says RBC Wealth Management mandating director George Gero. “Gold continues up as we now passed the option expiration, passed the FED and continue to see global worries increase about tariff talks with China,” Gero writes. There are also numerous geopolitical worries keeping gold prices supported. “Eurozone … Chile cancell[ing] two major global meetings due to unrest, Argentina worries of economics, Turkey and Middle East continue to worry and Brexit is still with us so is Hong Kong, as well as U.S. politics.” 

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