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Fed speak, U.S.-China trade deal could send gold back to $1,460 - FXTM

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Volatile risk sentiment and positive U.S.-China trade talks are keeping the downward pressure on gold prices, writes FXTM market analyst Han Tan. “Risk sentiment has been volatile of late, with investors reacting to every headline pertaining to the US-China trade conflict. A signed deal this month would ease global recession fears while potentially sending Gold prices towards $1,460,” Tan says. All eyes are also on the Federal Reserve officials’ speeches on Wednesday. “The slate of speeches by Fed officials over the coming days could offer further support for the Dollar, especially if they continue trumpeting the U.S. economy’s solid footing. However, should investors get the sense that Fed officials are still open to policy easing over the near-term, we could see DXY unwinding recent gains,” Tan adds.

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

 

Gold’s selloff could last a few more days — TD Securities 

Wednesday November 06, 2019 09:14

Slowing price action in gold could encourage more selling this week after prices dropped more than 1.5% on Tuesday, according to TD Securities. “We caution that algos are still set to sell their length in the coming days, which could in turn prompt other gold bugs liquidate their holdings,” the bank’s strategists write. “Loss-avoidance is a tough sell, when equities' are breaking out.” However, longer-term outlook favors gold, the strategists add. “The optionality presented by the Fed, which it would be quick to add to cuts if needed but would likely not hike rates any time soon, suggests that many will still see a need for holding the ‘quintessential hedge’, which argues against a rout.”

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

 

Look for gold at $1,485-$1,525: Price dips are buying opportunities — RBC Wealth Management 

Wednesday November 06, 2019 09:14

Tuesday’s price dip presents a buying opportunity for long-term investors, says RBC Wealth Management managing director George Gero. “Gold prices came up as an escalator ride and yesterday went down in an elevator ride as cascading sell stops from overbought conditions triggered lows to below $1.485,” Gero writes. “Continue to look for $1,485-$1,525 range bound gold as large dips present buying opportunities for longer term investors.” Traders are carefully watching economic headlines as well as Fed speak. 

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