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Gains in gold limited as violence escalates in Hong Kong - MKS PAMP Group

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Escalating violence in Hong Kong is boosting the risk-off sentiment but gains in precious metals are limited, writes MKS PAMP Group. “The shooting of a protester in Hong Kong amid further unrest saw a mild risk-off skew during the afternoon, however top-side gains were limited and USD $1,475 - $1,480 remains the key near-term pivot for a recovery higher,” MKS says. Solid support in gold is at $1,450 — “as ETF’s continue to hold positioning above this level, while expect CFTC positioning to remain sticky above USD $1,400.”

By Anna Golubova of Kitco News;

Gold to remain under pressure despite gold bulls buying the dip — FXTM 

Monday November 11, 2019 09:17

After the worst week since 2017, gold is likely to remain under pressure in the short-term despite gold bulls looking at price dips as buying opportunities, according to FXTM. “With U.S. equities rising to new highs, it shouldn’t be a big surprise that gold has been punished. The precious metal closed last week 3.6% lower, as US 10-year Treasury yields approached 2%,” says FXTM chief market strategist Hussein Sayed. “If this trend of rising bond yields and equity markets persist, gold will likely remain under pressure. That said, some long-term investors will see the dip in gold prices as an opportunity to accumulate positions.” Bond yields are important to pay attention to, Sayed adds. “What’s more interesting in the bonds markets is that Treasury yield curve has steepened the most since June with 2-year/10-year spread reaching 26.7 basis points.” Also, investors are keeping a close eye on the U.S.-China trade talk headlines, Fed Chair Jerome Powell’s testimony, and the U.S. macro data. “Friday’s U.S. retail sales is the key economic piece of data to watch.”

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