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A move below $1,440 in gold is a worry for traders - RBC Wealth Management

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From a technical perspective, a move below the $1,440 level is a worry for traders, says RBC Wealth Management managing director George Gero. “Approach towards 200 day moving averages lower below 1440 area also technically a worry for traders,” Gero writes. RBC is looking for gold to trade around the $1,450-$1,500 area in the short-term with new worrying headlines from South America, Middle East and the U.S. likely to boost the precious metal, adds Gero. Investors are watching “President Trump at NY Economic Club, Fed speakers and Chair Powell on tap this week. Firm dollar index and rates creeping up recently adding to headwinds.”

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

Gold’s seasonal pattern: Sell into year-end and recover into the new year — BMO

Tuesday November 12, 2019 09:12

Gold prices have a seasonal pattern — sell-off into year-end and then recover into the new year, which is what is happening now, says BMO Capital Markets managing director of commodities research Colin Hamilton. “Gold does now seem to have a seasonal pattern of selling off into year-end, aided by Chinese investment fund selling, before a recovery into the new year as purchases resume,” Hamilton writes. Overall, trade uncertainty is likely to continue to support the gold market but a major breakout is looking unlikely. “We do see a risk that a year-end fear of missing out utilizes gold as a funding source given strong performance over the year to date; however, given the high geopolitical risk, a breakout from the $1,500/oz +/- $75/oz range appears unlikely,” Hamilton says.

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

Gold’s ‘shake-out in length’ is not over — TD Securities

Tuesday November 12, 2019 09:13

Gold prices are trading below their support levels and the selloff might not be over, according to TD Securities. “Considering that prices are now firmly below support, while open interest still sits near all-time highs, we think a shake-out in length will be sustained for a while longer,” write TD Securities strategists. “Our estimated breakeven entry point for the bulls now stands very close to market pricing at $1,438/oz, suggesting that the pain trade is still lower, which could flush out the excess long positioning.” And Tuesday’s downward driver could be U.S. President Donald Trump’s speech, add the strategists. “Trump's lunchtime speech, which reportedly could include constructive remarks on U.S.-China negotiations, could serve as a catalyst.”

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

 

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