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Risk-on sentiment could push gold to monthly lows of $1,445 - Bannockburn Global Forex

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Headlines surrounding Hong-Kong election and China’s concession on intellectual property rights are boosting risk-on sentiment, according to Bannockburn Global Forex. “The combination of the victory of the pro-democracy movement in Hong Kong and an apparent concession by China on intellectual property rights is helping bolster risk appetites to start the week,” writes Bannockburn Global Forex chief market strategist Marc Chandler. The positive news are keeping the pressure on gold, which could be testing monthly lows soon. “Gold is heavy and looks poised to test the month's low near $1445,” Chandler says.

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

 

‘Loss-aversion remains a tough sell’, gold suffers — TD Securities 

Monday November 25, 2019 09:07

New risk-on sentiment triggered by the latest trade headlines is keeping pressure on gold, says TD Securities. “In response to the more optimistic sentiment on the trade file, risk is on, which is keeping appetite for precious metals on the wane,” TD Securities strategists write. “Loss-aversion remains a tough sell for a market that is looking forward to the potential for 2020 reflation, with a Fed that is on pause.” But, investors that look past the noise might be in for a positive surprise in 2020, the strategists add. “TD Securities still expects the Fed to cut rates twice more in 2020 — while also allowing money managers to benefit from a trend of lower real rates.”

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