Market Nuggets
Gold holds the $1,450 support - MKS PAMP Group
The yellow metal is managing to hold the $1,450 an ounce level amid positive U.S.-China trade news and rallying equities, writes MKS PAMP Group. “Reports from news outlet Xinhua noted that top trade negotiators from both the U.S. and China held a phone call and that the parties had reached a ‘consensus on solving issues’. The news saw a pop in risk to drive gold to the session low of USD $1,451.80.” MKS says. “Mild supportive interest remained to restrict a test of USD $1,450 throughout the session and bullion was able to push back toward USD $1,455.” There is still a risk of gold re-testing $1,445 support as the December futures contract expires, adds MKS. “The record prints to equities continues to create headwinds for gold and the metal moves closer to a re-test of the hard support around USD $1,450 - $1,445 as we roll out of the December futures contract.”
By Anna Golubova of Kitco News; agolubova@kitco.com
Fed to still cut rates two more times in 2020 — TD Securities
Tuesday November 26, 2019 09:23
Despite the Federal Reserve Chair Jerome Powell’s “glass ‘more than half full’” speech, the central bank is still likely to cut rates two more times next year, according to TD Securities. “The yield curve has gradually flattened over the past two weeks, despite apparent progress on the trade file, meanwhile equity markets recorded all-time highs amid a massive effort from the Fed to provide liquidity. In this context, we expect that further deceleration in growth will ultimately provide the market with the impetus to pressure the Fed into cutting rates twice more in the new year,” strategists at TD Securities write. Also, the market realizes that the Fed is still very far from hiking rates, which is a long-term driver for gold, the strategists add. “[Fed officials] are far from hiking and are likely to allow inflation to creep higher, thereby suppressing real rates and maintaining the allure of gold in a portfolio.”
By Anna Golubova of Kitco News; agolubova@kitco.com
Gold sticks to $1,450-$1,500 range — RBC Wealth Management
Tuesday November 26, 2019 09:23
Gold prices continue to trade in the $1,450-$1,500 range, but any negative news headlines about the U.S.-China trade talks could push the precious metal up, says RBC Wealth Management managing director George Gero. “Continue to look for $1,450-$1,500 gold range and possible upside moves if unexpected headlines that are political or economic change the optimistic U.S. investment space to less risk,” Gero writes. Also to watch this week, are the options expirations on Friday.
