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Break north of $1,500 to re-start the gold rally - TD Securities

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Loss-aversion will be a growing theme next year and a move above $1,500 an ounce in gold could re-start the rally, according to TD Securities. “Loss-aversion will be a growing theme next year because real rates are subdued around the developed world, which will drive capital towards 'safe assets', which are scarce,” strategists at TD Securities write. “CTAs are eyeing a break north of $1500/oz to add to their length. We suspect that a break north of this range would kickstart the next leg of the yellow metal's rally.” Palladium also looks good in the new year with prices potentially heading to $2,000. “Palladium continues to make new all-time highs as the ‘ESG’ trend is gathering steam, and will result in increasing emissions controls across the globe — 2020 will be the year in which the largest number of emissions legislation changes will be adopted, which will continue to increase loadings.”

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

 

Standard Chartered: Physical market cushions gold’s downside

Thursday December 05, 2019 08:28

The physical market has cushioned gold’s downside and prices may benefit from the macroeconomic backdrop in 2020, said Standard Chartered. “Trade negotiations, rather than the U.K. elections or the December FOMC [Federal Open Market Committee meeting], continue to set the tone of trading for the gold market,” said Standard Chartered. “Concerns over a ‘phase one’ [U.S.-China trade] agreement have buoyed gold prices, but physical demand, although softer y/y, has proven to be price elastic. Provisional estimates indicate India’s gold imports rose to a five-month high in November and the local market swung to a premium.” The area around $1,450 an ounce remains a key chart level, as a break below would suggest a test toward $1,400, Standard Chartered said. “For now, the physical market is providing a sufficient cushion against the downside, and we believe the macro environment presents upside risk to prices in 2020.”

By Allen Sykora of Kitco News; asykora@kitco.com

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