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Two key events to watch this week - MKS PAMP Group

Kitco News

The two key events the precious market is watching this week are the U.K. general election on December 12 and possible additional U.S.-China tariff hikes on December 15, writes MKS PAMP Group. “There remains uncertainty heading into this week’s election in the U.K. and the planned U.S. - China tariff hikes on December 15, two events that should help to underpin price action toward USD $1,445 - $1,450,” MKS says. “We saw early weakness out of China to take gold back below USD $1,460, however the on-shore premium remained relatively stable toward USD $5 to restrict any outside moves on the session.”

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

Gold ‘looking steady and higher soon’ — RBC Wealth Management 

Monday December 09, 2019 11:32

Gold is trading steady between $1,450-$1,500 an ounce, but soon the precious metal can head higher, according to RBC Wealth Management managing direction George Gero. “Trade tariff talks are upcoming for U.S.-China, waiting for approval on Mexico and Canada, upcoming two day FED meeting also holds gold in check, and while buyers wait more headlines and news items there is little reason for long term holders to sell now,” says Gero. “$1,450-$1,500 range bound but looking steady and higher soon.” Gero also notes that gold is seeing good physical demand and good open interest. 

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

Eyeing gold’s break north off $1,500 — TD Securities

Monday December 09, 2019 11:32

Gold is likely to head higher in 2020 and the Federal Reserve has a key role to play, says TD Securities. "We continue to see the Fed's reaction function as asymmetric, which suggests they will either cut rates further if growth disappoints or stay the course if growth recovers, ultimately pressuring real rates further,” write strategists at TD Securities. “This lends strength to the view that gold will continue to bounce higher into 2020 as momentum strategies make a comeback. CTAs are eyeing a break north of $1500/oz to add to their length.”

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