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'There's little reason' for long-term gold holders to sell - RBC Wealth Management

Kitco News

Gold is looking to continue to trade steady and higher as prices remain in the $1,450-$1,500 range, says RBC Wealth Management managing director 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,” Gero writes. “$1,450-$1,500 range bound but looking steady and higher soon.” Gero also notes good open interest in gold. “Open interest still high for gold futures 694,026, futures for gold options,” he says. “Upcoming holiday jewelry sales are closely watched here as well.”

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

 

Fed decision ‘unlikely to provide respite’ to gold bulls - TD Securities 

Tuesday December 10, 2019 11:07

The Federal Reserve rate announcement on Wednesday is not likely to give any positive clues the gold bulls are looking for, according to TD Securities. “This week's FOMC meeting is unlikely to provide some respite for the precious metal bulls. While the bulls are looking for signs that more cuts are on the table for 2020, last Friday's strong jobs number certainly has not helped their cause,” write strategists at TD Securities. Gold, however, still looks good for 2020 as the Fed looks likely to either cut rates again or stay the current course. “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,” the strategists note. “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 $1505/oz to add to their length.” 

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