Make Kitco Your Homepage

RBC's Gero: gold eases but look for bargain hunting on big price dips

Kitco News

The combination of a stronger stock market and U.S. dollar has prompted a pullback in gold futures, but traders may step in to buy on bigger price pullbacks, said George Gero, managing director with RBC Wealth Management. As of 8:37 a.m. EST, Comex April gold was down $3.70 to $1,575.80 an ounce. The March U.S. dollar index was up 0.071 point to 98.785, and the futures for the Dow Jones Industrial Average were up by around 80 points ahead of the open on Wall Street. Gero commented that gold remains within a trading range of $1,550 to $1,600 an ounce, with some evening-out trades taking place lately. Still, he said, expect “some more bargain hunters in gold if we see bigger dips,” adding that the market has an “upward bias as we return to political headlines, basic economics and global benign interest rates.”

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

 

TDS: investment interest in gold to keep growing

Tuesday February 11, 2020 08:55

There are already a lot of bulls in the gold market but prices of the precious metal can run still higher, said TD Securities. “While coronavirus fears are keeping safe-haven demand flowing towards the precious-metals complex, these flows are often reversed as extended positioning continues to cap upside moves,” TDS said. “We acknowledge that the gold trade is crowded, but we still expect that investment demand for the yellow metal will grow as the suppression of real rates across the globe will keep the gold bug alive in 2020. That being said, we expect only marginal flows from CTAs [Commodity Trading Advisers] as algorithmic trend followers remain well positioned for the precious-metal bull market.” The most recent positioning data from the CommodityFutures Trading Commission showed that as of Feb. 4, money managers were net long by 181,610 futures contracts despite a decline from the prior week. Meanwhile, TDS noted that U.K. trade data for December showed a massive increase in gold exports, which “suggests that China's appetite for bullion is still growing.”

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.