BMO: Emerging-Market Central Banks To Keep Adding Gold
Central banks in emerging-market nations are likely to keep addinggold to their reserves, says BMO Capital Markets. Analysts offered this viewafter citing a Bloomberg news reportthat the Bank of Russia added another 1% to its gold holdings in May, takingits total to 62 million troy ounces. “This continues the trend over the pastfew years where Russia is selling U.S. Treasuries and allocating more to gold,”BMO says. “We expect global central banks, particularly those in emergingmarkets, to continue to add to gold holdings at a steady pace over the comingyears amid efforts to diversify their reserves.”
By Allen Sykoraof Kitco News; asykora@kitco.com
RBC’s Gero: GoldHits Fresh Lows Due To U.S. Dollar Strength
Thursday June 21, 2018 09:43
Gold prices havehit a fresh low for 2018 after U.S. dollar strength and hawkishly construedcomments from central bankers, including Federal Reserve Chair Jerome Powell onWednesday, says George Gero, managing director with RBC Wealth Management.“Investors have been fleeing gold. Even large ETFs [exchange-traded funds] havelost tonnage, as investors [are] not accumulating as a haven so far andcommodity margin calls in many instances have added to gold’s woes,” Gero says.As of 9:14 a.m. EDT, Comex August gold was $7.10 lower to $1,267.40 an ounce.
By Allen Sykoraof Kitco News; asykora@kitco.com
Commerzbank: Swiss Exports To China RiseBut Those To India Weak
Thursday June 21, 2018 09:43
Commerzbank describes Swiss exports of gold to key Asiannations last month as mixed. Analysts cite data from Swiss Federal CustomsAdministration. “Switzerland exported more gold again in May, though thepicture was mixed as regards gold exports to Asia. Exports to China and HongKong climbed noticeably both month-on-month and year-on-year to a combinedtotal of 63.3 tonnes,” the bank says. “By contrast, Swiss gold exports to Indiawere significantly down at only 15.7 tonnes. Indians have been holding back onbuying gold for months now because of the high gold prices in local currency.What is more, they imported a lot of gold last year - apparently more than theyneeded.
By Allen Sykoraof Kitco News; asykora@kitco.com
FXTM: ‘Gold Is Firmly Bearish On The Daily Charts’
Thursday June 21, 2018 09:43
Gold’s technical-chart picture is bearishat the moment, says Lukman Otunuga,research analyst at FXTM. The precious metal has been under pressure due to astronger U.S. dollar for most of the week, the analyst points out. “One would have expected heightened trade concerns to elevate theyellow metal, but prices simply remained at depressed levels,” Otunuga says,citing hawkish comments from Federal Reserve Chair Jerome Powell at a EuropeanCentral Bank forum. “While uncertainty over global trade tensions may offersome support further down the road, investors seem more concerned with anappreciating dollar and Fed hike expectations,” Otunuga says. “Focusing solelyon the technical picture, gold is firmly bearish on the daily charts. Sustainedweakness below the $1,280 level could open a path towards $1,260.” As of 9:09a.m. EDT, spot gold was $2.90 lower to $1,264.70 an ounce.
By Allen SykoraFor Kitco News
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asykora@kitco.com 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.