Gold mayneed a fresh catalyst to surge again, says Lukman Otunuga, research analyst at FXTM. As of 9:05 a.m. EDT, spotmetal was $2.30 higher to $1,298.10 an ounce. “There is a possibilitythat safe-haven gold could be waiting for the G7 [Group of 7] summit on Fridayto make its next big move,” Otunuga says. “Although global trade fears remain adominant market theme, the yellow metal clearly needs a fresh catalyst toaccelerate the flight to safety. This much-needed catalyst could come in theform of [U.S. President] Donald Trump if he creates chaos and uncertaintyduring the summit. A fresh wave of risk aversion birthed from heightened tradefears could elevate gold towards $1,300 and beyond.” Turning to the technicalcharts, Otunuga says a solid breakout above $1,300 could encourage an inclinehigher towards $1,324. “Alternatively, sustained weakness below this level mayopen a path back towards $1,280,” the analyst concludes.
By Allen Sykoraof Kitco News; asykora@kitco.com
Wednesday June 6, 2018 09:14
Gold mayhave trouble breaking significantly above the psychological $1,300-an-ouncelevel until after next week’s meeting of the U.S. Federal Open MarketCommittee, says Commerzbank. Asof 9:05 a.m. EDT, spot metal was $2.30 higher to $1,298.10 an ounce. Fedpolicymakers are widely expected to hike interest rates another 25 basispoints. This tends to hurt gold by underpinning the U.S. dollar and increasingthe so-called “opportunity cost” - or lost interest income - of holding anon-yielding asset like precious metals. “Gold is againbattling with the $1,300-per-troy-ounce mark,” Commerzbank says. “So far it hasbeen unable to exceed it in any lasting fashion, however, no doubt partlybecause of the upcoming Fed meeting. This is because the U.S. Federal Reservewill in all likelihood raise interest rates again next week, which probablyprecludes any noticeable rise in the gold price until then.”
By Allen Sykoraof Kitco News; asykora@kitco.com
Wednesday June 6, 2018 09:14
Gold hasrisen for the second day in a row as investors “buy on [the] dip” after recentweakness and as the U.S. dollar slips ahead of next week’s meeting of theFederal Open Market Committee, says commodities brokerage SP Angel. “Fed policymakers are widely expected to raise interest rates during the June 12-13meeting, with interest in gold suggesting a dollar correction to extend beyondthe meet[ing],” SP Angel says. Asof 9:05 a.m. EDT, spot metal was $2.30 higher to $1,298.10 an ounce. Just aheadof this, the spot dollar index was 0.27 point lower to 93.628.
By Allen SykoraFor Kitco News
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