FXTM: Gold Remains In Range Despite Renewed Weakness
Gold is back on the defensive yet remains within the widetrading band that has been in place all year so far, says LukmanOtunuga, research analyst atFXTM. “An aggressively appreciating dollar, expectations of higherU.S interest rates and easing geopolitical tensions are the most likelyculprits for the yellow metal’s depreciation,” the analyst says. “With thedollar expected to remain supported by rising bond yields and Fed hikespeculation, zero-yielding gold could feel the heat. If [the] U.S GDP[gross-domestic-product] data release dishes out an upside surprise on Friday,bears may be injected with enough inspiration to send prices towards $1,300.”As of 8:20 a.m. EDT, spot gold was $9.60 softer to $1,320.60 an ounce. “All inall, it must be kept in mind that gold still remains in a wide $60 range withsupport at $1,300 and resistance at $1,360,” Otunuga says. “Prices are likelyto remain confined within these regions until a fresh catalyst is brought intothe picture.”
By Allen Sykoraof Kitco News; asykora@kitco.com
MKS: ETFsContinue To Accumulate Gold
Wednesday April 25, 2018 08:00
Exchange-traded-fundinvestors have continued to seek exposure to gold, with ETF holdings rising byanother 95,000 ounces Tuesday, says Alex Thorndike, senior precious-metalsdealer with MKS (Switzerland) S.A. “That takes themonthly accrued buying to ~1.6 million ounces across gold ETFs, according toBloomberg, and we feel that if this continues, gold should remain supportedabove $1,300-1,310,” Thorndike says. “We see strong resistance at $1,360-70area, where we have stalled numerous times.” The ETFs trade like a stock but track the price of the commodity,with metal put into storage to back the shares. As of7:49 a.m. EDT, spot gold was down $9.75 to $1,320.45 an ounce.
By Allen Sykoraof Kitco News; asykora@kitco.com
Commerzbank: Gold/Silver Ratio ClimbingBack Toward 80
Wednesday April 25, 2018 08:00
The gold/silver ratio has started climbing again, points out Commerzbank. Theratio measures how many ounces of silver it takes to buy an ounce of gold, witha lower number meaning silver outperformance, and vice-versa. Gold is back onthe defensive Tuesday after gains on Monday, with a firmer U.S. dollar puttingpressure on the metal, Commerzbank says. “After its briefsurge to a 2 1/2 -month high last Thursday, silver has dropped back noticeably...,”the bank says. “The gold/silver ratio, which had fallen for a time to 78, hasclimbed back almost to 80 as a result. Silver has clearly been dragged down bybase metals in recent days, whereas gold has fared somewhat better, despitesuffering some losses.” As of7:49 a.m. EDT, spot gold was down $9.75 to $1,320.45 an ounce, while silver wasdown 15 cents to $16.541. This meant a gold/silver ratio of 79.8.
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