Price Group's Flynn: Geopolitical Turmoil, Shaky Stocks To Support Gold
Phil Flynn,senior market analyst with at Price Futures Group, looks for gold to build onits recent gains over the next week. “Geopolitical turmoil and shaky global stockmarkets will keep gold shiny,” he says. “The murder mystery in Saudi Arabia, aswell as EU [European Union] concerns over Italy’s budget, will keep gold buyingstrong.” By “murder mystery,” Flynn was referring to growing tensions betweenthe U.S. and Saudi Arabia after news reports that journalist JamalKhashoggi disappeared aftergoing into the Saudi consulate in Istanbul on Oct. 2. As of 8:41 a.m. EDT,Comex December gold was $3 higher to $1,233.10 an ounce.
By Allen Sykoraof Kitco News; asykora@kitco.com
Commerzbank: Gold ‘Finding Support From Increased Risk Aversion’
Friday October 19, 2018 08:57
Gold has drawn support as investors shy away from so-called risk assets, withthe metal showing signs of maintaining a break above the 100-day movingaverage, which in turn could prompt more buying, says Commerzbank. “If itsucceeds, technical follow-up buying should push the gold price further up,”the bank says. “At the same time, gold is resisting the firm U.S. dollar. It isfinding support from increased risk aversion among market participants, asreflected in falling stock markets, and from additional ETF[exchange-traded-fund] inflows.” As of an early-morning research note, gold ineuro terms was trading at a three-month high near ?,?1,070 per troy ounce. “Theconflict between Italy and the EU [European Union] over the Italian draftbudget for 2019 is escalating,” Commerzbank says. “The question is alreadybeing raised of how sustainable Italian debts are, especially if yieldscontinue to climb. The yield spread between 10-year Italian and Germangovernment bonds surged to nearly 330 basis points yesterday. Concerns that theeuro-zone crisis could flare up again should support demand for gold as a safehaven.”
By Allen Sykoraof Kitco News; asykora@kitco.com
SP Angel: Gold HeadedFor Third Straight Up Week
Friday October 19, 2018 08:57
Gold is heading for athird straight week of gains, which would be the longest since January, amidrenewed interest in the precious metal as a safe haven, says commoditiesbrokerage SP Angel. “Volatility in equity markets and tensions in the MiddleEast have spurred demand for bullion, with holdings in exchange-traded fundsbacked by the metal expanding to the highest level in more six weeks,” SP Angelcontinues. “Concerns about the economy were further fueled by a JP Morgan Chasemodel indicating that the chance of the U.S. tipping into a recession in thenext two years is now greater than 60%.” SP Angel cites Bloomberg data showing that exchange-traded-fund holdingsof gold rose to 2,113.5 tonnes on Thursday, the highest since Sept. 3. As of8:37 a.m. EDT, spot gold was $3.50 higher to $1,229.30 an ounce.
By Allen Sykoraof Kitco News; asykora@kitco.com
Commerzbank: Swiss Gold Exports To India Decline
Friday October 19, 2018 08:57
Swiss gold exports to India declined sharply last month, with demandapparently hurt by high gold prices in lndian rupees, says Commerzbank.Analysts cite Swiss customs data showing that the country exported only 16.5tonnes of gold to India in September, which was nearly 60% less than in August.“The sharp rise in the gold price in Indian rupees is likely to have played itspart in this,” Commerzbank says. “It has been picking up ever since mid-Augustas the currency has depreciated, and recently reached its highest level in overtwo years. The All India Gems & Jewelry Trade Federation thereforeenvisages very weak gold demand around this year’s Hindu festivals of Dhanterasand Diwali, which will be taking place in early November.”
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.