Standard Chartered: Floor For Gold Price To Keep Rising
Standard Chartered says “the floor forprices has risen” in the gold market without requiring significant physicaldemand to cushion the downside. The precious metal remains range-bound -although at the lower end of the band - but price dips have not been deepenedby a soft physical market, the bank says. “We continue to expect prices to testthe downside in the lead-up to the June FOMC [Federal Open Market Committee]meeting as the market re-prices the Fed hiking trajectory and India enters itsseasonally slow period for gold consumption,” Standard says. “But beyond this,a good monsoon season forecast for India and the market adapting to thecountry’s new goods and services tax regime should support demand, and continueto provide a rising price floor for gold.”
By Allen Sykoraof Kitco News; asykora@kitco.com
Commerzbank: Gold May Yet Benefit From Iran Uncertainty
Wednesday May 9, 2018 09:38
Gold has not benefitted yet from U.S. President DonaldTrump’s decision to withdraw from the nuclear agreement with Iran, but themetal could still draw support, says Commerzbank. Analysts say the weaknessearlier Thursday was due to the U.S. dollar, which on a trade-weighted basisclimbed to a 4 1/2 -month high following Trump’s decision. “We would have expectedgold to be in demand as a safe haven and to make noticeable gains, as Trump’sdecision is likely to spark instability in the region and tensions between theU.S. and the rest of the world,” Commerzbank says. The key now will be how Iranand European countries respond, analysts continue. “They have stronglycriticized the U.S. withdrawal from the nuclear accord,” Commerzbank says. “Ifeconomic relations with Iran are suspended again nonetheless, Iran could decideto relaunch its nuclear weapons program. This latent geopolitical risk shouldlend support to the gold price, in our view.” As of 9:22 a.m. EDT, Comex June gold was 60 cents higher at $1,314.30 an ounce butearlier traded as low as $1,304.20. The June dollar index was down 0.108 pointto 92.8950 but earlier traded as high as 93.260.
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.