TDS Sees Gold Consolidating Before Moving Higher
Gold is likely to consolidate in the near term even though themetal may be headed toward $1,400 an ounce yet this year, says TD Securities.For one thing, forex and gold traders want to see what Federal Reservepolicymakers say at their meeting this week before becoming too aggressive. “It is likely that with the Fed signaling a March hike, there willbe many market participants choosing to take profits should the Fed turn morehawkish than expected,” TDS says. “After hitting our published trading targetof $1,357/oz last week, no one should be surprised to hear us say that we arecomfortable in saying, that after a month and a half of a virtually uninterruptedmove higher, the yellow metal is likely headed for a consolidation-of-gainsphase. A correction back towards $1,320 should not be a shock to most keenobservers of the yellow metal. Still, underlying demand remains firm, withspecs having room to grow. Continued U.S. weakness into 2018 along with onlymodest Fed tightening could well see prices break through the upper bound near$1,380/oz and head firmly into the $1,400/oz.”
By Allen Sykoraof Kitco News; asykora@kitco.com
RBC’s Gero:Equity-Market Weakness Prompts Hedge Buying Of Gold
Tuesday January 30, 2018 09:06
Some tradersmay be turning to gold as a hedge against weakness in the stock market, says George Gero, managingdirector with RBC Wealth Management. Gold is modestly stronger in early trading with Wall Streetfutures signaling a weaker open for the stock market. As of 8:47 a.m. EST,Comex April gold was $3.10 higher to $1,348.20 an ounce. “Weaker holders left gold yesterday as open interest is loweragain,” Gero says, but later adding that some bids are occurring in the goldmarket “as lower stocks continue in reaction to a tough week ahead” withtraders watching to see if the Federal Reserve signals a more hawkish tone whena meeting wraps up this week.
By Allen Sykoraof Kitco News; asykora@kitco.com
INTLFCStone: Precious Metals Hold Up As Dollar Gives Back Gains
Tuesday January 30, 2018 09:06
The U.S. dollar, which started the week on a strong note, is easing, with preciousmetals among the beneficiaries, says INTL FCStone. “Right now, we are seeingthe dollar rally peter out slightly, as both the euro and sterling haverecovered from yesterday's worst levels,” the firm says. Around 8:30 a.m. EST,the euro was up to $1.24324 from $1.23816 late Monday. “The precious metalsgroup, which lost substantial ground yesterday in the wake of the dollar rally,is holding up fairly well,” INTL FCStone continues. Spot gold was up $4.55 to$1,344.50 an ounce, while silver was up 10.8 cents to $17.253.
By Allen Sykoraof Kitco News; asykora@kitco.com
FXTM: Gold Posture Bullish On Daily,Weekly Charts
Tuesday January 30, 2018 09:06
Gold remains constructive on thetechnical charts, with the metal drawing inspiration from dollar weakness sofar Tuesday, says LukmanOtunuga, research analyst at FXTM. “Focusing purely on the technicalpicture, the yellow metal remains bullish on the daily and weekly charts,” theanalyst says. “There is a suspicion that a new higher low could be created aroundthe $1,335 level and such could provide a platform for bulls to push priceshigher towards $1,360. Alternatively, a breakdown below $1,335 could encouragedecline back to $1,324.15.” Around 8:30 a.m. EST, spot metal was up $4.55 to$1,344.50.
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.