BMO: 'We Expect Portfolio Allocation Towards Gold'
BMO Capital Markets looks for investors to include some gold intheir portfolios during the remainder of 2018. Analysts note that holdings inglobal gold exchange-traded funds, which trade like a stock but track the priceof the commodity, have risen to a three-month high following recent weakness inequity markets. “With macroeconomic risk now being supplemented by concernsover systemic financial risk, we expect portfolio allocation towards gold toedge higher towards year end,” BMO says.
By Allen Sykoraof Kitco News; asykora@kitco.com
RBC’s Gero:Gold Gets Short-Covering Lift After Soft Data
Wednesday November 21, 2018 09:03
Gold isgetting a lift as traders buy to offset short, or bearish, positions ahead ofthe U.S. Thanksgiving holiday and after soft U.S. economic data, says George Gero, managing director with RBC Wealth Management.As of 8:47 a.m. EST, Comex December gold was $5.40 higher to $1,226.60 anounce. The metal was stronger overnight and got an added lift when thegovernment reported that durable-goods orders fell 4.4% last month and U.S.initial jobless claims rose by 3,000. This and the holiday mean “shorts arecovering,” Gero says.
By Allen Sykoraof Kitco News; asykora@kitco.com
BBH: Dollar Backs Off As Equities Stabilize
Wednesday November 21, 2018 09:03
The U.S. dollar has given backsome of its recent gains, consolidating after the pause in the global equitysell-off, says Brown Brothers Harriman. The dollar rose Tuesday as U.S. stockssold off sharply. “Wave after wave of risk-offsentiment had given a bid to the greenback, and we fully expect another wave tohit markets,” BBH says. “In the meantime, the euro feels heavy and is havingtrouble moving back above $1.14. The same can be said for sterling and the$1.28 area. Both currencies are being weighed down by heightenedpolitical risk. The easing of risk-off sentiment today has helped USD/JPYrecover back above 113.” As of 8:49 a.m. EST, the December dollarindex was down 0.266 point to 96.450, with futures for the Dow Jones IndustrialAverage and S&P 500 both pointing to higher opens when Wall Street opens.
By Allen SykoraFor Kitco News
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