FXTM: U.S. Dollar Weakness May Mean More Shine In Gold Prices
Gold has edged modestly higher again early Tuesday inresponse to currency-market movements, and the yellow metal may have moreupside in store, assuming the U.S. dollar continues to cooperate, says Lukman Otunuga, research analyst at FXTM. Gold tendsto move inversely to the greenback. Shortly before 8:30 a.m. EDT, spot gold was $1higher at $1,211.80 an ounce. “Gold prices edged to a fresh two-week high onTuesday thanks mostly to a depreciating U.S. dollar,” Otunuga says. “The factthat the yellow metal continues to appreciate despite global risk sentimentboosted by the U.S.-Mexico trade breakthrough just further highlights how goldremains heavily influenced by the dollar. With the greenback likely toexperience further weakness following [Federal Reserve Chair Jerome] Powell’sdovish speech at the Jackson Hole symposium, gold has scope to appreciatefurther.”
By Allen Sykoraof Kitco News; asykora@kitco.com
Commerzbank: China's Gold Demand 'Subdued' During July
Tuesday August 28, 2018 08:42
Tradedata, released at the start of the week by the Census and Statistics Departmentof the Hong Kong government, confirms that gold demand in China remains“subdued,” says Commerzbank. The report shows that China imported only 44.8tonnes of gold, on a net basis, from Hong Kong in July - significantly lessthan either the prior month or July of 2018. The year-on-year shortfall sincethe start of the year has widened again to 19% or 87 tonnes. “The Swiss goldtrading data published last week had already indicated weak Chinese golddemand,” Commerzbank says.
By Allen Sykoraof Kitco News; asykora@kitco.com
MKS: Gold Faces Resistance From $1,215 To $1,220
Tuesday August 28, 2018 08:42
A $5 range, starting at$1,215 an ounce, provides a technical-chart resistance level for gold, says MKS(Switzerland) S.A. Analysts report an uptick in prices during Asia-Pacifictrade on U.S. dollar weakness, although the Shanghai gold premium dipped toward$4. “Bullion will need to break through the $1,215-$1,220 resistance level totest the recent build-up in short positioning, with a squeeze likely to targetresistance around $1,240,” MKS says. Shortlybefore 8:30 a.m. EDT, spot gold was 90 cents higher at $1,211.70 an ounce.
By Allen SykoraFor Kitco News
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