MKS Cites 'Robust' Physical Demand For Gold In Asian Trading
Gold is attracting "robust" physical buying in Asia, helping prices bounce modestly overnight, says MKS (Switzerland) S.A. As of 7:38 a.m. EDT, spot metal was $2.55 higher to $1,176.45 an ounce. "Gold saw relatively muted price action during Asian trade today, finding respite amid a weaker greenback to hold support around $1,172, with Asian physical demand continuing to remain robust," MKS says. "Early-session offers, much the same as on Thursday, saw the yellow metal initially lower in Tokyo, breaking underneath the New York closing level to touch a $1,172 session low. The weakness was however short-lived as the metal attracted bids toward the support level, sharply reversing declines into the Shanghai open to test a break toward $1,180. Interest out of China saw the on-shore premium hold around $5 to keep bullion buoyant above $1,175, while the greenback tracked sideways after early-session weakness to underpin pricing above $1,175 leading into European hours." By Allen Sykora of Kitco News; asykora@kitco.comFXTM: Gold Headed For Biggest Weekly Loss In A YearFriday August 17, 2018 07:52Despite a modest uptick early Friday, gold prices were on track for their largest weekly decline since mid-2017, says Lukman Otunuga, research analyst at FXTM. "It is becoming increasingly clear that the yellow metal has struggled to maintain its safe-haven allure, with investors rushing to the dollar instead in these times of uncertainty," Otunuga says. "With the greenback heavily supported by U.S. rate-hike expectations and safe-haven demand, gold is likely to witness further losses moving forward." Gold's technical-chart picture remains bearish, the analyst continues. "A breakdown below $1,171 could invite a decline back towards $1,160. A technical rebound back towards the psychological $1,200 remains a possibility if bulls are able to push prices back above $1,180."By Allen Sykora
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