MKS's Nabavi: Strong U.S. Dollar Still Pressuring Gold
Gold is on thedefensive early Friday on continued U.S. dollar strength, says AfshinNabavi, head of trading at MKS (Switzerland) SA. Around 8:10 a.m. EDT, Comex August gold was $8.60 lower to $1,238 an ounce. The spotdollar index was up 0.29 point to 95.09. “It looks like the dollar is theking for the time being,” Nabavi says. “It’s put a lot of pressure on themetals.”
By Allen Sykoraof Kitco News; asykora@kitco.com
Commerzbank:19 Tonnes Of Gold Move Out Of ETFs So Far In July
Friday July 13, 2018 08:30
Gold outflows from global exchange-traded fundshave totaled 19 tonnes so far in July, reports Commerzbank. “Gold remainscompletely imperturbable. Or to put it another way - no matter what happens,the gold price does not rise to any significant extent,” analysts say,expressing surprise that gold has not been able to rally despite comments fromU.S. President Donald Trump at the NATO summit and negative U.S. interestrates. “Since the end of June, speculative financial investors have beenbetting for the most part on falling prices and ETF investors are continuing tojettison their holdings,” Commerzbank says. “Yesterday saw ETF outflows of 5.7tonnes, making for a total of 19 tonnes since the start of the month. Why goldis not profiting from the current turmoil is something that puzzles us more andmore each day. We believe the gold price to be undervalued and expect anoticeable recovery in the second half of the year.”
By Allen Sykoraof Kitco News; asykora@kitco.com
FXTM’s Otunuga: Gold ‘Still Losing ItsSafe-Haven Allure’
Friday July 13, 2018 08:30
Gold, which has been “pummeled” by abroadly stronger U.S. dollar so far this week, remains on the defensive, says Lukman Otunuga, research analyst at FXTM. “The bearish price action witnessed inrecent weeks despite the growing risk aversion continues to suggest that goldis still losing its safe-haven allure,” the analyst says. “Bulls have simplyfailed to garner any support from global trade concerns and this continues tobe reflected in prices. With an appreciating dollar and expectations of higherU.S. interest rates eroding appetite for the metal, the outlook remains tiltedto the downside.” Technically, a “solid breakdown below $1,240 could encouragea decline towards $1,236 and $1,230, respectively,” Otunuga concludes. As of8:23 a.m. EDT, spot gold was $9.20 lower to $1,237.70.
By Allen SykoraFor Kitco News
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