RBC's Gero: Gold Eases As FOMC Meeting Begins
Gold is on the defensive as traders await the outcomeof a two-day meeting of the Federal Open Market Committee that is expected toresult in a 25-basis-point U.S. interest-rate hike, says George Gero, managingdirector with RBC Wealth Management. As of 10:01 a.m. EDT, ComexApril gold was down $9.10to $1,308.70 an ounce. “Gold sellers return as Fed meeting [begins] and ratehike is apparently the reason for pullback,” Gero says. “This is a snapbackdollar result, waiting for results of the Fed notes and expected hikes, whichcould now be four not three [for 2018].” The euro was down to $1.22706 from$1.23340 late Monday.
By Allen Sykoraof Kitco News; asykora@kitco.com
Commerzbank:66 Tonnes Of Feb. Swiss Gold Imports Go To China
Tuesday March 20, 2018 10:07
Commerzbank reports that 45% of the gold exported out ofSwitzerland last month went to China. Analysts cite data from the Swiss FederalCustoms Administration showing that Switzerland exported 146 tonnes of goldlast month, with 113 going to China, Hong Kong and India. “Sixty-six tons wereexported directly to China, the largest quantity since December 2016,”Commerzbank says. “A lot of gold was already exported to China in January,presumably because of the Chinese New Year’s festival. At just shy of 28tonnes, gold exports to India in February were almost twice as high as inJanuary, but well below last February’s level. The data tally with the weakerfigures already released by the Indian Ministry of Finance.”
By Allen Sykoraof Kitco News; asykora@kitco.com
MKS: Chart Support, Net Positioning Could Underpin Gold
Tuesday March 20, 2018 10:07
Gold sits around key chart support at a time when bullishspeculative positioning has declined, which may help the metal stem furtherlosses for now, says Sam Laughlin, senior trader with MKS (Switzerland) S.A.“Gold net-long positioning [in Commodity Futures Trading Commission data] haslightened in recent weeks to now sits toward the lowest level this year, whichshould provide room for further top-side gains over the near term,” the tradersays. As of 9:59 a.m. EDT, spot gold was $7.35 lower to $1,309.35 an ounce. “Aswe head toward Wednesday's FOMC [Federal Open Market Committee] rate decision,bullion has managed to edge away from the early March low of $1,303 and the 100DMA [100-day moving average] of $1,305; however, both continue to act as strongsupportive levels should the greenback see interest dependent uponinterest-rate rhetoric that comes out of the FOMC.”
By Allen SykoraFor Kitco News
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