RBC's Gero: Gold Weaker After Fed Hints 'More Hikes On Tap'
Gold futures are on the defensive the day afterthe Federal Reserve hiked U.S. interest rates and hinted that more monetarytightening is on the way, says GeorgeGero, managing director with RBC Wealth Management. As of 8:49 a.m. EDT, Comex December gold was $7.20 lower to $1,191.90 anounce. “Gold sellers [are] still around after rate hike and Fed cautionary tonefor more hikes on tap,” Gero says. The December gold contract has been as lowas $1,191, its weakest level since Aug. 24.
By Allen Sykoraof Kitco News; asykora@kitco.com
BBH: U.S. Dollar Stronger In Wake Of FOMC Meeting
Thursday September 27, 2018 09:06
The U.S. dollar is stronger after the Federal Reserve hiked interestrates by another 25 basis points on Wednesday and was clear that moretightening is to come, says Brown Brothers Harriman. This has ramifications forprecious metals since they tend to move inversely to the U.S. dollar. The eurohas fallen below $1.17 after trading around $1.17378 late Wednesday. “A break below $1.1635is needed to set up a test of the September low near $1.1525,” says BBH. “The Fed is sticking with its preferred ratepath of one more hike in 2018, three in 2019, and one in 2020. The Fedhas stronger conviction with regards to that last hike this year, however, with12 officials now seeing it versus eight in June.”
By Allen Sykoraof Kitco News; asykora@kitco.com
Commerzbank: Gold Rises In Euro Terms Due To Italian BudgetWrangling
Thursday September 27, 2018 09:06
Gold has risen in euro terms as European markets focus onItalian budget uncertainty, says Commerzbank. There is a dispute over the levelof the budget deficit. “The two governing parties, the League and the Five StarMovement, are apparently keen to stipulate a significantly higher budgetdeficit of 2.4% than the non-partisan economics minister is willing to accept,”Commerzbank says. “Media reports claiming that the economics minister wouldthen consider resigning have since been denied. Nonetheless, the politicaluncertainty in Italy is putting pressure on the euro this morning and haspushed the gold price in euros to over ?,?1,020 per troy ounce.” Gold has since pulled back slightly to?,?1,016.22, but gold in euro terms remains modestly higher on a day when theprecious metal has fallen in most other currencies.
By Allen SykoraFor Kitco News
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