SP Angel: Russia Hikes Gold Holdings Amid U.S. Sanctions
Russia hasincreased its official-sector holdings of gold at a time when the U.S. isincreasing economic sanctions on the country, says commodity brokerage SPAngel. “Russia increased gold reserves the most in July than any other monththis year amid a potential new round of U.S. sanctions,” the firm says.Analysts cited news reports saying that Russia’s central bank bought 26.1tonnes last month to take its holdings to 2,170 tonnes as Russia diversifiesits holdings away from the dollar. “In April and May, Russia cut its holdingsof U.S. bills, notes and bonds by around four-fifths and bought more gold,” SPAngel says.
By Allen Sykoraof Kitco News; asykora@kitco.com
RBC’s Gero: BargainHunting, Soft U.S. Dollar Lift Comex Gold
Wednesday August 22, 2018 09:02
Gold futures are higher,helped by bargain hunting amid a combination of U.S. political worries andgeopolitical concerns, along with a softer U.S. dollar, says George Gero,managing director with RBC Wealth Management. Still, he says, traders feel somecaution ahead of a scheduled speaking appearance Friday by Federal ReserveChair Jerome Powell. Traders are trying to gauge whether to expect one or twomore U.S. rate hikes this year. Gero notes that factors such as Venezueladevaluing its currency, Greece coming out of a bailout and Argentinadrastically raising rates to shore up its currency “adds to gold being rediscovered by bargain hunters.” As of 8:39 a.m. EDT, Comex December goldwas $7.70 higher to $1,207.70 an ounce. The September U.S. dollar index wasdown 0.265 point to 94.885.
By Allen Sykoraof Kitco News; asykora@kitco.com
FXTM’sOtunuga: Gold Helped By Soft Dollar But Trends May Not Last
Wednesday August 22, 2018 09:02
Gold hasstaged a recovery lately in response to U.S. dollar weakness, but this may onlybe a temporary phenomenon, says Lukman Otunuga, research analyst at FXTM. “Gold bulls were offeredample support in the form of dollar weakness this week,” the analyst says. TheSeptember dollar index fell to a low of 94.850 early Wednesday after trading ashigh as 96.685 one week ago. Conversely, spot gold has nudged back above $1,200an ounce after a bottom of $1,160.75 last week. “Although prices have staged asolid rebound from the $1,160 yearly low, the outlook remains tilted to thedownside,” Otunuga says. “With the dollar poised to recover on heightened U.S.rate-hike expectations and safe-haven demand, gold remains vulnerable todownside losses.” Technically, the analyst says, a “solid break” above $1,200could mean gold climbs to the $1,216 or $1,230 levels. However, if the metalcannot hold the $1,200 area, prices could sink back to $1,180, Otunugaconcludes.
By Allen SykoraFor Kitco News
Follow @AllenSykora
asykora@kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.