TDS: Gold Break Below $1,190 Could Trigger More Selling
Gold could face further pressure if the metal falls below the$1,190-an-ounce area, says TD Securities. As of 8:12 a.m. EST, spot gold was 50cents higher at $1,200.75 an ounce but has been below $1,200 for the first timesince Oct. 11. “Messy European politics, along with a Fed which is set toremain on its tightening trajectory, have kept the dollar index above 97, whichcontinues to add to downside pressure on gold, as we expected,” TDS says.“While CTAs [Commodity Trading Advisers] have now pared back much of theirrecord-setting shorts, we suspect that a break below $1,190/oz would prompt thealgos to once again increase their short positioning as downside momentumfirms.”
By Allen Sykoraof Kitco News; asykora@kitco.com
Commerzbank: Bargain Hunting, EquityWeakness Limit Gold’s Downside
Tuesday November 13, 2018 08:30
Bargain hunting and weakness in equities,such as the sharp fall in U.S. stock market on Monday, are helping put a floorunder gold during the metal’s recent slide, says Commerzbank. The U.S. dollarindex has climbed to its highest level since the middle of 2017, which isweighing on gold prices. As of 8:15 a.m. EST, Comex December gold was $2 lowerto $1,201.50 an ounce and has been below the $1,200 level. The fact that goldhas not fallen further “is probably due to the correction on the stockmarkets yesterday, which has made gold attractive as an alternativeinvestment,” Commerzbank says. “This is also visible from the ETF[exchange-traded-fund] inflows; holdings in the gold ETFs tracked by Bloombergincreased by 5.8 tonnes yesterday. Bargain hunters are also likely to have beentaking advantage of the low prices to buy gold, which has presumably also beenlending support to the price.”
By Allen SykoraFor Kitco News
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