These 3 Drivers Will Support Gold In The Short-Term - ING
Tuesday, 22 May 2018 05:01 WIB | GOLD CORNER |Gold OutlookGold Corner

Even as gold continues to trade below $1,300, the œfundamental case for holding the yellow metal remains intact, said Dutch bank ING, listing three main drivers that will provide support to prices.

œWe look to physical demand, geopolitics, and inflation to provide support, ING commodities strategist Oliver Nugent said in a note published on Friday.

Gold prices closed the week below $1,300 an ounce for the first time this year, after posting the largest weekly decline since December 2017. The biggest drop was on Tuesday when the precious metal plunged more than 2%.

As Asian markets opened on Monday, spot gold on Kitco.com was trading at $1,290, down 0.12% on the day, while June Comex gold futures were last at $1,290.10, down 0.09% on the day.

ING said it doesn™t expect to see gold prices fall much further, but does project for the next couple of months to be dull before any significant rebound is seen.

œThings shouldn™t get much worse, but it will take time before we see improvement, Nugent said. œWe expect longer-term holders/consumers to build a floor for the yellow metal even if it remains shunned by active money managers hunting for more attractive near-term returns.

One of the signs that gold will hold its ground is ETF holdings, which increased to the highest level since 2013 and are showing little sign of liquidation after a drop in prices, Nugent added.

Another key aspect is ING™s forecast that the U.S. dollar is likely to reverse its rally later in the year, pressured down by uncertainties in the U.S.

œWe look to the flattening yield curve and burgeoning twin trade deficits against the looming catalyst of mid-year elections or nearer term trade spats that could highlight the US policy/political uncertainties and spell a reversal for the greenback, Nugent said. œAs the dollar eases, it will be game back on for our bullish gold view, given our expectations for inflation to pick up substantially this year.

Physical gold demand will also play a key role in boosting gold prices, according to ING.

œWe are under no illusion that rates and currencies direct gold above everything else, but the impact of a tightening physical market will play an increasing role to cushion these lows, noted Nugent.

Lackluster physical demand in the first quarter of the year was likely a temporary letdown, the strategist pointed out.

œThe World Gold Council estimated a 7% YoY decline for Q1 demand which was a decade low and led very much by the 12% collapse in India. However, as the WGC point out, Q1 Indian demand was temporarily hit by the fewer auspicious days in the quarter (days deemed lucky for weddings). There were only seven such auspicious days in Q1 compared to 33 for the rest of the year.

On top of that, there are some geopolitical issues that could come back and add support to gold prices, including North Korea negotiations and the EU-US trade standoff, Nugent added.

Source: Kitco News

RELATED NEWS

MKS: Gold Support Around $1,210-$1,220 Should Restrict Declines
Tuesday, 23 October 2018 06:15 WIB

Spot emas tetap di atas support grafik yang dimulai di sekitar $ 1.220 per ounce, kata MKS (Swiss) SA "Kekhawatiran perdagangan antara AS dan China tetap tinggi dan ketegangan AS-Saudi yang sedang berlangsung kemungkinan akan terus mendukung nada tawaran untuk emas dalam jangka pendek, "kata MKS. "...

Gold Rally Rolls On
Tuesday, 16 October 2018 04:14 WIB

Pada hari Jumat kami mengajukan pertanyaan - bisakah rally emas berlanjut? Pasar telah berbicara dengan kata ya. Emas diperdagangkan di level setinggi $ 1,237 pagi ini. Tingkat kunci berikutnya untuk dicermati adalah $ 1.240. Penembusan ke atas $ 1.275 mulai terlihat. Yang paling penting untuk dii...

What Would Trigger A "Tremendous Bull Rally" In Gold?
Monday, 8 October 2018 20:56 WIB

Emas kan menghadapi tantangan dalam waktu dekat, tetapi beberapa tahun ke depan, pengetatan yang berlebihan oleh Fed dapat mengirim ekonomi ke dalam resesi dan mendorong harga emas naik secara substansial, menurut Erik Norland, Direktur Eksekutif dan Ekonom Senior CME Group. "Kami melihat ekspansi ...

TDS Looks For $1,300/Oz Gold Prices By End Of 2019
Tuesday, 2 October 2018 21:22 WIB

Harga emas mungkin tetap di bawah tekanan dalam waktu dekat tetapi kemungkinan akan rally pada akhir tahun dan 2019 dengan bantuan pelemahan dolar AS pada akhirnya dan banyak faktor lainnya, kata TD Securities. "Kami memperkirakan logam kuning untuk berada rata-rata di level $ 1.225 / oz dalam tiga...

Gold Expected To Gain Some Luster After Fed
Monday, 24 September 2018 11:35 WIB

Wall Street dan Main Street keduanya melihat harga emas untuk naik minggu ini, berdasarkan survei emas mingguan Kitco News. Rapat Komite Pasar Terbuka Federal AS diperkirakan akan menaikkan sebesar suku bunga 25 basis poin minggu ini. Tapi itu tidak menghalangi analis, yang melihat kenaikan suku bu...

ANOTHER NEWS
Gold Steady, Palladium Nears Record as Dollar Gains
Tuesday, 23 October 2018 10:49 WIB Gold was steady as the dollar traded around the highest level in two months amid continuing tensions between the U.S. and Saudi Arabia over the killing of a prominent critic of the kingdom. Palladium traded near a record high, as the...

DISCLAIMER

Seluruh materi atau konten yang tersaji di dalam website ini hanya bersifat informatif saja, dan tidak dimaksudkan sebagai pegangan serta keputusan dalam investasi atau jenis transaksi lainnya. Kami tidak bertanggung jawab atas segala akibat yang timbul dari penyajian konten tersebut. Semua pihak yang mengunjungi website ini harus membaca Terms of Service (Syarat dan Ketentuan Layanan) terlebih dahulu dan dihimbau untuk melakukan analisis secara independen serta memperoleh saran dari para ahli dibidangnya.