Tuesday, 19 June 2018
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--

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
Wall. St., Main St. See Higher Gold Prices...
Monday, 18 June 2018 17:03 WIB

Wall Street dan Main Street keduanya melihat harga emas untuk naik minggu ini, berdasarkan survei mingguan Kitco News. Logam ini berada dalam rentang perdagangan terbatas untuk sebagian besar pekan l...

Wall St., Main St. See Gold Price Rising During FOMC Week...
Monday, 11 June 2018 11:11 WIB

Wall Street dan Main Street sama-sama melihat harga emas untuk naik minggu ini meskipun Komite Pasar Terbuka Federal secara luas diperkirakan akan menaikkan suku bunga AS lagi, berdasarkan survei ming...

Gold To Do Better In June As Dollar Rally Stalls - INTL FCStone...
Tuesday, 5 June 2018 05:12 WIB

Emas akan memiliki bulan yang lebih baik pada bulan Juni menyusul penurunan ke bawah level psikologis kunci $ 1.300 per ounce pada bulan Mei, kata IntL FCStone, menambahkan bahwa rally dolar AS akan k...

Price Bounce Expected To Continue...
Tuesday, 29 May 2018 05:14 WIB

Wall Street dan Main Street keduanya melihat emas untuk melanjutkan pemulihan harga minggu ini, berdasarkan survei emas mingguan Kitco News. Emas naik kembali level $ 1.300-an-ons selama bagian akhir...

Wall, Main St. Bullish On Gold Prices...
Monday, 14 May 2018 16:17 WIB

Wall Street dan Main Street keduanya sangat bullish pada arah jangka pendek harga emas, berdasarkan survei emas mingguan Kitco News. Para pedagang dan analis yang ambil bagian dalam jajak pendapat Wa...

LATEST NEWS
Gold Steady as Traders Weigh Trade Spat, Dollar Rally

Gold holds steady above this year's low as traders weigh global trade concerns and a stronger dollar. Bullion for immediate delivery added 0.1% at $1,279.64/oz in London. This metal trades little changed for a 2nd day. On Friday,...

Dow futures slump more than 300 points as fears of a U.S.-China trade war ratchet up

U.S. stock futures fell sharply on Tuesday, as global equities careened lower on a fresh threat by President Donald Trump to slap up to $400 billion more in tariffs on China goods, the latest escalation in a worrying trade dispute. Dow Jones...

Dollar falls vs. yen after U.S. threatens further tariffs on China

The dollar fell against the Japanese yen and Swiss franc on Tuesday after U.S. President Donald Trump's threats of more tariffs on China heightened fears that an escalating trade dispute could damage global growth. Hostility over trade between the...

POPULAR NEWS
Gold Notches Modest Bounce From Lowest Close of 2018
Tuesday, 19 June 2018 01:31 WIB

Gold futures notched a modest gain on Monday, after a drop late last week that took the commodity to the lowest close of 2018, as trade tensions...

Gold Steadies After Drop on Interest Rate Divergence
Monday, 18 June 2018 09:25 WIB

Gold steadies, after tumbling Friday on divergence in interest rate outlook in major economies. Bullion for immediate delivery +0.2%...

Wall. St., Main St. See Higher Gold Prices
Monday, 18 June 2018 17:03 WIB

Wall Street and Main Street both look for gold prices to rise this week, based on the Kitco News weekly survey. The metal was range-bound for much...

The International Classification of Diseases was last revised 28 years ago.
Tuesday, 19 June 2018 09:11 WIB

Changes, which have occurred since then are reflected in this edition. Gaming disorder has been added to the section on mental and addictive...