FUNDAMENTAL ANALYSIS
for the short-term, the managing director sees a bright future for gold. “God has been so focused on short-term headlines that it is no longer the same gold we are used to seeing,” Gero said. “For now
we will
stay in this $1,275-$1,325 range. But, I’m looking at $1,315 [and higher] for the year-end.”
Global risk
appetite plays a big role in limiting any Brexit fallout, TD Securities head of global s t r ate g y Bart
Melek
pointed out. “I don’t think the market is
focused
very much on Brexit’s situation. Right now, we are looking at a fairly elevated dollar, we are looking at risk appetite that emerged following pretty significant PMI numbers out of China, a big rally in WTI as well,” Melek said. “At this stage, it is unlikely that anything the market is looking at right now is capable of upsetting global risk
appetite.”
Another thing to keep a close eye on in case of a hard Brexit is the U.K.’s 10-year government bond yield, added U.S. Global
FX
meaning the 10-year yield is really in negative territory. Historically, negative rates have been very constructive for gold prices,” Holmes pointed out.
U.K. Prime M i n i s t e r Theresa May’s Brexit deal was rejected for the third time by British lawmakers
on
Friday, despite May’s offer to resign if the deal was approved. In the meantime, B r i t a i n ’ s deadline to depart
Investors are seeking a safe haven during this
time of remarkable uncertainty
Investors CEO Frank Holmes. “The yield recently fell below 1% for the first time since September 2017, an indication that investors are seeking a safe haven during this time of remarkable geopolitical uncertainty. Also, consider real rates. U.K. inf lation rose 1.9 percent annual in February,
geopolitical
EU has been delayed
the to
April 12 unless another option is found. Right now, are
as unclear
as ever, with British lawmakers voting on Monday on various options ranging from much closer ties to the EU, such as staying in the EU’s single market, to holding a new referendum.
Anna Golubova
Financial Reporter Kitco
FX TRADER MAGAZINE April - June 2019 43 things
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61
