Renewed 50bp Fed Rate Cut Debate Supports Gold — TD Securities

Tuesday August 6, 2019 08:56

The gold market has room to keep climbing in the next month as Federal Reserve’s easing expectations support the yellow metal, according to TD Securities (TDS). “Market expectations that the Fed may have received a green light to start an easing cycle, as opposed to a few ‘mid-cycle cuts’ as suggested by Chair Powell, are growing and supporting the precious metals complex,” the strategists at TD Securities write. The renewed debate over a possible 50-basis-point cut in September is also getting a lot of attention. “Expectations that the U.S. Central bank could cut rates as much as 50bp in September in order to combat the trade war could still grow with market pricing in less than a 30% probability of a 50bp cut at time of writing,” TDS states. “Gold could still have room to shine considering its convexity related to its zero-coupon nature and uber-long duration.”

By Anna Golubova of Kitco News; agolubova@kitco.com

Gold To Push Higher Based On ‘Constructive Chart Patterns’: INTL FCStone

Tuesday August 6, 2019 08:40

Despite trading flat this morning, gold prices are still likely to push higher based on “constructive chart patterns,” writes INTL FCStone independent consultant Edward Meir. The trade war will also continue to support risk-off environment in the markets. “The state of relations between the [U.S. and China] in our view is at its worst since the trade war began,” says Meir. “After a tumultuous day yesterday, things hardly improved even after the markets closed in the US, as that was when the US Treasury formally took steps to officially brand China a currency manipulator.”

Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com