(Kitco) April 22nd, 2019 – Technical indicators are signalling a buy opportunity for gold on a short-term basis, said Frank Holmes, CEO of Global Investors, who recommend buying on the dip in today’s environment.
Other factors also contribute to his positive assessment of the yellow metal, including strong PMI data from China, which could signal good jewelry demand, as well as Venezuela’s gold dump worth around $400 million.
“On a daily basis, in the past couple of days, it’s a very attractive buy, you’ve got to buy when these countries are finally liquidating their assets before there’s a change in government, and that’s positive for the gold market,” Holmes told Kitco News. (show less)

Gold And Silver To Test Lows Before Their Next Rally

Gold and silver prices are down in midday U.S. trading Tuesday and fell to four-month lows. Gold prices have moved well off their daily lows, however. A solid rally in the U.S. dollar index today and more gains in the U.S. stock market that have the indexes at or near record highs, are the main bearish elements working against the precious metals markets recently. The safe-haven metals continue to be hamstrung by not much risk aversion in the world marketplace at present. June gold futures were last down $2.90 an ounce at $1,274.50. May Comex silver was last down $0.195 at $14.78 an ounce.

With no major geopolitical hotspots in play at present, focus of traders and investors is on corporate earnings reports. U.S. earnings have been generally upbeat so far.

Rising oil prices that saw Nymex crude push above $66.00 a barrel and to a six-month high today, with Brent crude above $74.00, are getting some more attention in the marketplace. More gains in crude oil would likely prompt some keener concerns about problematic inflation, as well as economic growth concerns. Oil’s surge this week is mainly due to the U.S. not renewing waivers it had given to some countries on sanctioned Iranian crude oil imports. And with oil being arguably the leader of the raw commodity sector, crude’s rally should at least be limiting selling interest in the metals.

The other key outside market today finds the U.S. dollar index solidly up and not far below the for-the-move highs scored a few months ago. The strong greenback makes metals that are priced in U.S. dollars on the world market more expensive to purchase in non-U.S. currency.

postedby :

Jack Dempsey , President

401 Gold Consultants LLC

jdemp2003@gmail.com