Financial Sector Update for 05/04/2017: .DJI, .SPX, .IXIC

RBC said it believes current prices represent a "good entry point for risk overlays" in gold. "The weakness we were looking for in gold has materialized and we do think that current prices represent a good entry point for risk overlay trades," analysts at the bank said. "Negative sentiment was not helped today by the weak headline demand trend in the quarterly Gold Demand Trends report from the World Gold Council. However, we note that the notional demand number was in line with the longer-term quarterly average"

The WGC reported ETF inflows were strong in much of Europe with 50 tons in Germany and almost 40 tons in the UK given political uncertainty. Chinese investment demand also was strong. Still, gold demand fell 18% year-over-year in the first quarter. Despite that, notional demand was average historically and price weakness likely will be limited, RBC said.

Street Color news alerts are derived from real time conversations with market professionals via the Ask Alyce - Chat Intel service on Bloomberg & Symphony.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.