The price of gold could reach $ 1,600 for a military intervention in Hong Kong: SP Angel

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The price of gold could rise more than 100 dollars in case of Chinese military intervention in Hong Kong, according to analysts SP Angel. "Gold prices are likely to react dramatically to events as they unfold and we estimate that gold could increase relatively quickly> $ 100 / ounce in the event of a price increase. Mass arrests or deaths, "they write. At the time of writing these lines, the December gold futures of Comex are trading at $ 1,509.40, down 0.42% on the day. Tensions remain high as protesters are still on the streets of Hong Kong and China warns of "serious consequences if they continue." China has assembled its military forces just outside of Hong Kong. "To be fair, China is warning against videos showing the army that applies riot control procedures at the border … [But, it] Another Tiananmen Square may be reversed if it sends military forces to Hong Kong, which will have profound consequences on relations with China, "said SP Angel.

By Anna Golubova of Kitco News; [email protected]

Fed Will Prepare Markets for Disappointment: TD Securities

Wednesday, August 21, 2019 08:43

As the minutes of the FOMC meeting are expected to be released on Wednesday and Federal Reserve Chairman Jerome Powell is scheduled to speak at Jackson Hole on Friday, the central bank could prepare the market for disappointment. TD Securities. "We continue to expect that an emboldened Fed will stay the course and end up disappointing the markets this week", after all, with shares still resilient and CDX IG only 10bp wider, the financial conditions only are not tightened, "TD Securities strategists write." This argument is reinforced by recent messages from several speakers, including Bullard, Evans, Daly, Rosenberg, and George. "

By Anna Golubova of Kitco News; [email protected]

FOMC minutes take on greater importance – BBH

Wednesday, August 21, 2019 08:43

The minutes of the FOMC meeting, which will be released on Wednesday, are becoming increasingly important due to the lack of Federal Reserve speakers in recent weeks, said Win Thin, global head of monetary strategy at BBH. "The July 31 meeting saw the Fed engage in what President Powell called a mid-cycle adjustment. Given the Fed's shortage of speakers since the decision, these minutes are of greater importance for determining the Fed's future rate path. Markets are also paying close attention to Neel Kashkari, chairman of the Minneapolis Fed, who is scheduled to speak on Wednesday and Thursday. But the week's main event will take place on Friday, when Fed President Jerome Powell will deliver his speech at Jackson Hole. "WIRP suggests 100% chances of a reduction on September 18th, with a 13% chance of a 50bp move," Thin adds.