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Gold Won’t Stay in $1300 Territory : Gartman

Monday April 21, 2014 10:37 AM

Gold could easily be $100 higher one year from now, says Dennis Gartman, famed editor of the Gartman Letter. In the short-term, Gartman adds that gold will most likely not remain in its current $1300 territory.  “It can trade $25 to $30 dollars either side of there for a while,” says Gartman in an interview with Kitco News. “A year from now it will be $100 to $150 dollars higher - at worst it is $30 to $50 dollars lower but that is in dollar terms. I think in Yen terms it can be demonstrably higher. If you are going to own gold, own it in Yen terms … The bank of Japan has no choice but to expand the supply of reserves very aggressively.” Besides gold, Gartman says he likes “simple things” that are basic and absolutely incumbent to global economic activity. “I like coal because nobody does; coal really makes sense to me. I like aluminum a lot, and the aluminum stocks have done very well recently.”

By Daniela Cambone of Kitco News; dcambone@kitco.com


MKS: Sell Stops Push Comex Gold Lower In Overnight Trade

Monday April 21, 2014 7:56 AM

Comex gold weakened in Asia-Pacific trade overnight as two rounds of sell stops were hit, says MKS (Switzerland) SA.  In early electronic trading, gold traded heavily, triggering stops to a low of $1,290.30, MKS says. “After briefly trading at these levels, a wave of buying in June gold alongside some solid demand out of Tokyo propelled gold all the way up to and above $1,300, trading as high as $1,301.50 before edging back down towards $1,299,” MKS says. “The market was quiet ahead of the Shanghai Gold Exchange fix, but once the Chinese market opened, a conglomerate of sell orders hit the exchange simultaneously, sending gold crashing lower. The metal found some slight support around the previous lows $1,290/91, but once $1,290 was given, a tirade of stops were triggered, smashing gold a further $8 lower before any kind of support was found.” Comex June gold traded as low as $1,281.80. As of 7:44 a.m. EDT, the contract was at $1,284.80, down $9.10 for the day. Much of Europe remains on holiday for a long Easter weekend, MKs notes.

By Allen Sykora of Kitco News; asykora@kitco.com


Citi: Indonesian Ore Ban Leading To Tighter Nickel Market

Monday April 21, 2014 7:56 AM

China’s nickel ore and bauxite imports fell sharply in March as the result of Indonesia’s ore export ban, says Citi Research. “There were no shipments of either commodity exported out of Indonesia in March, with China customs data for Indonesian nickel actually representing low-nickel-content iron ore -- not used by NPI (nickel pig iron) producers -- and for Indonesian bauxite, representing similarly mis-categorized material,” Citi says. “This is causing increasing curtailments of Chinese NPI production and a tighter nickel market.” Indonesia has halted exports of unprocessed ore, wanting foreign investment to build processing facilities in Indonesia.

By Allen Sykora of Kitco News; asykora@kitco.com


Morgan Stanley: Nickel May Have 'Run Too Hard, Too Fast."

Monday April 21, 2014 7:54 AM

Morgan Stanley analysts say they like nickel for the medium- to longer-term, but worry “it has run too hard, too fast.” Prices have been strong since Indonesia began enforcing a ban on nickel ore exports. “Investors correctly assume there is no adequate replacement for these lost volumes until Indonesia builds downstream refining capacity -- the prevailing purpose behind the ban,” Morgan Stanley says. “However, global nickel inventory remains very elevated and likely needs the rest of the year to wind down. While pricing is justified, we worry about a near-term correction as the market approaches greater equilibrium.” Three-month nickel on the London Metal Exchange ran up from an early-January low of $13,334 a metric ton to as high as $18,105 last week, a three-month gain of 36%.

By Allen Sykora of Kitco News; asykora@kitco.com


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