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American Eagle Coins Sales Picking Up in March

Thursday March 12, 2015 2:37 PM

March is only half over but demand for American Eagle gold coins from the U.S. Mint has surpassed the previous month’s sales. According to sales figures, as of Tuesday, the U.S. Mint has sold 41,000 ounces of gold from the precious American Eagle denominations, up from 37,000 ounces sold in February. This month’s sales have almost caught up to last year’s figures as 42,000 ounces were sold in March. Year-to-date the U.S, Mint has sold 240,000 ounces gold in American Eagle bullion coins, down from 287,000 ounces sold during the first three months of 2014.

By Neils Christensen of Kitco News; nchristensen@kitco.com

 

Gold Mining Equities To The Rescue – TD Securities

Thursday March 12, 2015 11:37 AM

Gold and silver bounced Thursday morning and one analyst at TD Securities says gold mining equities may have had something to do with it. “Gold mining equities ended yesterday up over 3% and perhaps aided the bounce in gold and silver overnight,” says Steve Scacalossi,  head of sales, global metals for the bank. He adds that the weaker-than-expected retail sales data Thursday morning has thrown the market off as to when the Federal Reserve will raise rates, which many perceived to be in June just yesterday. “We continue to see excellent demand from Asia and the next $20 will be highly dependent on what tomorrow’s data shows and the FOMC meeting next week,” Scacalossi says.

By Sarah Benali of Kitco News; sbenali@kitco.com

 

Natixis: Chinese Investment Demand To Be Lackluster In 2015

Thursday March 12, 2015 11:37 AM

Demand from China might not provide the same support to the market as it did in 2013, says Bernard Dahdah, precious metals analyst at Naxtixis. He notes that according to data from the China Gold Association, gold consumption in 2014 was 886.1 tonnes, down 25% compared to 2013. “For 2015, we would expect Chinese demand for gold to remain lackluster. Back in 2013, sharp movements in the market led to a frenetic increase in Chinese demand for the metal, especially from the retail side. This year our expectation is that gold prices will fall modestly, suggesting there is unlikely to be any reason for a significant pick-up in retail or investor demand from China,” he says.

By Neils Christensen of Kitco News; nchristensen@kitco.com

 

BNP Paribas Exits Euro Short Position But Remains Bearish On EUR/USD

Thursday March 12, 2015 10:37 AM

Thursday's bounce in the euro to 1.0605 against the U.S. dollar has prompted currency analysts from BNP Paribas to close out their short EUR/USD trade. "Following the weaker than expected U.S. retail sales report, EURUSD hit our aggressively trailed take-profit level of 1.0650 and we close the trade for a profit of 7%, after having entered it on 3 February at 1.1450," they say. Although they have exited their position, the analysts say they still expect the euro to weaken going forward. "U.S. rates markets have more room to adjust further heading into a September Fed hike and portfolio flow effects from ECB QE are likely to build in the weeks ahead now that purchase operations are underway," they say.

By Neils Christensen of Kitco News; nchristensen@kitco.com

 

Strong U.S. Dollar Won't Hurt Economic Recovery – Capital Economics

Thursday March 12, 2015 10:02 AM

A stronger U.S. dollar won’t stifle the current economic recovery, despite some growing concerns in the marketplace, says Julian Jessop, chief global economist at Capital Economics, adding that the fears are overblown. Although the U.S. dollar hit a 12-year high Wednesday, they note that it is still below the peaks seen in 2002, on a trade-weighted basis. “What’s more, there were similar or much larger appreciations in the first half of the 1980s and the second half of the 1990s, which were both periods when U.S. growth continued to pick up strongly,” he says. Although a strong greenback does hurt exports and corporate earnings, he adds those factors should be offset by strengthening domestic demand and lower oil prices. “The U.S. recovery is robust enough to weather a firmer currency…” he says. “All this supports our view that the stronger dollar is not going to be a decisive factor in the Fed’s thinking on the timing of the first rate hike, which we continue to expect in June. Indeed, to the extent that dollar strength reflects growing anticipation of Fed tightening, a stronger currency might simply be seen as one of the ways in which the change in monetary policy will have its desired effects.”

By Neils Christensen of Kitco News; nchristensen@kitco.com

 

BBH: U.S. Dollar Correction Won’t Last

Thursday March 12, 2015 8:02 AM

The U.S. dollar rally is weakening Thursday morning ahead of February’s retail sales numbers, which is helping gold prices find some support in the marketplace. Comex April gold futures last traded at $1,158.00 an ounce, up $7.40 on the day. However, according to Brown Brothers Harriman (BBH), although the U.S. dollar is a little overstretched in the near-term it should maintain its current uptrend. “The dollar is broadly weaker as market participants take profit ahead of U.S. retail sales today and the FOMC meeting next week.  Nothing has changed fundamentally, and so we believe many will re-establish long dollar positions at better levels,” they say.

By Neils Christensen of Kitco News; nchristensen@kitco.com

 

HSBC: Gold Demand Remains Weak But Should Improve As Prices Falls

Thursday March 12, 2015 8:02 AM

Despite lower prices, physical demand for gold remains disappointing says analysts at HSBC; however, they note that March is historically a slow period for the yellow metal and there is still opportunity for the market to pick up ahead of India’s wedding season in mid-march. “While EM buying has been relatively quiet with prices currently near [$1,150/oz], further declines may encourage price-sensitive Emerging Markets buyers to step in and support prices,” they said. “The path of least resistance appears to be lower for gold as long as the USD remains the dominant factory, in our view.”

By Neils Christensen of Kitco News; nchristensen@kitco.com

 

 

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