Make Kitco Your Homepage
Market Nuggets

MKS: January Once Again A Golden Month For Gold

January has been a good month for gold over the last decade, and this year has not been an exception, says MKS (Switzerland) S.A. Comex December gold was trading up $2.90 to $1,188.40 around 8:10 a.m. EST, which was a 0.2% gain for the day but leaves the metal up 3.2% so far in 2017. “So far this month, gold has behaved in line with historical trends,” says Alex Thorndike, senior precious-metals dealer with MKS. “Over the past 10 years January has offered the best monthly average return of plus 4.4%, with only three negative Januarys over that period. With the impending inauguration of President-elect Donald Trump and possible safe-haven flows related to that, seasonal Chinese demand and a stalling equity rally and bond sell-off, January so far is poised to be another good month for the yellow metal.” He puts the area around $1198 to $1200 an ounce as the next major resistance for gold, while pegging support $1,175-80 and $1,155.

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

 

Analysts: All Eyes To Be On Trump News Conference

Wednesday January 11, 2016 08:18

Gold, like other markets, will be focused on a news conference Wednesday by U.S. President-elect Donald Trump, who will be inaugurated next week. “Greater-than-usual market sensitivity to Trump’s comments and actions may persist until the market becomes used to him in office,” says HSBC precious-metals analyst James Steel. “This could take several months. Thus gold prices may be more volatile than usual.” The topic at Trump’s first press conference since July was supposed to be how the president-elect would arrange his investments to avoid potential conflicts of interest, notes Brown Brothers Harriman. How, recent news reports of Russian meddling in the U.S. election process may be part of the focus. “And it is not like there is much U.S. data to compete with these political developments,” BBH adds, referring to the light U.S. economic calendar this week prior to jobless claims Thursday and retail sales and wholesale inflation on Friday. Alex Thorndike, senior precious-metals dealer with MKS, says he will be watching for anything Trump says that is China-related and could move the yuan and comments could affect U.S. yields, which in turn could spill over into the gold price. “Any guide to the imposition of tariffs or fiscal spending should also be closely monitored,” he adds.

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

 

Commerzbank: U.S., European Gold ETF Holdings Diverge

Wednesday January 11, 2016 08:18

Commerzbank points out there has been a divergence in gold exchange-traded-fund holdings between products in the U.S. and Europe. “Although gold ETFs as a whole saw virtually no changes yesterday, the gold ETFs tracked by Bloomberg have followed differing trends since the beginning of the year,” the bank says. “For example the U.S.-based SPDR Gold Trust – the world’s largest gold ETF, accounting for 45% of all holdings – has seen outflows of 17.2 tonnes since early January. European gold ETFs have seen inflows, on the other hand. Apart from the regional difference, the different groups of investors are also likely to have played a part in this; it is primarily institutional investors that are active in the SPDR Gold Trust, whereas retail investors predominate in Europe.”

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

 

HSBC: S&P 2017 Sovereign Credit Rating Outlook Friendly For Gold

Wednesday January 11, 2016 08:18

The sovereign credit rating outlook from ratings agency Standard & Poor’s is friendly for gold, says HSBC. Analysts cited news that S&P downgraded almost three times as many countries’ sovereign credit ratings as it upgraded in 2016. “The S&P also stated that it expects this trend to accelerate this year,” HSBC says. “This is gold-bullish. Gold is a barometer of confidence in government and the state of government finances and the financial markets in general. Of the 130 countries with a credit rating from S&P, just seven have a positive outlook, with 30 given a negative outlook. The number of negative credit ratings has increased since the 2008 financial crisis.”

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

 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
kitco news

Follow Kitco News

Precious Metal Charts