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Standard Chartered: Electric Cars Won’t Take Away PGM Demand For Years

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Standard Chartered does not look for battery-powered vehicles to detract from demand for platinum group metals for at least the next eight years. Electric vehicles have become a “hot topic” in the PGM markets, the bank says. A rapid expansion in the use of electric cars presumably would mean less demand for PGMs, used in catalytic converters to scrub emissions from exhaust. “While we do forecast the diesel market to continue to lose its market share, we do not expect pure battery electric vehicles to assume a large percentage share before 2025,” Standard Chartered says. “Therefore PGM demand should remain robust.” The bank looks for platinum prices to average $990 an ounce in the fourth quarter and palladium to average $910.

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

 

TD Securities: Gold Unlikely To Retreat Much Further

Tuesday September 12, 2017 08:15

While gold has fallen back from longtime highs last week, TD Securities looks for future losses to be limited. Analysts blame the price decline on easing geopolitical tensions surrounding North Korea and a U.S. debt-ceiling agreement that keeps funding the government until Dec. 8. “But it is unlikely the yellow metal continues to retreat much further with U.N. sanctions set to anger the North Koreans and the impact of hurricanes Harvey, Irma and potentially Jose set to weigh on U.S. economic data over the next couple of months,” TDS says. Depressed data as a result of the hurricanes is likely to keep investors doubtful of a December rate hike by the Federal Reserve, TDS says. “Furthermore, the postponement of the debt-ceiling argument until Dec. 8th could also be seen as adding further doubts to a potential hike that has already been questioned heavily over the past several weeks,” TDS says. “The decreasing likelihood that Congress passes tax legislation this year reinforces this view. We expect the continued Fed uncertainty, along with the inevitable return of North Korea worries, will keep prices near the $1,350/oz mark with potential for temporary geopolitically induced moves toward $1,375/oz in the cards.”

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

 

Commerzbank: Gold ETF Holdings Rise; Specs Take Profits

Tuesday September 12, 2017 08:15

The recent price slide in gold is likely profit-taking by speculators in the futures markets, since investors are still moving into exchange-traded funds, says Commerzbank. ETFs trade like a stock but track the price of the commodity, with metal put into storage to back the shares. “The continuing inflows into gold ETFs are proof that investors still feel some need for security….Holdings in the gold ETFs tracked by Bloomberg were increased by a further 1.6 tonnes yesterday, meaning that ETFs have now seen inflows of almost 30 tonnes since the beginning of the month,” Commerzbank says. Nevertheless, spot gold was at $1,326.40 as of 8:07 a.m. EDT, down more than $30 from Friday’s peak of $1,357.50. “We believe that the price correction since yesterday morning is due in part to profit-taking by speculative financial investors,” Commerzbank says. “They had previously expanded their net-long position for the eighth week running to [approximately] 237,200 contracts in the week to 5 September, during which time the gold price had surged by 10%.”

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.

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