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INTL FCStone: Trump Stance Supportive For Gold Prices

Kitco News

The views expressed by U.S. President Donald Trump Tuesday are likely to keep offering some support for gold and silver, says Edward Meir, commodities consultant with INTL FCStone. As of 9:12 a.m. EDT, Comex December gold was up $5 to $1,315.60 an ounce, while December silver was up 5.6 cents to $17.335. “A weaker dollar seems to be helping gold and silver in the aftermath of President Trump's somewhat unusual speech yesterday at the U.N. General Assembly, whereby he put North Korea on notice that the country would be ‘destroyed’ should its leader threaten the U.S. or its allies,” Meir says. “He also belittled the Iranian nuclear deal, diminishing its prospects for survival going forward. Both variables, we suspect, should provide an underlying level of support for gold, as well as the yen.”

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

 

MKS: Gold Prices Rise While Awaiting FOMC Outcome; Support Holds

Wednesday September 20, 2017 08:27

Gold has been underpinned by renewed geopolitical tensions during the last 24 hours and the market now turns its attention to the conclusion of a meeting of the U.S. Federal Open Market Committee on Wednesday afternoon, says Sam Laughlin, senior precious-metals trader with MKS (Switzerland) S.A. Around 8 a.m. EDT, spot gold was up $3.75 to $1,314.40 an ounce. "After once again seeing solid underlying interest above $1,300 on Tuesday, bullion pushed modestly higher during Asian trade today as participants positioned (or un-positioned) themselves into the upcoming FOMC announcement," Laughlin says. "A softer USD [U.S. dollar] during late New York trade [Tuesday] saw gold bounce off the recent $1,305-$1,310 support level, closing toward the session high print to decouple somewhat from rising UST [U.S. Treasury] yields following President Trump's tough rhetoric toward North Korea at the U.S. General Assembly." Buying interest in gold emerged around $1,310 during Asian trading overnight, he says. “Expectations are that bullion will hold the recent $1,305-$1,315 range leading into today's FOMC announcement, with the broader market searching for details regarding the Fed's balance-sheet normalization in addition to the timing of interest-rate increases….The key for the yellow metal is still the $1,300 support level and should [Fed Chair] Janet Yellen stick to the expected script today, we should see the figure hold with underlying geopolitical risks remaining."

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

 

Commerzbank Sees Potential Labor Issues That Could Support PGMs

Wednesday September 20, 2017 08:27

Commerzbank cautions that trouble could be brewing in the South African mining industry, which could support prices of platinum group metals. Analysts cite news reports saying that Impala Platinum, the world’s second-largest platinum producer, is planning to make up to 2,500 workers "redundant" after recording a financial loss last fiscal year. According to the company, further redundancies could follow. "This could result in strikes and thus disrupt production," Commerzbank says. Strikes disrupt supplies and have led to jumps in PGM prices in past years.

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

 

TDS: Forex Traders To Focus On Fed Forecasts, Dot-Plot

Wednesday September 20, 2017 08:27

Foreign-exchange traders may pay the most attention to Federal Reserve forecasts and the so-called dot-plot, which lists future expectations for interest rates by individual Fed officials, after a policy meeting winds up on Wednesday afternoon, says TD Securities. Analysts say no rate hike is forecast and the Fed has already telegraphed its intention to start reducing the size of its balance sheet. “We suspect this leaves the FX markets to trade on the details of the dots and forecasts, which are more likely to hurt than benefit the [U.S. dollar],” TDS says. “Indeed, our base-case sees a downward lurch in the dots but not enough of a shift to move the medians. Forecasts will also get close attention, with the balances of risks favoring downside in the DXY [dollar index] and retest of the recent lows.”

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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