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Commerzbank: Gold Dips Below, Still Hovers Near 200-Day Average

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Gold is right around its 200-day moving average after sliding below this during a sell-off on Tuesday, points out Commerzbank. “Gold dipped below the technically important 200-day moving average yesterday, though the technical follow-up selling that had been feared failed to materialize,” says Commerzbank. The metal has stabilized so far Wednesday, leaving it right around the 200-day average that now stands at $1,267. As of 8:53 a.m. EST, spot gold was down 70 cents to $1,265.20 an ounce but had been as high as $1,269.30. Commerzbank blames the recent decline on speculative financial investors withdrawing from gold after having expanded their net-long (bullish) position once again at the end of November. “The price is finding some support at least from reports from the U.S. that President Trump is planning to move the U.S. embassy in Israel to Jerusalem and to recognize the city as Israel’s future capital,” Commerzbank says. “This could spark renewed conflict in the region.”

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

 

Metals Focus Sees Structural Changes In U.S. Jewelry Industry

Wednesday December 06, 2017 09:20

Structural changes are occurring in the U.S. jewelry industry, making data on sales seemingly contradictory, says Metals Focus.  The consultancy notes that the Jewelers Board of Trade reported that the number of retailers in the U.S. in the third quarter fell by 4% year-on-year and same-store sales by the largest retailer, Signet, were down 5%. At the same time, the Bureau of Economic Analysis reported third-quarter jewelry sales rose 7% year-on-year, while Metals Focus reports a 6% year-on-year increase in quarterly gold-jewelry imports in fine weight terms. “A recent field trip to the U.S. confirmed our view that a key driver of these variances is the structural changes that are affecting the U.S. jewelry retail space,” says the consultancy. “As with other sectors, online sales are booming, while out-of-town shopping malls (particularly smaller, lower-end malls) are suffering. Malls and more broadly, department stores, especially mid-tier, have been suffering as consumption splits between value shopping at the discounters and reward/experience shopping for brands. As a result, published financial figures for individual companies may well provide little guide to the overall market.” The structural changes may be reflected in the holiday shopping season, Metals Focus points out. For instance, “the rise in online sales and its expectations of next-day delivery have tended to make consumers more comfortable with last-minute purchases generally.” This in turn makes sales forecasts more difficult, the consultancy adds.

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

 

RBC’s Gero: Comex Gold Draws Bargain Hunting

Wednesday December 06, 2017 09:20

Comex gold has nudged modestly higher on bargain hunting even though the ADP private-sector payrolls report was slightly stronger than forecast, showing 190,000 new jobs were created last month, says George Gero, managing director with RBC Wealth Management. “Bargain hunters [are] adding a little in gold this morning after stocks sold off in Europe and Far East,” Gero says. He also says some gold traders have covered short, or bearish, positions ahead amid market chatter about new U.S. tax legislation and the possibility of a government shutdown when the debt-ceiling deadline expires this month. As of 9:09 a.m. EST, Comex February gold was $2.20 higher to $1,267.10 an ounce. “Possible headwinds now are next week’s possible rate hike start by the Fed; rate hikes are a headwind that temporarily ignore inflation next year,” Gero says.

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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