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Price Group's Flynn: Global Tensions To Underpin Gold

Kitco News

Enough uncertainty persists in the world to boost gold prices in the short term, says Phil Flynn, senior market analyst with at Price Futures Group. The metal rose sharply early in the week before falling back. “We’re probably at the lower end of the recent whipsawing trading range,” Flynn says. “Because of the uncertainties surrounding Syria and the possibility of sanctions by Russia on U.S. goods, the tensions are running high. That will help gold next week.” The one factor holding gold back some, he adds, is the expectation for more rate hikes by the U.S. Federal Reserve.

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

 

BMO: Industrial Demand To Boost Silver; Supply Is ‘Headwind’ For Now

Friday April 13, 2018 8:52

BMO says mine-supply growth will be a “headwind” for silver prices this year but recovering industrial demand will help the metal in the longer term. Analysts cite data from the Silver Institute showing that industrial demand for silver rose 3.8% year-on-year in 2017 on the back of stronger photovoltaic demand. At 599 million ounces, this was the first rise in industrial demand since 2013, aided by an 18.6% jump in photovoltaic demand to 94.1 million ounces. Meanwhile, global demand from silver jewelry rose 2% last year to 209.1 million ounces, although demand for silver coins and bars dropped 27% to 151.1 million. “We view a recovery in industrial demand as a key positive for the silver market over the coming years, helping to lower the gold-silver ratio,” BMO says. “However, for 2018, we do see decent growth in mine supply as a headwind.”

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

 

Commerzbank: Supply Appears To Be Holding Back Palladium

Friday April 13, 2018 8:52

An adequate supply of palladium appears to be holding back palladium prices since automotive sales are strong, which should underpin demand for the metal for catalytic converters, says Commerzbank. “Following the U.S. lead, the Chinese auto market has now been reported to have picked up significantly again in March,” the bank says. Analysts cite data from the China Association of Automobile Manufacturers showing that 2.17 million cars were sold, which was up 3.5% year-on-year. However, palladium prices have not been able to profit from the robust auto markets in the U.S. and China, Commerzbank says. “On the contrary, of the commodities we analyze, palladium is one of the weakest so far in 2018, down 9% since the start of the year,” the bank says. “In our opinion, this is partly due to the global palladium market probably being significantly better supplied this year.” 

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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