Make Kitco Your Homepage

INTL FCStone: Dollar, Treasury Yields Pressure Precious Metals

Kitco News

Precious metals remain on the defensive, with Comex June gold falling as far as $1,325.30 an ounce, which is the weakest level since April 6. “The precious metals complex as a whole is also being buffeted by several other exogenous variables, including a modest strengthening in the dollar, coupled with rising U.S. 10-year rates that hit a fresh high of 2.95% on Friday,” says INTL FCStone. Ten-year yields have climbed further to a peak of 2.975% so far on Monday. “In the geopolitical sphere, gold has been knocked back by news out over the weekend that North Korea will now suspend its missile tests and launches and will also close down a key launching site in the northern part of the country,” INTL FCStone says. “All this comes in advance of key talks that President Trump is going to be having with the North Korean leader in a few weeks’ time. Some are cautioning that the North Koreans are bluffing, but in our view, there is a chance they can go all the way given the sanctions squeeze they are under, coupled with the fact that their current leader may not necessarily engage in the same bait-and-switch negotiating tactics his father was involved in, which doomed previous negotiations.” As of 9:55 a.m. EDT, Comex June gold was down $12.70 to $1,325.60 an ounce, while May silver was 46.3 cents softer to $16.70 an ounce.

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

 

Analysts: ETF Gold Holdings Rise For 13th Straight Day

Monday April 23, 2018 08:10

As last week wound down, holdings of gold by global exchange-traded funds rose for the 13th consecutive business day, analysts report. The ETFs trade like a stock but track the price of the commodity, with metal put into storage to back the shares. “Unresolved geopolitical issues draw exchange-traded funds to continue to add to gold holdings for the 13th straight day, increasing holdings by 252,461 ounces of gold to bring this year’s net purchases to 3.1 million ounces,” says commodities brokerage SP Angel. Analysts with Commerzbank cite Bloomberg data showing that nearly eight tonnes were added to ETF holdings on Friday. “As such, holdings were topped up by 17 tonnes last week and by 53 tonnes since the beginning of the month,” Commerzbank says. “That is almost as much as in the whole of the first quarter.”

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

 

Gold Hurt By Easing Trade Fears, Soft Dollar, Treasury Yields

Monday April 23, 2018 08:10

Gold is down for the third straight business day, with analysts citing several factors. Commodities brokerage SP Angel points to easing fears of an escalating global trade conflict after U.S. Treasury Secretary Steven Mnuchin hinted at a truce with China. In particular, analysts cite news that Mnuchin announced a trip to China at a time when markets fear that a trade war could harm the global economy, with Mnuchin expressing cautious optimism on prospects of an agreement. “A firm U.S. dollar and still-rising yields on 10-year U.S. Treasuries – the latter are nearing the 3% mark – are putting pressure on gold as the new week begins,” Commerzbank analysts report. “The gold price is therefore continuing the correction it began mid-last week and is trading at a good $1,330 per troy ounce this morning….One role in the falling gold price is presumably being played by the further signs of detente in the North Korean conflict after North Korea’s leader Kim Jong-un announced at the weekend that no further nuclear weapon testing would be carried out for the time being.” As of 8 a.m. EDT, Comex June gold was $8.30 lower to $1,330 an ounce.

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

 

Copper Journal: Silver ‘Will Surely Follow’ Any Gold Breakout

Monday April 23, 2018 08:10

Look for silver to fare better than gold if the latter breaks out to the upside and silver “surely” follows, says John Gross in weekly commentary with the Copper Journal report. The report addresses not only copper but other metals as well. Gross says charts of the silver and gold reflect “a growing divergence and widening gap, which we expect will begin to narrow soon.” While gold has been making higher lows since January 2016, its highs have been capped not far above the $1,350 area, Gross notes. “Silver, on the other hand, has been moving sideways between roughly $15.35 and $18 over the past 16 months,” Gross reports. “With most other markets moving up, we are hard pressed to think the cap on gold will remain intact. And if /when gold breaks out, silver will surely follow.”

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.

Precious Metal Charts

Follow Kitco News