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INTL FCStone: Gold Upticks But 'Still Has A Lot Of Work To Do'

Kitco News

The price of gold has bounced but the metal “still has a lot of work to do to recoup yesterday's sharp decline,” says INTL FCStone. As of 8:44 a.m. EDT, Comex June gold was $1.70 higher to $1,325.70 an ounce, while May silver had not moved much, easing just 2.2 cents to $16.565. “The stronger dollar is keeping the upside potential somewhat in check and the fact that U.S. 10-year yields are now hovering at just under 3% is not helping much either,” INTL FCStone says. “The next inflection point, at least for gold and oil, will likely come early next month, which is when the Trump administration has to come to grips with intense European pressure and decide whether it will remain in the Iranian nuclear deal.”

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

 

Commerzbank: Palladium Falling As Concerns About Sanctions Ease

Tuesday April 24, 2018 08:12

Palladium prices have fallen back as the U.S. considers easing sanctions against Russia’s Rusal, says Commerzbank. This in turn has reduced market fears that the Trump administration will not extent sanctions to Nornickel, a major palladium producer. As of 8:02 a.m. EDT, Nymex June palladium was $13 lower to $966.55 an ounce. Palladium has fallen as far as $955.75 so far Tuesday after it had been as high as $1,047.75 last week on worries that sanctions would limit the palladium supply from key producer Russia. “As such, it has followed base metals prices on their downward trajectory now that the U.S. is considering lifting the sanctions against Rusal and probably will not impose any further sanctions against Russia,” Commerzbank says. “In response, the price gap to platinum has narrowed to $50 per troy ounce again.”

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

 

BMO: China’s First-Quarter Gold Output Declines

Tuesday April 24, 2018 08:12

Gold output in China, the world’s largest producing nation, fell in the first quarter, which BMO Capital Markets says is due to the country’s increased emphasis on protecting the environment. “The environmental clampdown in China continued to impede gold production in Q1, with output falling 3% y/y [year-on-year] to 98.2 tonnes,” BMO says. “Meanwhile, consumption dropped 5.4% y/y in the first Q1 decline in many years, but against a strong Q1 comparison last year. China remains the world’s largest gold-mining country at present, but unless this trend reverses this position may come under pressure.”

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

 

Commerzbank: Swiss Gold Exports To Asia Soft During March

Tuesday April 24, 2018 08:12

Switzerland’s gold exports to Asia were soft last month, says Commerzbank. Analysts cite data from the Swiss Federal Customs Administration showing that exports to India slumped to just 12.3 tonnes. “Two weeks ago, the Indian Ministry of Finance had already reported low gold imports,” the bank says. Meanwhile, Switzerland’s gold exports to China fell 40% month-on-month. “Exports to Hong Kong more than doubled, on the other hand,” analysts continued. “Data from the Chinese customs authorities show that China also imported less silver (346 tonnes) year-on-year in March but somewhat more platinum and palladium (8.5 and 1.6 tonnes, respectively).”

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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