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FXTM: Gold Remains In Range Despite Renewed Weakness

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Gold is back on the defensive yet remains within the wide trading band that has been in place all year so far, says Lukman Otunuga, research analyst at FXTM. “An aggressively appreciating dollar, expectations of higher U.S interest rates and easing geopolitical tensions are the most likely culprits for the yellow metal’s depreciation,” the analyst says. “With the dollar expected to remain supported by rising bond yields and Fed hike speculation, zero-yielding gold could feel the heat. If [the] U.S GDP [gross-domestic-product] data release dishes out an upside surprise on Friday, bears may be injected with enough inspiration to send prices towards $1,300.” As of 8:20 a.m. EDT, spot gold was $9.60 softer to $1,320.60 an ounce. “All in all, it must be kept in mind that gold still remains in a wide $60 range with support at $1,300 and resistance at $1,360,” Otunuga says. “Prices are likely to remain confined within these regions until a fresh catalyst is brought into the picture.”

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

 

MKS: ETFs Continue To Accumulate Gold

Wednesday April 25, 2018 08:00

Exchange-traded-fund investors have continued to seek exposure to gold, with ETF holdings rising by another 95,000 ounces Tuesday, says Alex Thorndike, senior precious-metals dealer with MKS (Switzerland) S.A. “That takes the monthly accrued buying to ~1.6 million ounces across gold ETFs, according to Bloomberg, and we feel that if this continues, gold should remain supported above $1,300-1,310,” Thorndike says. “We see strong resistance at $1,360-70 area, where we have stalled numerous times.” The ETFs trade like a stock but track the price of the commodity, with metal put into storage to back the shares. As of 7:49 a.m. EDT, spot gold was down $9.75 to $1,320.45 an ounce.

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

 

Commerzbank: Gold/Silver Ratio Climbing Back Toward 80

Wednesday April 25, 2018 08:00

The gold/silver ratio has started climbing again, points out Commerzbank. The ratio measures how many ounces of silver it takes to buy an ounce of gold, with a lower number meaning silver outperformance, and vice-versa. Gold is back on the defensive Tuesday after gains on Monday, with a firmer U.S. dollar putting pressure on the metal, Commerzbank says. “After its brief surge to a 2½-month high last Thursday, silver has dropped back noticeably…,” the bank says. “The gold/silver ratio, which had fallen for a time to 78, has climbed back almost to 80 as a result. Silver has clearly been dragged down by base metals in recent days, whereas gold has fared somewhat better, despite suffering some losses.” As of 7:49 a.m. EDT, spot gold was down $9.75 to $1,320.45 an ounce, while silver was down 15 cents to $16.541. This meant a gold/silver ratio of 79.8.

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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