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Commerzbank: Expected Fed Hike To 'Keep The Gold Price In Check'

Kitco News

Several factors could limit gold’s upside potential for now, says Commerzbank. On the news front, last week ended with a stronger-than-forecast U.S. jobs report for May, with unemployment continuing to fall but wages rising more than expected, pointing to inflation risks, the bank says. “The U.S. Fed is likely to see this as confirmation that its cycle of rate hikes is appropriate,” Commerzbank says. “We expect the next rate hike at the Fed’s upcoming meeting next week, which should keep the gold price in check until then.” Further, analysts continue, some of the European political uncertainty has eased now that a government has been formed in Italy and the leadership transition appears to have taken place smoothly in Spain. Also, U.S. President Donald Trump says an on-again, off-again summit with the leader of North Korea now will take place after all. “This has also slowed demand for gold as a safe haven,” Commerzbank says.

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

 

CME Group: May Metals Volume Rises 25% From Year Ago

Monday June 4, 2018 08:18

Exchange operator CME Group reports that metals volume averaged 674,000 contracts per day in May, up 25% from 540,000 in May 2017. Average daily volume in gold futures and options grew 34% to 447,000 contracts, while the same for copper was up by 38% to 117,000 contracts. Metals volume averaged 680,000 contracts daily for the three months ending with May. This compares with 685,000 for the three months ending with April, 713,000 for the three-month period ending with March and 662,000 for the period ending with February.

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

 

INTL FCStone: Platinum ‘Could Continue To Struggle’

Monday June 4, 2018 08:18

Platinum “could continue to struggle” in June, while palladium may be a “relative winner” among the precious metals, says INTL FCStone in a monthly commodities outlook. Most analysts expect the platinum market to be in surplus for 2018, the firm points out. In particular, INTL FCStone cites data from Johnson Matthey forecasting a surplus of 316,000 ounces in 2018, which would be a six-year high, with automotive demand falling 3% after a 1% drop last year. “Over the course of June, we see prices trading between $870-$935 [an ounce], not far off from last month’s trading range, but see a steady grind lower heading into the second half of the year,” INTL FCStone says. Palladium, which is expected to post another supply deficit during 2018, was forecast by INTL FCStone to be in a June range of $960 to $1,030.

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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