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Commerzbank: Silver Break Above $17 Would Attract More Buyers

Kitco News

Silver could draw upside momentum if it can break through $17 an ounce, says Commerzbank. The metal poked above its sideways corridor and threatened $17 on Monday, analysts point out. “The technical picture here has improved noticeably in recent days,” Commerzbank says. “If the price were to exceed the $17 mark, this could lure in further buyers and continue the price rise. Silver has certainly made good some ground vis-à-vis gold in recent weeks – the gold/silver ratio has dropped below 77, its lowest level since early January.” The ratio measures how many ounces of silver it takes to buy an ounce of gold, with a declining number meaning that silver is outperforming gold, and vice-versa.

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

 

Dealers’ Group: Only Short-Term Gold Effect Expected From Trump-Kim Meeting

Tuesday June 12, 2018 08:03

Any gold-price movement after the meeting between President Donald Trump and North Korean leader Kim Jong Un will be only temporary, says Barry Stuppler, president of the Accredited Precious Metals Dealers, a division of the Professional Numismatists Guild. The next major event for markets is a two-day meeting of the Federal Open Market Committee that starts Tuesday. “These events are highly likely to have only a short-term effect on the direction of the gold price,” Stuppler says. “Geopolitical concerns about Iran and Italy have taken a back seat to concerns of how a global trade war will escalate….I look for gold to break out of the recent trading range of $1,282 to $1,307 per ounce very soon, and I believe it will be on the upside."

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

 

SP Angel: Safe-Haven Interest Wanes In Gold After U.S.-North Korea Summit

Tuesday June 12, 2018 08:03

Gold eased but only slightly after the leaders of the U.S. and North Korea pledged to work toward denuclearization of the Korean Peninsula, but the pullback was modest as much uncertainty remains, says commodities brokerage SP Angel in a research note. As of 7:52 a.m. EDT, spot gold was down $3.10 to $1,297.90 an ounce. “Safe-haven interest continues to wane after [U.S.] President Donald Trump and [North Korean leader] Kim Jong Un signed a document pledging to work toward peace on the Korean Peninsula,” SP Angel says. The co-signed document says the North Korean leader “reaffirmed his firm and unwavering commitment to complete denuclearization of the Korean Peninsula” while Trump agreed to “provide security guarantees” to the North. “While progress towards peace gives bearish signals for gold, Trump’s move to meet Kim Jung Un attracted fierce criticism for normalizing a regime routinely called out for its human-rights abuses, that over years has built an image of fearsome renegade regime, throwing around threats of nuclear war,” SP Angel says. “The document neglects to answer some key questions focusing on definitions and the process of denuclearization, details of the security reassurances and the removal of U.S. troops from S. Korea.”

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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