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Commerzbank: Silver Prices Reclaim $17-Per-Ounce Level

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Silver has moved back above $17 an ounce for the first time in roughly two months, points out Commerzbank. “Silver was pulled up by the base metals yesterday and is making further gains this morning,” Commerzbank says. “For the first time in almost eight weeks, silver is priced at over $17 per troy ounce again. That said, its excursion above this mark lasted only three days in April. It remains to be seen whether the upswing that it has been enjoying since the beginning of the month will prove longer lasting this time.” As of 8:57 a.m. EDT, spot silver was 21 cents higher to $17.21 an ounce.

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

 

RBC’s Gero: Gold Futures Getting Short-Covering Boost

Thursday June 14, 2018 00:03

Gold has been boosted by buying from traders looking to offset or cover their short, or bearish, trades, says George Gero, managing director with RBC Wealth Management. As of 8:52 a.m. EDT, Comex August gold was $10.40 higher to $1,311.70 an ounce. “Gold continues up with expected short covering…,” Gero says. He later adds: “Gold has had good reasons for moving up -- oversold, lowest open interest for the year, better crude, better ag commodities and geopolitics.”

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

 

FXTM: Gold Stronger Despite U.S. Rate Hike

Thursday June 14, 2018 00:03

Gold prices have staged a “solid rebound” despite the Federal Reserve raising U.S. interest rates by 25 basis points on Wednesday, says Lukman Otunuga, research analyst at FXTM. The metal has held onto those gains despite strong U.S. economic data Thursday morning. “There is a suspicion that the yellow metal’s appreciation could be off the back of [overnight] dollar weakness,” Otunuga says. “With investors simply engaging in a bout of profit-taking on the greenback following the U.S. interest-rate increase, gold could appreciate further in the short term. However, gold’s gains are likely to remain limited by heightened expectations over two more U.S. interest-rate increases this year.” The analyst adds that “the decisive breakout above the $1,300 psychological level could invite an incline higher towards $1,324.” As of 8:57 a.m. EDT, spot gold was $8.80 higher to $1,307.60 an ounce.

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

 

TDS: End Of U.S. Rate-Hiking Schedule ‘Within Striking Distance’

Thursday June 14, 2018 00:03

The Federal Open Market Committee might have hiked interest rates again Wednesday and signaled four total hikes in 2018, but TD Securities also reads the Fed commentary to mean the end of the tightening cycle may be in sight. Specifically, foreign-exchange analyst say in a research note: “More importantly, the end of the cycle is within striking distance, suggesting another hike or two does little for the USD [U.S. dollar]. Assuming a terminal rate of 3%, an overshoot implies a real rate of 0.5-0.75% depending on the extent of the deviation. A Fed that is nearing the end of its cycle plus a lower real rate is not an appealing combination for the USD, especially as the U.S. twin deficit (current account plus budget) looks set to top 8% of GDP by 2020. We also note the U.S. curve is flattening like a pancake, which reinforces our framework that the USD needs a steeper (not flatter) curve to rekindle the good old days.”

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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