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Chinese Demand Picks Up After Holiday – MKS

Friday October 10, 2014 8:05 AM

Chinese traders were back in the market following their Golden Week holiday, with strengthening demand for kilobars prevalent in the last two days, says MKS (Switzerland). “Apparently onshore jewelry sales were brisk during this period so manufacturers have had more appetite to load back up on the metal. This has helped to stabilize gold from the free-fall seen early this week and raise a hair of concern for short specs (speculators),” they say. There may be some further upside to prices as short holders are still dominant and rising prices may force them to cover. “For now though the conviction of specs and producers to sell/hedge is still a force to reckon with and rallies are still being looked at by most as good selling opportunities. Time will tell. I feel a weekly close above $1,220 will put the gold in decent stead to move into the $1,235-45 resistance zone, but still think this is a good selling opportunity.”  

By Debbie Carlson of Kitco News; dcarlson@kitco.com


Base Metal Strength In Face Of Dollar Strength May Not Last – Deutsche Bank

Friday October 10, 2014 8:03 AM

The base metals complex “has been remarkably resilient” even as the U.S. dollar rallies, says Deutsche Bank. However, the bank doesn’t see these base-metal gains lasting if the Chinese property sector continues to fall. “We would view copper as the most exposed in this scenario, while nickel and zinc could be the relative out-performers given the smaller exposure to the real estate sector,” they say.

By Debbie Carlson of Kitco News; dcarlson@kitco.com


Central Bank Gold Activity May Pick Up – Deutsche Bank

Friday October 10, 2014 8:00 AM

Currency, interest rate and equity trends will weigh on gold prices going into 2015, but Deutsche Bank says investors should also look at central bank gold reserve management “as it may become a more important force in setting the direction of the gold price.” They point out next month’s Swiss referendum to increase gold holdings, which would reverse Switzerland’s trend of gold sales since the 1990s. “While the passing of the referendum is far from certain, central bank activity across Asia would suggest that in aggregate the rise in central bank gold holdings, which has been underway since 2008, will continue,” they say. Central-bank buying of gold could help give gold support, particularly if outflows from exchange-traded funds moderate.

By Debbie Carlson of Kitco News; dcarlson@kitco.com


Concerns About Global Growth May Weigh On Platinum, Base Metals – TD Securities

Friday October 10, 2014 8:00 AM

Concerns about global growth, primarily in Europe, have reverberated across equities and are hitting industrially sensitive metals, says TD Securities. All metals are weaker, led by the platinum group metals, nickel, and aluminum.”What has changed? Not a lot, and we are being treated to another example of market psychology where the masses all head to one side of the boat,” they say.

By Debbie Carlson of Kitco News; dcarlson@kitco.com


Gold Sees ETF Outflows Despite Gains This Week – INTL FCStone

Friday October 10, 2014 7:58 AM

Gold prices rose four days in a row this week, which is their longest winning streak in some seven months, says Edward Meir, commodities consultant at INTL FCStone. “Despite the gains, we are not seeing too many converts in the physical space, with Reuters reporting that holdings in the (exchanged-traded fund) SPDR Gold Trust fell by about 5.4 tons to 762 tons as of Wednesday, its lowest level since December of 2008.” Meir says.

By Debbie Carlson of Kitco News; dcarlson@kitco.com




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