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MKS: 39 Tonnes Of Gold Reportedly Bought During Chinese Trading Day

Thursday December 18, 2014 10:42 AM

Gold futures are off their highs and relatively unchanged for the day. As of 10:41 a.m EST, Comex February gold was trading at $1,194.2 an ounce, down about 50 cents, on the day. Analysts from MSK (Switzerland) SA, note that gold’s rally started overnight during the Asian trading session as there was strong demand for physical gold seen in China. They add there were reports that 39 tonnes of gold was bought during the session. However, the rally was not sustainable. “As we are accustomed to seeing recently, interest dropped off during the Chinese break before USD $1,200 was breached in the afternoon session,” they say. The analysts add that silver also pushed higher on the back of renewed gold demand from China.      

By Neils Christensen of Kitco News; nchristensen@kitco.com


RBC: Fed To Revive 2004 Strategy In 2015

Thursday December 18, 2014 9:27 AM

Analysts at RBC Capital Markets say it appears that the Federal Reserve dusted off an old play book and used the same communication style from 2004 in Wednesday’s statement. “Back then they dropped ‘considerable period’ in January 2004 and replaced it with ‘patient.’ They hiked in June of that year. The twist this time is they used both phrases in the same statement, but the transition to the new language is obvious,” they say. RBC adds that they are expecting for the language to remain similar to 2004 moving forward, leading to an eventual hike in June.

By Neils Christensen of Kitco News; nchristensen@kitco.com


HSBC: Possible June Rate Hike Will Keep Gold Prices Lower

Thursday December 18, 2014 9:21 AM

Following the Federal Reserve’s confusing monetary policy statement, and Fed Chair Janet Yellen’s clarification, commodity analysts at HSBC expect gold to remain under pressure as a June rate hike remains a possibility. “Federal Reserve Chair Janet Yellen, in a press conference following the statement, said that while the Fed is unlikely to begin [a] normalization process for at least the next couple of meetings, the timing of the initial rise in the Fed funds target as well as the path for the target thereafter are contingent on economic conditions,” they say. “This was interpreted as negative for the gold market as it indicated that a June rate hike is still in play.”

By Neils Christensen of Kitco News; nchristensen@kitco.com


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