Friday February 13, 2015 1:07 PM

The recent pullback in precious metals prices should be seen as a buying opportunity, and there may even be chance for a late-Friday bounce, says Triland Metals. “With fundamental factors aligning for the complex precious metals appears to be back in favor and this retracement/dip should be seen as a decent buying opportunity,” Triland Metals analysts say in a report Friday. “In particular we are witnessing inflows on down days as well as up days…and there is a potentially classic Friday bounce back on the cards,” they add. Technically, they say that support for gold stands at $1,221/oz and they see $1,238/oz as the first potential upside target. “It is a key battle ground here and with the nearby forwards getting tight again we expect there is physical demand out there to bolster the prices.”

By Sarah Benali of Kitco News; sbenali@kitco.com

 

Silver Bulls Back In Control, Must Remain Cautious - iiTrader

Friday February 13, 2015 10:03 AM

Silver broke out of a wedge Friday and iiTrader’s Bill Baruch says it seems to be taking a ‘one-way ticket’ up to $17.40 an ounce, while gold is being held back from further gains. “An initial drop in the dollar Index following better than expected GDP data out of Europe was supportive to gold though technical resistance kept the metal in check as well as what has become oversold conditions in the dollar to finish out the week,” Baruch says. “March silver just broke out of its coiling wedge pattern and appears to be on a one way ticket to 17.40. A close above here will lead the way towards 17.88 and then ultimately 18.80,” he adds. Although silver is picking up steam, Baruch says the silver bulls shouldn’t celebrate just yet even if “this morning’s early action has the bulls back in control.”

By Sarah Benali of Kitco News; sbenali@kitco.com

 

Capital Economics: India, Emerging Markets Still A Bright Spot For Gold

Friday February 13, 2015 9:43 AM

Although gold prices have been struggling recently, commodity analysts at Capital Economics say that global demand should continue to support the precious metals complex. They remain positive on gold, despite the fact that the U.S. is expected to raise rates in the second half of the year. “Admittedly, the strengthening U.S. dollar and prospect of Fed tightening represent significant headwinds. However, U.S. interest rates are likely to rise only very slowly and we anticipate that strong emerging market demand will still lift prices this year,” they say. They add that one area of strong demand is India, as the government proposes policy reforms and the country is seeing a favorable shift in demographics.

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

 

Deutsche Bank: Further Downside For Gold

Friday February 13, 2015 9:26 AM

The precious metals complex is the one bright spot as the commodities sector remains the worst performing asset class in 2015, say strategists at Deutsche bank. However, they add that they are not optimistic that gold can remain positive as the yellow metal has lost ground since last week’s strong U.S. employment data. “We are maintaining our view that the Fed will hike in June and if this starts to become increasingly priced into the euro$ curve then precious metal prices have further downside,” they say.

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

 

INTL FCStone: Temporary Agreement Between Greece, EU Would Be Gold Negative

Friday February 13, 2015 9:26 AM

Although there is lingering uncertainty, financial markets are still expecting to see an agreement hashed out between Greece and the European Union, which could be negative for gold next week, says Edward Meir, commodity consultant at INTL FCStone. “We have been friendly to gold for much of the last few weeks, but admittedly do not have much to show for it, as the complex has instead been struggling for much of this time,” he says. “If a temporary agreement is reached, we very well could see the next ‘shoe to drop’ as far as gold is concerned, with a likely test of the $1200 mark being a very real possibility.”

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