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Triland Metals: Severe Pressure Could Push Gold Through 2014 Lows

Friday March 6, 2015 1:40 PM

Gold prices are under severe pressure heading into the weekend say analysts from Triland Metals. They note that the stronger-than-expected nonfarm payrolls data propelled gold through the interim January lows at $1,167.30 and there is a chance that prices continue to move lower. “The $1130 low is back in sight now and there doesn’t seem to be the tightness (yet) in the physical market and nearby forwards that was a precursor to support in late 2014,” they say. Friday afternoon Comex April gold futures fell to a session low at $1,162.90 an ounce and are only marginally higher, trading at $1,164.50 an ounce.

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


DailyFx: Wage Inflation Disappointing But Won't Stop Fed Rate Hikes

Friday March 6, 2015 10:40 AM

Wage inflation was the most discouraging part of February’s nonfarm payrolls report, but according to Christopher Vecchio, currency analyst at DailyFX, it won’t be enough to keep the Federal Reserve from eventually pulling the trigger on higher interest rates. “The Fed has stated its desire to see wage growth accelerate before it tightens policy; but it was also made clear in the January minutes in recent weeks that rate hikes could occur even if inflation is floundering. For now, as the Fed doesn’t consider the drop in inflation anything more than transitory, it’s unlikely that the wage figures ruffle too many feathers, at least for the U.S. Dollar,” he says.

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


Stronger U.S. Dollar Hammering Euro And Gold

Friday March 6, 2015 7:58 AM

Both the euro and gold prices remain under significant pressure from the U.S. dollar. The strong greenback has pushed gold prices below the key psychological level of $1,200 an ounce and has pushed the euro to a 12-year low. Currently spot EUR/USD is trading at 1.09642, down more than 0.5% on the day. Comex April gold futures are trading at $1,195.30 an ounce, flat on the day. According to some analysts the euro is expected to remain in a continued downtrend as the European Central Bank starts buying government debt March 9. Currency analysts from BNP Paribas say they are expecting the EUR/USD to fall to a low of 1.08 but other analysts are talking about the possibility of the euro hitting parity against the greenback. However, euro weakness is making gold attractive to European investors as the yellow metal is up against the single currency Friday. Spot gold/EUR last traded at €1090.78, up €4.62 or 0.43% on the day.

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


MSK: Market Looks Heavy As Chinese Remain Lone Gold Buyers

Friday March 6, 2015 7:35 AM

Chinese investors have been the lone buyers of gold as the price has dipped below $1,200 an ounce, but even that interest appears to be waning as the market looks heavy, says Alex Thorndike, senior precious metals dealer at MKS SA. “The metal continues to oscillate within a $1195-1210 range where we have been trapped for some time. Asia continually bids the market higher while [New York] continually pushes it lower usually at the close of the session,” he says. Ahead of the North American session, Friday morning, Comex April gold futures were trading slightly in negative territory at $1,195.20 an ounce, down a buck on the day.

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


BBH: Sub-200K Employment Growth Could Disappoint U.S. Dollar Bulls

Friday March 6, 2015 7:20 AM

Currency analysts at Brown Brothers Harriman (BBH) say there is risk that today’s U.S. employment numbers disappoint U.S. dollar bulls. A weaker U.S. dollar could be positive for gold prices in the near-term. “Most of the recent US data has surprised on the downside.  The US has not reported a sub-200k non-farm payroll report since last February, but we think this is the risk today,” they say. “After above trend growth, we recognize the risk of payback now.” But even if the data are weaker than expected, BBH adds they don’t think it will impact the timing of the Fed rate hike, either coming in June or September.

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



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