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Silver Needs To Break $16.10 Before Serious Short Covering – TD Securities

Monday March 9, 2015 1:08 PM

As investors see a “lackluster” trading day, gold’s main objective is to close the week closer to key resistance levels, while silver needs to break through $16.10/oz to holds its ground, says TD Securities. “We expect resistance in gold from $1178-1182 and key support coming in at $1160,” says Steven Scacalossi of Global Metals, TD Securities. “Silver is turning in a good performance, but it will need to break through $16.10 before it’s in any danger of serious short covering.” Scacalossi notes that trading volumes have resumed to lower levels with, “gold at just over 81k contracts and silver just over 18k contracts.”

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

 

HSBC: Potential Equity Selloff On Rate Hike Could Be Good For Gold

Monday March 9, 2015 10:51 AM

Friday’s February jobs report clearly shows that U.S. monetary policy will be changing, but that might not be all bad for gold, say analysts from HSBC. Although higher interest expectations are hurting gold prices in the short-term, they say there is one silver lining within the current market conditions. “…Higher rate expectations may pressure equities, if this continues gold could see some respite in its selling,” they say. HSBC is also watching oil prices because a sharp fall in crude could also be positive for the yellow metal.

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

 

June U.S. Rate Hikes, Gold Market May Not Have Priced It In Yet – Barclays

Monday March 9, 2015 10:51 AM

Uncertainty surrounding U.S. Federal Reserve rate hikes is hurting gold prices because Barclays analysts say the market has probably not yet priced it in. “While a rising rates environment bodes ill for gold, its sensitivity to Friday’s data highlights that, the gold market at least, has not fully priced in a rate hike with the focus at the start of the year centered on Europe,” they say, adding that Friday’s stronger-than-expected nonfarm payrolls data leads them to support the idea of a June rate hike. The analysts’ outlook for gold remains to the downside, “…until physical buying cushions prices, which is likely in April amid festival-related buying.”They add that a move below $1,167/oz for gold would “further downside towards the 1131 lows of 2013 and scope for an extension lower. Our greater targets near 1093.”  

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

 

Gold Could See Last Year’s Lows – Mitsubishi

Monday March 9, 2015 10:27 AM

Despite gold’s slight bounce Monday, Mitsubishi Corp analysts say a $1,130/oz price tag for the metal may not be out of the cards. “On Friday, gold decisively broke with the uptrending support line that extended back to early November and resumed a downtrend line that was in evidence since mid-January,” says Jonathan Butler, precious metals strategist for Mitsubishi. “This could bring last year’s low of $1,130 in prospect once again.” With silver below $16 an ounce, Butler adds that the next major support level for the metal lies at $15.55/oz. “With prices remaining below the 50 and 100-day moving averages, the short-term trend is downwards,” he says. However, even if gold and silver prices have suffered in U.S. dollar terms, Butlers says Europe as well as Asian physical demand may support the metals’ prices. “Although precious metals priced in USD came under short-term pressure, we note that falling bond yields and low opportunity costs in the Eurozone should continue to make non-yielding precious metal investments attractive,” he says. “Physical demand from China and perhaps also India should put a floor under the price in the coming days.”

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

 

iiTrader: Bulls Have to Keep Gold Above $1,168.30 To Build Momentum

Monday March 9, 2015 9:40 AM

The gold market is seeing some modest buying Monday morning after Friday’s massive selloff, following the stronger-than-expected February nonfarm payrolls data. Comex April gold futures last traded at $1170.10 an ounce, up 0.5% on the day. Although significant damage has been done to gold’s technical picture, commodity analysts at iiTrader say there is still an opportunity for the precious metal to consolidate and build momentum for an eventual push higher. They say “…if the bulls can keep the market above $1168.3-$1172 they can encourage a consolidation back towards previous lows at $1190. The Federal Reserve’s two day meeting that begins next Tuesday will begin to come into focus this week as it will play a crucial role in signaling a rate hike after this jobs report.”

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

 

MKS: Only Modest Buying Seen During Asian Session, No Fireworks

Monday March 9, 2015 9:37 AM

Physical buying in Asia helped to support and boost gold prices overnight, but Alex Thorndike, precious metals dealer at MKS SA, said it was much lower than what they were expecting, considering that Friday gold prices dropped to a 13-week low. “Modest buying from physical names was seen as the day progressed, but it was certainly less than what we were expecting. Perhaps many of the physical traders think we have further to go to the downside,” he said. “It will be interesting to watch gold over the coming week or so as to whether we have more room to the downside. Friday's clear break of $1185-90 will likely signal additional weakness and we feel selling back towards that area is a good play.”

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

BNP Paribas: USD On An Upward Trajectory

Monday March 9, 2015 9:37 AM

Positive economic data this week will continue to Pressure the Fed to hike rates, which will drive the U.S. dollar higher say currency analysts at BNP Paribas. They add that they expect the central bank to start raising rates in September but after Friday’s February jobs report there are growing expectations for a hike in June. “US yields are on a renewed upward trajectory, which will continue to catalyse the USD,” they say. The next major data report that is expected to confirm the U.S. economy is recovering will be February retails sales numbers, which will be released Thursday. “The USD is set to strengthen further this week with the upcoming February retail sales report, which is expected to be upbeat,” they add.

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

 

 

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