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CME Trading Activity Down Y-o-Y, Metals Activity Up

Monday May 4, 2015 3:29 PM

Trading activity on the CME was lower last month compared to 2014, the CME group says in a press release Monday. According to the exchange’s trading stats, total volume in April was 252 million contracts, down 2% from April 2014. Options volume on the exchange averaged 2.3 million contracts per day, down 1% from last year. However, looking at the metals market, the exchange said there was a slight rise. According to the stats, the metals complex saw average daily volume of 324,000 contracts, up 1% compared to April 2014.

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

 

Weaker U.S. Dollar, Slowing Economy Should Support Gold – INTL FCStone

Monday May 4, 2015 12:34 PM

Risks are rising for gold prices to remain weak as the technical picture looks grim; however, Edward Meir, commodity consultant with INTL FCStone, says he still remains “mildly optimistic” as prices manage to find support above $1,175 an ounce. “We realize that a closing break below $1,175 support could change the picture in that it would involve a marked deterioration in the technical outlook,” he says. “We still think the dollar’s decline has more room to go, as does the slowdown in the U.S. economy. Both should offer gold an element of support going forward.

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

 

Positive Employment Data To Pressure Gold – DailyFX

Monday May 4, 2015 12:34 PM

Michael Boutros, currency analyst at DailyFX, says he is taking a neutral stance on gold ahead of April’s nonfarm payrolls report to be released Friday. However, he adds he will resume his bearish outlook following a positive employment report. He says the yellow metal is expected to be under pressure as “improving U.S. metrics build the case for higher rates from the Fed.” The key support level to watch will be $1,150 an ounce and a break below that could lead to a test of the 2014 lows at $1,142 an ounce.

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

 

Higher Bond Yields Hurting Gold, But Trend Can’t Last – Commerzbank

Monday May 4, 2015 9:47 AM

The only plausible explanation for weaker gold prices is because of high bond yields in the U.S. and Europe, say analysts at Commerzbank; however, they add that this still isn’t a very strong argument for why gold prices are weaker. “The increase [in bond yields were] not attributable to rate hike speculations or any rise in risk appetite, but to position squaring. After all, there has been no strong economic data, and equity markets fell significantly last week. This is probably why there have been continuous inflows into the gold ETFs,” they say.

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

 

Gold Market Suffering From Higher Interest Rates And Weak Demand – Barclays

Monday May 4, 2015 9:47 AM

The gold market is suffering on two fronts, according to commodity analysts at Barclays, which is helping prices remain at a six-week low. “Gold sits under a cloud of a firmer interest rate environment, and scope for the first rate hike since 2006. Its spirits have been further dampened by a lacklustre physical market in China and India,” they say. Despite early optimism during India’s Akshaya Tritiya festival, analysts say that gold consumption was actually disappointing. They also note that interest in gold-backed exchange-traded products has also softened as holdings remain flat in April.

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

 

Friday’s Employment To Create New Momentum For U.S. Dollar Strength – BNP Paribas

Monday May 4, 2015 9:47 AM

The U.S dollar Index appears to have put in a near-term bottom on Friday, ending a six-day losing streak, and looking ahead, currency analysts at BNP Paribas say the U.S. dollar could find some more strength by the end of the week following a better-than-expected employment report. “Our economists expect a solid rebound in April non-farm payroll employment, to 275K. They also expect hourly earnings to pick up to 2.3% y/y, which would be another indication that the Fed may not be able to hold back from rate rises for very long,” they say. “We think strong data will create a more fundamental driver for the rise in US yields, which would bolster for the USD.”

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

 

 

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