$1,050 Could Be In the Cards For Gold – Triland Metals
Friday January 22, 2016 07:35
Despite the positive start to the year, the gold market still looks grim according to analysts at Triland Metals. In a report Thursday, they say that gold’s inability to break above $1,100 an ounce could mean that the $1,050 level might be seen in the “not too distant future.’’ “Given the overall sentiment around the markets gold's performance has been poor and remains well and truly under pressure in the medium term despite what all the papers may say,” they say.
By Neils Christensen of Kitco News; nchristensen@kitco.com
U.S. Mint Sells Nearly All Of Silver-Coin Allocation So Far This Month
Thursday January 21, 2016 11:11
The U.S. Mint appears to have sold all of the American Eagle silver coins it has allocated so far this month. The Mint allocated 4 million ounces for the week of Jan. 11, when sales on 2016-dated coins began, and then 1 million for this and future weeks. This means an allocation of 5 million ounces so far. Meanwhile, data on the Mint’s website shows that 4.95 million coins have been sold so far this month. Even with the allocation, the total for the month so far is down only modestly from the 5.53 million coins sold for all of January 2015. Meanwhile, American Eagle gold coin sales so far are 95,500 ounces, already exceeding the 81,000 ounces in sales for the same month a year ago. January sales tend to be among the strongest each year as buyers seek coins dated for the new year.
By Allen Sykora of Kitco News; asykora@kitco.com
UBS: Impact Of Emissions Issues Unclear For Platinum Market
Thursday January 21, 2016 09:46
The impact of emissions issues on platinum remains unclear, says UBS. The Volkswagen emissions scandal that broke in September prompted some ideas that car buyers may move away from diesel-powered vehicles, which use platinum for catalytic converters, to gasoline-powered cars that use palladium. However, UBS also says, “A potential negative impact on diesel sales as a result of the VW emissions issue could be offset by the need to keep diesel in the mix in order to meet tighter CO2 emissions targets. Electrification could be a challenge in the long run. Our auto analysts have
made no changes to their expectations for diesel share in Europe.”
By Allen Sykora of Kitco News; asykora@kitco.com
HSBC Looks For Gold Rally To Continue But With Potential For Near-Term Pullback
Thursday January 21, 2016 09:18
Gold may well build upon recent gains above $1,100 an ounce, although there is potential for a near-term pullback first, says HSBC. The bank cites recently sluggish U.S. economic data, with the government on Wednesday reporting the Consumer Price Index dipped 0.1% and housing starts fell 2.5% in December, with this coming after recently soft retail sales. “As a result, market expectations for a Fed rate hike are receding,” HSBC says. This is gold-supportive. Also, recent global trends have helped the metal, HSBC continues. “Concerns in China have spread to the U.S., benefitting gold,” the bank says. “The financial markets have been rattled this year with dislocation stemming back to December 2015. Since the Fed raised interest rates in December, the oil price has fallen by more than 20%. The S&P 500 stock index is down more than 10%. Most economists’ growth forecasts have been ratcheted lower.” The labor market has been strong, creating 292,000 jobs in December, even though other data has been soft, which in theory suggests weak productivity growth, HSBC says. “Weak or falling productivity is traditionally gold-friendly,” the bank continues. “Although prices may pull back near term, we look for the gold rally to continue above $1,100/oz.”
By Allen Sykora of Kitco News; asykora@kitco.com
INTL FCStone: Stock, Oil Markets ‘Oversold’ With Implications For Gold
Thursday January 21, 2016 08:17
Based on technical indicators, equities and crude oil became “oversold” on their recent sell-off, says Edward Meir, commodities consultant with INTL FCStone. This has implications for gold, as the yellow metal has drawn a safe-haven bid while stocks tumbled. “Although the outlook in general for a number of markets remains extremely negative -- and thus bullish for gold -- there is no doubting the fact that technically at least, several of these battered complexes are quite oversold,” Meir says. Perhaps as result, gold futures eased in overnight screen trading, Meir continues, but “things could always change if the anticipated technical recovery in oil and equities turns into yet another bull trap.”
By Allen Sykora of Kitco News; asykora@kitco.com
Commerzbank: Gold Maintaining Role As Safe Haven Amid General Market Turbulence
Thursday January 21, 2016 08:17
Gold has lived up to its reputation as a safe haven amid recent market volatility, says Commerzbank. Amid recent risk aversion among market participants, the metal climbed over $1,100 per ounce. “Gold in euro terms rose to as much as €1,015 per troy ounce yesterday and is continuing to trade at roughly this level this morning,” Commerzbank says. “The ongoing turmoil on the financial markets and the fact that inflation remains subdued in the U.S. make a further rate hike by the U.S. Federal Reserve appear increasingly unlikely. As can be seen from the Fed fund futures, the market now believes there is only a 22% probability of the Fed raising interest rates again in March.”
By Allen Sykora of Kitco News; asykora@kitco.com
