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INTL FCStone: ECB, Fed Meetings Could Be Key For Gold During March

European Central Bank and Federal Open Market Committee meetings in March could have a big impact on gold, says INTL FCStone. “Going into March, we have two critical central-bank meetings coming up, with the ECB and the Federal Reserve both on deck,” the firm says. “We suspect that each will maintain a very accommodative stance, meaning that gold could benefit going into March, but we should also caution that any dovish surprises could also reinvigorate the equity markets, in which case gold could struggle. It remains to be seen which of these countervailing forces prevails, but in the meantime, we would be somewhat reluctant to be chase gold here given that it is nearing key resistance between $1,250 and $1,260.”

By Allen Sykora of Kitco News; asykora@kitco.com

 

TD Securities: Disappointing Jobs Report, Equity Reversal Would Drive Gold Higher


Tuesday March 01, 2016 08:43

Gold could benefit if Friday’s U.S. jobs report is weak and there a reversal of recent equity-market strength, says TD Securities. “Gold/silver should continue to benefit from reduced hawkish expectations out of the Fed, as data, while sometimes surprising, for the most part has slowed outside of just the manufacturing decline,” TDS says. Gold could potentially fall back toward $1,200 an ounce if there is strong U.S. nonfarm payrolls growth of more than 200,000 jobs, TDS says. However, TDS says its macro strategy team looks for another soft report instead, and such data could enable the yellow metal to shoot through its recent highs amid “already shaky market expectations about whether the Fed has enough to keep a bias toward further rate hikes.” As long as some central banks pursue negative interest rates and there remain calls for more easing from banks such as the European Central Bank, Bank of Japan and People’s Bank of China, gold and silver “will continue to benefit from persistently low real yields,” TDS concludes.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Mitsubishi: Palladium Has Potential To Bounce On Short Covering


Tuesday March 01, 2016 08:43

Palladium remained on the defensive last week but could get a short-covering bounce, especially if U.S. auto sales due out Tuesday should be strong, says Mitsubishi. Palladium last week hit a six-week low and 23-month low on a comparative basis with sister metal platinum. “Good news on the U.S. economy, if some is forthcoming this week, ought to be positive for palladium from a fundamental demand point of view, as should reports of another strong month of U.S. car sales…,” Mitsubishi says. “Whether this moves the needle on investor sentiment remains to be seen but we note that gross Nymex short positions are now at a rather extended 70% of the all-time high (compared with gross longs at 47%) and that short covering could benefit palladium if a move to new lows does not materialize.”

By Allen Sykora of Kitco News; asykora@kitco.com

 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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