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Gold Close Above $1,240 Would Be "Impressive" - Gartman

Gold is seeing strong support at the $1210-$1215 an ounce  level says newsletter writer Dennis Gartman. The famed market watcher explains in his Thursday edition of The Gartman Letter that there has also been strong resistance along the trend line that extends back into mid-March. “A close today above $1,240 would be most impressive, just as a close today below $1,210 would be most depressive,” he says.  Gartman adds, “Our ‘money’ is on the former however, and our enthusiasm would be greater were we to see signs that India is back in the gold market in size.” Kitco’s Spot Gold was last quoted up $17.30 at $1239.60.

By Daniela Cambone of Kitco News; dcambone@kitco.com

 

Analysts: Gold Futures Rise Sharply Amid Softer Dollar, Stock Market

Thursday April 7, 2016 09:30

Gold is sharply higher amid weakness in the U.S. dollar and stock-index futures. Around 9 a.m. EDT, Comex June gold was up $16.50 to $1,240.30 an ounce. The June S&P 500 futures were down 12.20 points. The euro was marginally higher against the dollar, but the greenback hit its lowest level against the Japanese yen since October 2014. Gold’s “rally today is all about the dollar and dovish Fed,” says George Gero, managing director with RBC Wealth Management. He later adds that the stock-market rally has stalled, so “gold acts once again as expected by traders.” Janet Mirasola, managing director of the metals group with Wells Fargo Securities LLC, says gold is “catching a bid in reaction to currency moves and the fear-factor trade.” Commerzbank says the late-Wednesday release of minutes from the last Federal Open Market Committee meeting show officials likely to adopt a cautious approach to their rate-hiking cycle. “This makes gold attractive,” Commerzbank says. “The gold price is presumably also finding support from the ‘no’ vote in the Dutch EU (European Union) referendum. Although this ‘only’ concerned the EU-Ukraine Association Agreement, and although the referendum is not binding, it can be regarded as a test of sentiment 2½ months ahead of the Brexit referendum in the U.K. (on leaving the EU).” Also, there was good gold buying out of both China and India during Asian trading hours, adds Sam Laughlin, trader with MKS Precious Metals (Australia).

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

 

HSBC: ‘The Longer The Hikes Are Delayed, The Better For Gold’

Thursday April 7, 2016 09:30

HSBC says the longer the Federal Open Market Committee holds off on hiking U.S. interest rates, the better this will be for gold. Minutes of the March meeting, released late Wednesday, show officials were split on the timing of rate increases, HSBC says. The minutes signaled that members expect to raise rates twice in 2016, analysts say. “But there is no clear indication of the timing of the likely hikes,” HSBC says. “This is crucial for gold. The longer the hikes are delayed, the better for gold prices.” The Fed minutes showed many members in favor of raising rates but with some seeing “appreciable” global risks, which need to be considered, HSBC says. “The split at the Fed seems to be on the timing of a rate rise, not the need for one,” the bank continues. “The minutes highlighted other disagreements, with policymakers differing over whether the U.S. is close to full employment and how serious and sustainable is the recent pickup in inflation.”

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

 

TDS: Potential South African Labor Issues Could Further Underpin Platinum

Thursday April 7, 2016 09:30

Platinum could get a boost from potential labor strife in the key producing nation of South Africa, says TD Securities. As of a late-Wednesday research note, TDS points out that the metal is up some 16% from the January low. The firm recommended a bullish trade back on Feb. 4, when platinum was at around $909 an ounce, listing a target of $1,025. TDS says it maintains this trade idea due to continued uncertainty about another Federal Reserve rate hike and potential for safe-haven buying of precious metals tied to a June vote on the U.K. leaving the European Union.  “But now, it looks likely that target may be reached faster than previously thought as a result of the market noticing pending labor instability in South Africa's Rustenburg platinum belt,” TDS says. “Given that the existing labor agreement between platinum miners and mining companies is scheduled to end by the end of June, with negotiations starting over the next few weeks, the news that South Africa's Association of Mineworkers and Construction Union has given notice earlier this week that it is launching an indefinite strike action against Sibanye Gold is starting to focus the market on South African production risk.” Spot platinum was trading around $955 an ounce just before 9 a.m. EDT. 

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

 

 

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