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UBS: Investors Have Opportunity To Buy Gold At ‘More Attractive Levels'

UBS says any further weakness in gold may be a buying opportunity. The metal has fallen some $90 an ounce from its recent highs, leaving it not far from $1,200 psychological support. The bank says it’s “understandable” that some investors might be hesitant to buy into weakness, considering recent gains in the U.S. dollar, equities back near the highs for the year, rising 10-year Treasury yields and financial markets pricing in an increased likelihood of Federal Reserve tightening since the start of last week. “However, our long-held view is that positions being put on this year are strategic in nature, and as such we would expect interest to hold some gold as a hedge against uncertainty would still be intact,” UBS says. “This suggests that those who had missed the move in January, and were unwilling to chase the market, should now have the opportunity to build gold exposure at more attractive levels.”

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

 

UBS Looks For Official-Sector Gold Buying To Continue But At Slower Pace

Friday May 27, 2016 9:04

UBS looks for central banks to remain net buyers of gold. Analysts cite International Monetary Fund data showing that for the year to date, Russia has bought 62 tonnes, China 46 and Kazakhstan 10. “The concentration of purchases creates a risk should gold strategies change,” UBS says. However, the bank continues, “our view is that these strategies are long-term in nature and therefore continue to expect net buying from the official sector, albeit at a slower pace.”

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

 

SocGen: Annual PGM Supply Deficits To Underpin Platinum, Palladium

Friday May 27, 2016 9:04

Societe Generale looks for future supply deficits to underpin platinum group metals. Analysts cite highlights of a recent report from the GFMS team of Thomsen Reuters, showing that mine supply was higher last year as South African production recovered from strikes, while physical investment fell. Nevertheless, supply risks are expected to re-emerge, Societe Generale says. “While shorter-term investors sold PGMs due to negative sentiment toward industrial commodities last year, longer-term investors appeared to remain bullish on the PGMs as evidenced by the resilience of retail investment,” the bank says. “Additionally, mine supply is not expected to increase meaningfully and even is expected to decline in the long term. These factors, plus expectations for continued growth in industrial demand, are expected to result in annual deficits in platinum and palladium markets, reinforcing our longer-term positive price prospects.”

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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