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Achtung Baby!

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(Kitco News) - This week, Deutsche Bank was under pressure after a Bloomberg report said a small number of hedge funds were trimming their exposure at the German bank.

Newsletter Sign Up The stock initially dropped after reports surfaced, which suggested that 10 hedge fund clients are reducing their dealings with Germany's biggest bank. But in a turn of events, shares of Deutsche Bank jumped 14% Friday after reports that the bank may be near a $5.4-billion settlement with the U.S. Department of Justice. If the reports are true, the settlement would be well below the reported $14 billion opening bid by the DOJ in its talks with Deutsche.

The International Monetary Fund had delivered a harsh warning on Deutsche Bank suggesting that it might be the "most important net contributor to systemic risks in the global banking system." 

Gold initially rose on Friday as concerns about the bank triggered a sharp selloff in equities. But the yellow metal later fell after shares of Deutsche Bank rebounded. Spot gold was down 0.3% at $1,316.90 an ounce by 1:24 p.m. ET. December gold futures were down 0.6% at $1,317.17 an ounce.

Kitco News is back from the Mines and Money conference in Toronto – it marked the first time this show took place in North America. In contrast to conferences of years past, most speakers we interviewed were very bullish. In fact, in a panel I moderated featuring Robert Cohen, VP & Portfolio Manager, Dynamic Funds; Ani Markova, Vice President and Portfolio Manager, AGF Investments; Trevor Turnbull, Director, Gold & Precious Minerals - Global Equity Research, Scotia Capital and Frank Holmes, CEO of U.S. Global Investors – all were very bullish gold.

We also caught up with the likes of market expert David Morgan who told us, that if an investor is looking for safety, the best bets are to look at gold and silver. Morgan said he expects sideways trading for gold and silver ahead of the U.S. election and potential Fed tightening towards the end of the year. After that, he expects the metals to rally.

And precious metals’ historian Don Coxe says he expects gold will continue to be one of the best performing assets, especially because he doesn’t expect the Fed to raise interest rates in December. “It’s a somewhat higher probability that Santa Claus will come,” he said.

This week also marked the first Clinton-Trump debate, it’s been YUGE-ly covered so we’ll refrain from adding comment…but let us know your thoughts!

We hope you enjoyed the coverage from Mines and Money!

See you next week,

By Daniela Cambone of Kitco News; dcambone@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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