Make Kitco Your Homepage
Market Nuggets

A New Trend Is Born, And It'll Be Good For Gold - Trend Forecaster

A new trend has emerged in the United States, a trend that will prove to work in gold’s favor, says Gerald Celente, longtime trend forecaster and publisher of the popular Trends Journal. “The Donald Trump, President of the United States of America, Trend has just been born,” he notes in an email Thursday. “And with each passing day, social tensions rise, equity markets tremble and geopolitical uncertainty grows with each new executive order, accusation, proclamation and tweet.” To Celente, this is helping gold as a safe-haven asset. “[W]e maintain our forecast of a limited downside risk for gold and a strong upside potential during this administration,” he says. “And, of all the world’s currencies and commodities, gold outshines them all as the ultimate safe-haven asset in times of high anxiety, deep concern, social unrest and geopolitical instability.” Gold prices rallied solidly higher Thursday with April Comex futures last at $1,218 an ounce, up 0.8% on the day.

By Sarah Benali of Kitco News; sbenali@kitco.com

 

HSBC: U.S. Mint Jan. Data Suggest ‘Positive Gold-Coin Demand’

Thursday February 02, 2016 10:57

HSBC describes demand for U.S. Mint coins last month as “positive,” with sales sharply higher from December although modestly lower compared to the same month a year ago. “The U.S. Mint reported overall positive gold-coin demand,” HSBC says. For January, the Mint’s website lists sales of 117,500 ounces of American Eagle gold coins, several times the 29,000 ounces sold in December although a little below the 124,000 ounces sold in January 2016, HSBC points out. “Although silver coin sales for January are multiple levels higher compared to December 2016 at 5,127,500 ounces, they are down from the 5,954,500 ounces sold in January last year,” HSBC says. The December 2016 total was 240,000 ounces. The U.S. Mint reports January sales of 20,000 ounces in its new platinum coins.

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

 

FXTM’s Otunuga: Gold Bulls ‘In Control’ Above $1,195/Oz

Thursday February 02, 2016 10:17

Gold bulls have the upper hand as long as the metal remains above the $1,195-per-ounce area, says Lukman Otunuga, research analyst at FXTM. “A vulnerable dollar coupled with the persistent [U.S. President Donald) Trump uncertainties has bolstered gold’s safe-haven allure...,” Otunuga says. “This yellow metal seems to be back in fashion in the short term with further inclines expected as investors scatter from riskier assets to safety. Although there remains a threat of Friday’s NFP [U.S. nonfarm payrolls] capping gains on gold, bulls should remain in control above the $1,195 higher low. Technical bullish traders could utilize the breakout above $1,220 to propel gold prices higher towards $1,230.” As of 10:12 a.m. EST, spot gold was around $1,220.50.

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

 

CME Group Metals Volume Rises Sharply In January

Thursday February 02, 2016 10:17

CME Group metals volume rose by 30% in January, compared to a year ago, the exchange operator reports. Average daily volume last month was 525,000 contracts, compared to 405,000 in January 2016. Sequentially, last month’s metals volume rose 46% from 359,000 contracts daily in December. Gold futures average daily volume grew 38% year-on-year to 303,000 contracts in January, while the same for silver futures was up 40% to 71,000 contracts. On the basis of a rolling three-month average, metals volume was 534,000 contracts daily for the period ending in January, CME Group reports. This compares to 488,000 for the three-month period ending in December, 496,000 for the period ending in November and 395,000 for the period ending in October.

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

 

INTL FCStone: Gold Pushes Higher As Dollar Index Weakens

Thursday February 02, 2016 09:51

Gold prices are charging higher after erasing a loss in Wednesday’s session, says INTL FCStone. As of 9:36 a.m. EST, Comex April gold was up $16.90 for the day to $1,225.20 an ounce, after having traded as low as $1,199.70 on Wednesday. “Another market on the move is gold; the precious metal erased roughly $9/ounce of losses in yesterday's session to finish roughly unchanged on the back of the Fed statement and has added another $17 today in the wake of dollar weakening,” the firm says. The March dollar index was down 0.278 point to 99.330. Gold “might also be benefitting from talk coming out of the U.S. National Security Advisor yesterday who highlighted the Iranian missile tests that were conducted this week and put Iran ‘on notice’ – whatever that means.” The rhetoric also sent oil prices higher Wednesday, INTL FCStone adds.

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

 

Commerzbank: Gold Inflows Into ETFs Highest In Nearly Five Months

Thursday February 02, 2016 09:51

Holdings in gold-backed exchange-traded funds posted their biggest one-day gain in nearly five months on Wednesday, says Commerzbank. “The gold ETFs tracked by Bloomberg saw inflows of 10.9 tonnes yesterday…,” the bank says. The ETFs trade like a stock but track the price of the commodity, with metal put into storage to back the shares.

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

 

All of This is Working In Gold’s Favor – RBC’s Gero

Thursday February 02, 2016 09:10

Gold is on a tear Thursday, with prices rallying to 2.5-month highs, as RBC’s George Gero highlights several factors in the metal’s favor right now. “The eurozone recently reported inflation at its highest in four years, Greece is back in headlines on loans, India and Venezuela are dealing with currency woes, and [there is] political uncertainty,” he says in a note Thursday morning. “All [these factors] contribute to higher gold.”  As for Wednesday’s Federal Open Market Committee meeting, Gero says the statement  provided some support to gold despite the central bank’s upbeat outlook on the U.S. economy. The Fed did not suggest accelerating the pace of interest-rate hikes and that is helping gold, Gero explains. “Gold is very sensitive to rates and inflation mostly,” he says. April Comex gold futures last traded at $1,226.20 an ounce, up 1.5% on the day.

By Sarah Benali of Kitco News; sbenali@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.
kitco news