Market Nuggets
Nichols: Gold In Range For Now But In ‘Technically Stronger Position’
Gold could pull back or meander in a range for a while but Wednesday’s sharp gains left the market in a “technically stronger position” from which to eventually rally again, says Jeffrey Nichols, managing director of American Precious Metals Advisors. “For the near term, we see gold once again in the $1,220 to $1,250 trading range, with relatively strong support beneath the market and relatively strong resistance at the top — all the time waiting for some event or development to knock the price one way or the other,” he says. “As Trump-related safe-haven demand waned, institutional traders and speculators rushed in to book their profits before the next guy robbed them of the opportunity. From where I stand, it looks like there is significant upside potential -- as illustrated by gold’s latest swift advance -- but, at the same time, downside risk seems fairly limited.” For now, he says, a “relatively small number” of institutional investors appear to be driving gold, with retail demand for small bars and coins subdued, except for Asia. “When these players return to the markets here and abroad, we will know the bull market is coming to life again,” Nichols concludes.
By Allen Sykora of Kitco News; asykora@kitco.com
Commerzbank: Platinum, Silver ETF Holdings Higher In Silver
Friday May 19, 2017 08:48
Holdings of platinum and silver by global exchange-traded funds are higher so far this month, reports Commerzbank. “On average, nearly 50 tonnes per day have flowed into the silver ETFs since the beginning of the month (642 tonnes in total),” analysts report. “Platinum ETFs have seen inflows of a good 86,000 ounces since the beginning of the month. By contrast, palladium ETFs have seen slight outflows and holdings in gold ETFs remained virtually unchanged.”
By Allen Sykora of Kitco News; asykora@kitco.com
FXTM: ‘Bulls Still In Control’ Of Gold Market Amid Uncertainty
Friday May 19, 2017 08:48
Gold remains well supported and Thursday’s pullback was nothing more than profit-taking, says FXTM research analyst Lukman Otunuga. The analyst also notes that as of early Friday morning, the precious metal was on track for the biggest weekly gain since April as political unrest in Washington weighed heavily on risk sentiment. “Although the metal experienced a sharp technical correction on Thursday, this had nothing to do with a change of bias,” Otunuga says. “It came down to profit-taking and a slightly appreciating U.S dollar. Bulls still remain in control despite the depreciation, with prices destined to appreciate higher as uncertainty quickens the flight to safety. From a technical standpoint, buyers need to secure a daily close above $1,260 for an incline higher towards $1,275.”
