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INTL FCStone: Gold May Draw Chart-Based Buying On Price Dips

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Gold is softer around mid-morning Wednesday, but after recent strength, price pullbacks could be seen as buying opportunities, says Edward Meir, commodities consultant with INTL FCStone. As of 10:11 a.m. EDT, Comex December gold was $4.80 lower to $1,314.10 an ounce and September silver was down 31 cents to $17.395. Platinum and palladium were also softer. “However, the entire group was sharply higher earlier in the week on account of the North Korean missile tests and a weaker dollar,” Meir says. “Technically, gold has also busted through $1,300/ounce triple-top resistance rather decisively and so we could see dips rather well supported by chart-based buying.”

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

 

RBC’s Gero: Gold Traders Take Some Money Off The Table

Wednesday August 30, 2017 09:24

Comex gold has eased as traders exit some of their bullish positions, booking profits after the recent run-up in prices, suggests George Gero, managing director with RBC Wealth Management. As of 9:17 a.m. EDT, Comex December gold was $6.10 lower to $1,312.90 an ounce one day after hitting a $1,331.90 peak that was its strongest level since November. The market came into the New York session with a softer tone, then eased some more after an upward revision in U.S. gross domestic product and a stronger-than-forecast rise in August private-sector employment reported by payrolls processor ADP. “Gold traders [are] taking some [money] off the table this morning…after seeing GDP and jobs numbers,” says Gero. He adds, however, that the Hurricane Harvey disaster in Houston may change the economic picture. Meanwhile, the U.S. dollar recovered some of its recent weakness, Gero notes. The euro is down to $1.9278 from $1.19676 late Tuesday.

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

 

Standard: Palladium Could Reach Temporary Parity With Platinum

Wednesday August 30, 2017 09:24

Standard Chartered still sees potential for palladium prices to match platinum before the end of the year. The spread between platinum, which historically has been more expensive, over sister metal palladium has been below $50 lately, although it was around $60 Wednesday morning. “We still think that the two could trade at parity in the coming months, particularly if platinum prices lose steam, but this would likely be temporary rather than palladium trading at a sustained premium,” Standard Chartered says. Data from the Commodity Futures Trading Commission shows that gross shorts in platinum have fallen by some 21,000 lots over the past five weeks, while and net fund bullish positioning in palladium as a percentage of open interest has reached an all-time high of 69%, Standard notes.

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