Make Kitco Your Homepage

Gold Could Face 'Further Punishment' - FXTM

Kitco News

Gold could decline even further after hitting a seven-week low on Tuesday, says Lukman Otunuga, research analyst at FXTM. “The yellow metal dipped below $1,270 during early trading, and it looks like further punishment is in store, as firming U.S. rate hike expectations buoy the U.S. dollar,” Otunuga says. One of the main elements pressuring gold is a risk-on environment, which is encouraging investors to choose riskier assets. “With prices securing a solid monthly close below the $1,300 psychological level, and extended losses towards $1267, bears are in the vicinity,” Otunuga points out. From a technical perspective, gold’s minor support level is at $1,267, followed by $1,250.

By Anna Golubova of Kitco News; agolubova@kitco.com

 

TDS: Platinum May Outperform Palladium ‘From A Value Perspective’

Tuesday October 03, 2017 09:04

Palladium is still holding a rare premium over platinum, but the latter may well regain the upper hand for a while, says TD Securities. Both metals are used for automotive catalysts, with palladium going into gasoline-powered cars and platinum those fueled by diesel engines. Palladium prices topped those of platinum for the first time last week since 2001. However, shortly before 9 a.m. EDT, spot palladium’s premium had narrowed to less than $2 an ounce, with palladium trading at $909 and platinum at $907.35. “Palladium bested its much better-known peer metal platinum for the first time in 16 years last week, as investors searched for ways to bet on trends in the automotive market and take a position in a precious metal which is not very much correlated to gold,” TDS says. European car owners have started to switch to gasoline-powered vehicles because of concerns over particulate matter production in diesel ones, while palladium also benefits from the large gasoline-based auto markets of the U.S. and China, TDS explains. However, at some point, fabricators may start switching metals. “Simultaneously, most miners are losing money and the demand outlook continues to be positive for platinum, as Europe recovers from the lows,” TDS says. “At the same time, U.S. and China demand growth is likely to moderate. Just from a value perspective, it is likely that platinum should outperform for a while.”

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

 

CME Group: Sept. Metals Volume Jumps 72%; 3Q Posts Record

Tuesday October 03, 2017 09:04

CME Group reports that average daily metals volume surged 72% from a year ago in September and hit a quarterly record of 611,000 contracts in the July-September period, a year-on-year gain of 42%. Quarterly volume hit record highs for gold, copper and platinum futures and options, the exchange operator reports. September volume averaged 660,000 contracts per day, up from 383,000 in the same period a year ago and 622,000 in August. CME group reports record monthly average daily volume in gold futures of 366,000 contracts, up 88% from a year ago, while gold options daily volume of 52,000 contracts was up 70 percent. September average daily volume in silver futures and options rose 37% year-on-year to 93,000 contracts.

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

 

MKS: Absence Of Chinese Buying, Strong Dollar Pressure Gold

Tuesday October 03, 2017 08:17

Gold Prices are just below their 100-day moving average after the metal remained under pressure in Asia-Pacific trade while “struggling to find bids in a market void of Chinese demand,” says Sam Laughlin, senor precious-metals trader with MKS (Switzerland) S.A. Chinese market participants are sidelined for a week-long national holiday. Further, continued strength in the U.S. dollar is pressuring gold, Laughlin says. “With U.S. equities hitting fresh all-time high prints on Monday and the dollar king once again, risk is well and truly back on the table and the precious complex, notably gold, is suffering as a result,” Laughlin says. Spot gold’s 100-day moving average is a little over $1,272 an ounce. The metal was down 80 cents to $1,269.65 shortly after 8 a.m. EDT. “Should gold continue to trade lower, the next target will be the 200 DMA and key psychological level around $1,250,” Laughlin says.

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

 

Walsh’s Lusk: Gold May Draw Short Covering Ahead Of Jobs Report

Tuesday October 03, 2017 08:17

Gold futures, under pressure since hitting a one-year high on Sept. 8, may get a reprieve soon as some traders start to square positions ahead of the monthly U.S. jobs report due out Friday, says Sean Lusk, director of commercial hedging with Walsh Trading. Shortly after 8 a.m. EDT, Comex December gold was $3.20 lower to $1,272.60 an ounce and hit a low of $1,271 that was its weakest level in nearly two months. “I anticipate that gold and silver may see some bottoming action and short covering into the non-farm payroll number on Friday due to the enormity of that report,” Lusk says. “Even though things remain somewhat quieter with North Korea in the interim, the war of words between both leaders continued this weekend. I don’t think this situation will just go away, with the likely scenario of another missile test by the rogue nation coming soon. If that happens, look for some safe-haven buying in both gold and silver.”

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.

Precious Metal Charts

Follow Kitco News