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INTL FCStone Is Now Direct Participant In LBMA Silver Auction

Kitco News

INTL FCStone Ltd.’s Precious Metals Division is joining the London Bullion Market Association (LBMA) silver auction as a direct participant, INTL FCStone says. “Becoming a direct participant to the LBMA silver auction is an important step in INTL FCStone’s drive to enhance our client offering,” states Barry Canham, global head of INTL FCStone Ltd’s Precious Metals Division. The administration of the Daily LBMA Silver Price benchmark auction is being carried out by ICE Benchmark Administration. INTL FCStone Ltd becomes the ninth firm to join the auction process. This comes just six months after INTL FCStone Ltd's Precious Metals division became a direct participant in the LBMA gold auction. “Being a member of both the IBA gold and silver auctions furthers our growth and demonstrates our commitment to our customer base, as well as cements our leadership position within the global bullion market,” Canham adds.

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

 

Analysts: Gold Premiums Point To Demand In China, India

Tuesday October 10, 2017 08:12

The gold premium is reflecting on improved demand in the key gold-consuming nations of China and India, analysts say. Gold demand appears to be picking up again in India after a prolonged dry spell, says Commerzbank. Analysts cite Platts data showing that gold prices in India traded at a premium to world market prices at the end of last week for the first time in nearly three months. “The stronger Indian gold demand is probably attributable to the upcoming Diwali holiday that will be celebrated next week – a festival that traditionally sees a lot of gold given as gifts,” the bank says. Meanwhile, MKS (Switzerland) S.A. points out that the premium has risen in China. China’s currency strengthened against the U.S. dollar. “The currency moves saw the on-shore premium relative to loco London gold add further gains, increasing toward $14 from around $10 on Monday to buoy spot demand to a $1,288.10 high,” MKS says. Spot gold later moved as high as $1,291.85 and was up $8.85 to $1,292.20 as of 7:40 a.m. EDT.

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

 

Commerzbank: Technical Buying, Bargain Hunting Boost Gold

Tuesday October 10, 2017 08:12

Gold’s bounce has been aided by technical-chart buying and bargain hunting, says Commerzbank. As of 7:55 a.m. EDT, spot gold was $8.65 higher to $1,292 an ounce as the rally continued from a Friday low of $1,260.80 that was the metal’s weakest level since early August. The weaker U.S. dollar has helped gold’s rally, Commerzbank says. “What is more, gold had clearly been oversold beforehand, meaning that a technical countermovement was only a question of time,” the bank says. “In addition, a number of bargain hunters presumably saw the low prices as attractive buying opportunities. Another role was likely played by the return of Chinese traders and investors after the holiday week. Gold ETFs [exchange-traded funds] have also been in demand again over the last two days, recording inflows of a good seven tonnes.”

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

 

SP Angel: Geopolitical Worries Supporting Gold Prices

Tuesday October 10, 2017 08:12

Gold remains underpinned by geopolitical worries, says commodities brokerage SP Angel. “Geopolitical tension continue to rise as news of U.S. President Donald Trump’s Asia tour now includes the highly contentious, heavily fortified demilitarized zone between North and South Korea to deliver a strong message to Pyongyang over its nuclear weapon development program,” SP Angel says. “The diplomatic standoff between the USA and Turkey [was] also heightened following the arrest of a Turkish citizen employed at the U.S. consulate for alleged involvement in the July 2016 failed coup against the Turkish President Recep Tayyip Erdogan. Gains to gold were capped, however, as the dollar index remained steady ahead of the expected Federal Reserve interest-rate hike this year.” Comex December gold was $9.30 higher to $1,294.30 an ounce as of 7:53 a.m. EDT.

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

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