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Commerzbank: Silver Stronger Than Gold So Far In October

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Silver has outperformed gold so far in October, says Commerzbank. As of 8:28 a.m. EDT, Comex December gold was down $1.50 for the day to $1,292.30 an ounce, while December silver  eased 4.2 cents to $17.165. Still, gold had gained 0.6% since Sept. 30, while silver was up 2.9% for the month. “Silver regained the $17-per-troy-ounce mark yesterday but then failed to exceed the technically important 200-day moving average,” Commerzbank says. “Silver has outperformed gold in October so far. The gold/silver ratio has fallen from just shy of 77 at the beginning of the month to a good 75 at present.”

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

 

TDS: ‘Platinum Should Outperform Palladium For A While’

Wednesday October 11, 2017 09:08

TD Securities looks for platinum to start outperforming sister metal palladium. Both metals are used in auto catalysts, with platinum going into diesel-powered cars popular in Europe, while palladium goes into the gasoline-powered vehicles that make up the bulk of the U.S. and Chinese markets. Palladium recently gained a premium over the platinum price for the first time since 2001. However, TDS says, this means fabricators may well start to substitute one metal for another in some uses. “Substitution away from palladium and into platinum may also be driven by security of supply concerns— auto companies may want to assure supply of catalyst metals for the long term,” TDS says. “At the same time, vehicle demand in Europe should continue to gain, tightening the platinum market. As such, after a long period of underperformance, these considerations could tighten the platinum market, generating a stronger performance relative to palladium. The highly gold correlated platinum may also get a boost from a more robust gold market into 2018, as the Fed is unlikely to tighten as much as the dot plots suggest.” Further, TDS points out that most platinum producers are operating in the red, suggesting that a modest tightening of supply/demand fundamentals will lead to higher prices. “At the same time, U.S. and China auto demand growth is likely to moderate, suggesting a relative loosening of palladium market conditions,” TDS says. “From a value perspective, it is likely that platinum should outperform palladium for a while.”

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

 

FXTM: U.S. Interest-Rate Jitters Could Limit Any Gains By Gold

Wednesday October 11, 2017 09:08

Concerns about U.S. interest rates may cap gold’s upside, says Lukman Otunuga, research analyst at FXTM. The metal rose on Tuesday as a “vulnerable” U.S. dollar, political risk in Spain and North Korean tensions boosted investor interest. “While uncertainty and geopolitical risk are likely to stimulate appetite for gold in the short term, gains remain capped by rising expectations of another U.S. interest-rate increase in December,” the analyst says. Much of Wednesday’s focus will be on release of minutes from the September meeting of the U.S. Federal Open Market Committee. Otunuga says this “will have the ability to punish gold, if hawks are in the vicinity.” On the technical charts, the analyst says sellers are “still in firm control” below the psychological $1,300-an-ounce level. “A breakdown back below $1,280 is likely to create a path back towards $1,267,” the analyst continues. “In an alternative scenario, a daily close above $1,290 should encourage an appreciation to $1,300.”

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.

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