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INTL FCStone: Rising Bond Yields Pressure Gold

Kitco News

Rising U.S. bond yields have left gold and silver modestly lower again although they are not being hit as hard as they were Wednesday. “We think the precious group is under pressure on account of rising bond yields, considering that the U.S. economy is growing at a much faster clip than expected, this just as a tax-reform deal looks like it will get done,” says Edward Meir, commodities consultant with INTL FCStone. As of 8:20 a.m. EST, Comex February gold was $3.50 softer at $1,282.70 an ounce, while March silver was down 5.6 cents to $16.505. The yield on 10-year U.S. Treasury notes rose as high as 2.395% Wednesday, the highest level since Nov. 14.

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

 

SP Angel: Gold In ‘Narrowest Monthly Range In 12 Years’

Thursday November 30, 2017 08:06

Gold remains in its tightest monthly range in a dozen years despite the recent pullback in the yellow metal, says commodities brokerage SP Angel. The metal fell Wednesday after congressional testimony from Federal Reserve Chair Janet Yellen saying that economic growth was broad based, which SP Angel says left investors more convinced that interest rates will go higher. Further, growth in third-quarter gross domestic product was revised higher. “However, underlying geopolitical tensions surrounding North Korea’s insistence to develop its nuclear weapons program and ‘continued acts of aggression’ give support to the safe-haven asset,” SP Angel says. “A lack of clear drivers has kept gold between $1,265 and $1,300 an ounce throughout November, its narrowest monthly range in 12 years.”

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

 

Commerzbank: Gold Held Back By Yellen Comments, Expected Tax Vote

Thursday November 30, 2017 08:06

Gold has not been able to recover from Wednesday’s sell-off, with Commerzbank citing optimism on the U.S. economy and prospects for tax reform. The Comex February futures have been as low as $1,282.30 so far Thursday, the weakest level in more than a week. “The fact that gold is not recovering this morning is due partly to the testimony given before a U.S. Congress committee by the still-incumbent Fed Chair Janet Yellen yesterday, and partly to a vote on the tax reform that will be taking place in the U.S. Senate this week,” Commerzbank says. “Yellen had expressed optimism about the ongoing development of the U.S. economy, saying that this justifies further rate hikes. A vote on the draft tax-reform bill will probably be held in the Senate before this week is out. Unlike the attempt to abolish Obamacare, Republicans this time may well reach compromise within their own ranks. That said, a number of points have yet to be resolved.”

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