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Commerzbank: Gold has 10% Gain So Far In 2017

Kitco News

Gold remains roughly 10% higher for the year, while palladium is the big winner in the precious-metals sector with roughly a 50% rise, says Commerzbank. Gold rose early in the year, driven up by political uncertainty after U.S. President Trump took office and ahead of the presidential elections in France, Commerzbank says while recounting the year. The metal peaked in late summer just shy of $1,360 per ounce, which was a gain of 18% since the start of the year. “This was due primarily to the depreciation of the U.S. dollar, which was suffering from Trump’s unpredictability, and falling Fed rate-hike expectations,” Commerzbank says. “As stock markets soared to ever new record levels, and the U.S. tax reform began to take shape, interest in gold dwindled in the autumn. As a result, gold shed some of its gains again and is up by only approximately 10%.” Silver has lagged gold. “Palladium has been this year’s high-flyer, however,” Commerzbank says. “Having soared by more than 50% to a 17-year high of just shy of $1,040 per troy ounce, palladium has left not only the other precious metals but also all of the commodities we track far behind. Its price has been driven by robust demand for cars with gasoline engines, which was further increased by the diesel scandal.” In fact, palladium has had a premium over sister metal platinum since September, which had not happened since 2001. As of 8:02 a.m. EST, spot gold was down $1.05 an ounce at $1,264.20, compared to $1,151.55 at the end of 2016.

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

 

MKS: 200-Day Average Key Pivot Point For Gold Prices

Thursday December 21, 2017 08:15

The 200-day moving average lies just above the gold market and is offering chart resistance, points out Sam Laughlin, senior metals trader with MKS (Switzerland) S.A. The metal was bid up early in the Asia-Pacific region before running into selling. The on-shore premium in Shanghai remained elevated around $12 relative to London pricing, he says. “Price action remained buoyant throughout the afternoon, knocking against $1,268, however [was] unable to make headway through the figure,” Laughlin says. “The tide turned once European names began to filter in late in Asia, sending gold sharply lower toward opening levels to pare back the earlier gains. The 200 DMA around $1,269.50 is currently weighing upon any attempts higher, and this level will act as an important pivot point over the near term.” As of 8:02 a.m. EST, spot gold was down $1.05 an ounce at $1,264.20 after a high for the day of $1,268.30.

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

 

SP Angel: Gold Prices May Get Geopolitical Lift

Thursday December 21, 2017 08:15

Gold, underpinned lately by a pullback in the stock market after congressional passage of U.S. tax cuts that had already factored into markets, may get a boost from geopolitical tensions in the Middle East, says commodity brokerage SP Angel. “The rising precious metal may factor in geopolitical tensions as U.S. President Donald Trump threatened to cut off financial aid to countries that vote in favor of a draft United Nations resolution calling for the United States to withdraw its decision to recognize Jerusalem as Israel’s capital,” SP Angel says. “The president’s decision to recognize Jerusalem as the capital not only violates several United Nations Security Council resolutions, but also desecrates 70 years of American policy in the Middle East. Rejecting any claim from Palestine has exacerbated tensions across the Muslim world at the expense of U.S. geopolitical and economic interests.” 

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