Market Nuggets
SP Angel: Gold Range-Bound Amid Offsetting Factors
Gold prices are flat amid offsetting factors, says commodities brokerage SP Angel. Investors are sidelined with a strong U.S. dollar after seven weeks of gains and U.S. data bolstering the Federal Reserve’s case to lift interest rates again next week, analysts say. “Flat trading mirrors the lack of volatility in the precious metal, with a gauge of 30-day volatility in Comex futures sinking to the lowest level in four months, standing around 9%,” SP Angel says. Analysts later add: “Gold prices have faced combating indicators, with a strengthening dollar being bearish for gold and global geopolitical risks bullish, making it difficult for bullion to move out of its current range.” Just before 8 a.m. EDT, spot gold was 60 cents softer at $1,290.90 an ounce.
By Allen Sykora of Kitco News; asykora@kitco.com
Commerzbank: Palladium Has $100 Premium Over Platinum
Tuesday June 5, 2018 08:07
Auto-sales data help explain why palladium has a $100-per-ounce price premium over platinum, says Commerzbank. “We believe one part in this was played by the solid vehicle sales in the U.S. in May that were reported late last week,” the bank says. “Because the U.S. market is gasoline-dominated, palladium is likely to have profited from this.” The bank was referring to the fact that gasoline-powered vehicles use palladium for catalytic converters, while diesel-powered ones require platinum. Commerzbank points out that data from the German Association of the Automotive Industry (VDA) shows that sales of diesel cars in the country were some 27% lower year-on-year. In May, diesel cars accounted for only 31% of all new car registrations, compared to more than 40% a year ago. “This weighed on platinum, which is used in the production of diesel auto catalysts,” Commerzbank says. Just before 8 a.m. EDT, spot palladium was down $7 to $983 an ounce, while spot platinum was $7 weaker to $893.
By Allen Sykora of Kitco News; asykora@kitco.com
Commerzbank: ETF Gold Outflows Come To Halt
Tuesday June 5, 2018 08:07
Hefty outflows from global exchange-traded gold funds came to a halt on Monday, points out Commerzbank. “Gold ETFs lost nearly 14 tonnes [of gold holdings] last Thursday and Friday, thereby reversing all of the inflows since the start of May,” the bank says. “Yesterday saw a slight inflow of 1.4 tonnes.”
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