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Standard Chartered: June Lows Present Buying Opportunity In Gold

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Standard Chartered looks for gold weakness into next week’s meeting of the U.S. Federal Open Market Committee but also forecasts that any cycle lows in the price that will present a buying opportunity. Analysts note that gold regained $1,300 an ounce recently but has not been able to generate further upside momentum. “Investors appear to lack conviction in gold ahead of the June FOMC and European Central Bank meetings and the U.S. summit [with North Korea] in Singapore, but positioning is light, suggesting scope for upside risk,” Standard Chartered says. The bank says it looks for the U.S. dollar to resume a weakening trend, which tends to help gold. Meanwhile, Standard Chartered points out that local gold prices in India have fallen towards 30,500 rupees per 10 grams. “Should they fall towards INR 30,000/10g, we believe that the physical demand response is likely to be stronger,” Standard says. “We still expect further downside risk around the June FOMC meeting, but after the seasonally slow period, the good monsoon forecast [for India] bodes well for demand. We expect the ECB to end QE [quantitative easing] this year and raise rates in H1-2019, supporting EUR/USD, and in turn gold.”

By Allen Sykora of Kitco News;


Commerzbank: ETF Silver Holdings Rise This Week

Friday June 8, 2018 08:40

Interest in silver among exchange-traded-fund investors has picked up along with prices in the metal, says Commerzbank. “Silver outperformed gold once again yesterday, making good some more ground vis-Ă -vis gold,” the bank says. Still, while the metal threatened $17 an ounce on Thursday, it was unable to break out of its multi-month trading corridor, Commerzbank says. “All the same, investor sentiment towards silver has improved of late. The silver ETFs tracked by Bloomberg have so far seen inflows of 175 tonnes this week, whereas gold ETFs have recorded outflows,” the bank says. ETFs for precious metals trade like a stock but with metal put into storage to back the shares.

By Allen Sykora of Kitco News;


SP Angel: Silver To Outperform Gold In Near Term

Friday June 8, 2018 08:40

Silver could keep outperforming gold due to its role as an industrial metal, says commodities brokerage SP Angel. “Despite pulling back since yesterday’s trading, [an] improving demand outlook for silver has drawn the precious metal to the largest weekly gain since April 20, climbing 1.7%,” the firm says. Analysts cite a report this week from the consultancy Metals Focus saying that global demand is seen rising 2% to 970.5 million ounces in 2018, with a narrowing surplus tightening the market. “When industrial metals growth remains strong, silver can outperform, given 50% of consumption focuses on industrial markets,” Metals Focus says. “Further, given the stretched gold-to-silver ratio, silver is expected to continue to outperform in the near term.”

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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