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Commerzbank: Swiss Aug. Gold Exports Rise; India, China Buying

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Swiss gold exports picked up in August, says Commerzbank. Analysts cite data from the Swiss Federal Customs Administration data showing that gold shipments rose 30% month-on-month to a 14-month high of 150.5 tonnes. “Significantly more gold was shipped to China and India in particular, which points to reviving demand in these two leading gold-consumer countries,” Commerzbank says. Swiss gold exports to India rose to 39.5 tonnes, the most since May 2017. “This is consistent with the higher gold imports reported by the Indian Ministry of Finance,” Commerzbank says. “The current debate about a possible increase in gold import duty could drive demand even higher, at least in the short term.” Meanwhile, Swiss gold exports to China climbed to 44.3 tonnes in August, the second-highest level this year. “This contrasts with a slump in deliveries to Hong Kong, however, with the result that China and Hong Kong combined saw imports that were well below the average monthly level of the first half of the year,” Commerzbank adds.

By Allen Sykora of Kitco News;


SP Angel: Gold Steady but Bulls See ‘Encouraging Signs’

Thursday September 20, 2018 08:05

Gold bulls see “encouraging signs” even with prices flat despite a softening U.S. dollar amid easing concerns over full-blown trade war, says commodities brokerage SP Angel. As of 7:48 a.m. EDT, spot gold was 70 cents higher at $1,204.40 an ounce. “Gold bulls are seeing encouraging signs for a turnaround in the metal, after falling for five straight months, the longest slump since 2013, but showing resilience to hold near $1,200/oz since later August,” SP Angel says. “Recent gains in gold are influenced by signs of a slowing greenback. The dollar posted monthly increases in four of the past five months through August as concerns over global trade tensions boosted demand for the currency as a haven, eroding support for bullion. The Bloomberg Dollar Spot Index is down slightly this month after reaching a more than one-year high in August. The gauge is hovering close to its 100-day average for the first time since April.”

By Allen Sykora of Kitco News;


BBH: Market Sees U.S. Rates Gaining 100 Basis Points By End Of 2019

Thursday September 20, 2018 08:05

Financial markets are factoring in another full percentage-point hike in U.S. interest rates by the end of next year, says Brown Brothers Harriman. Treasury yields have been rising lately as a result. “It's not just U.S. Treasury yields that are rising to cycle highs,” BBH says. “The implied yield on the January 2020 Fed funds futures contract is trading around 2.86%, a new cycle high.  That suggests another 100 bp [basis points] of tightening between now and end-2019.  We can break that down further into two hikes still to go in 2018 and two more in 2019.  The market is moving closer and closer to pricing in three hikes next year, which is what the Fed sees now.” 

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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