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Standard Chartered: Gold Sought As Safe Haven Ahead Of U.S. Midterms

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Standard Chartered says gold has reasserted its safe-haven status ahead of U.S. midterm elections next week and in response to October weakness in the stock market. Any further weakness in stocks would bode well for gold prices, the firm says. “Although the largest gold-buying festival is a major event in the gold calendar, demand leading up to Diwali [festival in India on Nov. 7] has been weaker than normal,” Standard says. The bank looks for demand to firm, especially if prices in India trade near the key level of 30,000 rupees per 10 grams. “But external factors remain key and gold investors are likely to focus on macro events, ranging from non-farm payrolls [released Friday morning], the FOMC meeting [next week] and the U.S. midterm elections,” Standard says. “If President Trump loses support and the USD [U.S. dollar] weakens, retail investment demand is likely to pick up, providing a more solid floor for prices, and potentially a tailwind.”

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

 

CME Group: October Metals Volume Inches Higher From Year Ago

Friday November 02, 2018 09:11

Exchange operator CME Group reports that metals volume averaged 571,000 contracts per day in October, which was up 1% from 565,000 in the same month a year ago. Among the highlights was record copper options open interest of 37,000 contracts on Oct. 24. For the month, futures and options average daily volume in copper rose 5% year-on-year to 116,000 contracts. The same for gold grew 43% to 54,000 contracts. The rolling three-month average for the period through October was 598,000. This was down from 623,000 for the three-month period ending with September, 644,000 for the period ending with August and 661,000 for the period ending with July.

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

 

INTL FCStone: Platinum, Palladium Rally With Base Metals

Friday November 02, 2018 09:11

Platinum group metals are stronger despite a softer tone in gold so far Friday. As of 9:06 a.m. EDT, spot gold was down $2.20 to $1,230.70 an ounce. “However, we are seeing gains in platinum and palladium, with both moving higher in sympathy with a firmer base-metals complex,” says Edward Meir, commodities consultant with INTL FCStone. Platinum was up by $3 to $861, while palladium was up $13 to $1,095. Meir notes that “we are seeing more euphoria in the markets, again building on yesterday’s trade theme, with Bloomberg reporting that President Trump has asked key officials to begin drafting potential terms for a deal with China ahead of his meeting with the Chinese. Base metals are teeing off this story and pushing higher more than most other markets.”

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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