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INTL FCStone: Gold's Stars Aligned For Bright December

Kitco News

INTL FCStone says gold and silver should fare well in December in an environment with falling U.S. interest rates, a softening U.S. dollar and “wobbly” equities. Further, the chart pattern is now “constructive” after a breakout when prices topped $1,242 an ounce, INTL FCStone says. “If all these bullish variables do not get gold going in December, we don’t know what will,” analysts say. They list a potential December range of $1,230 to $1,285 an ounce. “Silver should ride higher on gold’s coattails and platinum should see a higher trading range as well,” analysts say. However, INTL FCStone says the recent run to record-high prices in palladium is “overdone,” considering car sales are slowing in the two largest markets in the world, the U.S. and China.

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

 

Commerzbank: Gold Hits Five-Month High On Multiple Factors

Monday December 10, 2018 08:02

Gold prices hit a fresh five-month high overnight on a combination of factors, says Commerzbank. Spot metal peaked at $1,250.05 an ounce before backing off slightly since, easing $2.10 for the day to $1,246.35 as of 7:46 a.m. EST. “Stock markets find themselves under pressure as the new week of trading gets underway,” Commerzbank says, citing gold-supportive factors. “Bond yields are continuing to fall. Fed rate-hike expectations are plummeting. Fed fund futures imply only a good 70% probability of a rate hike at the Fed’s meeting next week, with the probability of another by the end of 2019 likewise at only around 70%. In other words, only 1.5 rate hikes of 25 basis points each are priced in by the end of 2019. A week ago two rate hikes were priced in, and a month ago three.” In fact, Commerzbank adds, financial markets are even beginning to “cautiously price in a rate cut for 2020.”

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

 

BMO: Gold Headwinds ‘Starting To Turn’

Monday December 10, 2018 08:02

Analysts with BMO Capital Markets say they are constructive on gold going into 2019. “We see the headwinds gold has faced over 2018 starting to turn,” they say. “With increased volatility and geopolitical risk, macro asset allocation is becoming more gold positive again, while we believe much of the USD [U.S. dollar] upward move is now behind us with rate-hike expectations dropping. This should support gold pricing and gold equity valuations into the middle of 2019.”

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.