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RBC’s Gero: Gold Could Draw More Buying On Break Above $1,300

Kitco News

The most-active gold futures contract could accelerate to the upside if the market can break above the psychologically important $1,300-an-ounce level, says George Gero, managing director with RBC Wealth Management. As of 9:38 a.m. EST, February gold was $5.20 higher to $1,286.50 an ounce and peaked at $1,291, its strongest level since June. ”Gold continues to move toward [the] $1,300 area, which may attract even more haven seekers as new worries like earnings and consumer sentiment emerge beyond the Brexit, global slowing economies and coming Fed hikes,” Gero says. He later adds, “Gold may move up slower from these levels -- awaiting more headlines from Washington [and] China, and more investors fleeing risk may add to gold.”

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

 

U.S. Jobs Report To Be Released Friday Despite Shutdown

Wednesday January 2, 2019 10:00

The monthly U.S. jobs report on Friday will be released despite the partial shutdown of the U.S. government, says a Labor Department spokeswoman. So will the Thursday report on initial jobless claims. The median forecast of economists is for nonfarm payrolls to have risen by around 180,000 to 185,000 in December, while the jobless rate is seen holding at 3.7% or edging down to 3.6%. The jobs report is normally considered the most important U.S. data each month since the health of the economy hinges on people having jobs.

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

 

CFTC Positioning Data Halted During U.S. Gov't Shutdown

Wednesday January 2, 2019 8:58

TD Securities looks for further gains in gold prices, especially if U.S. stocks continue their late-2018 weakness. “Signs of a flinching Fed supported gold and silver heading into the New Year celebrations, prompting CTAs [commodity trading advisers] to turn bullish on gold for the first time in six months,” says TD Securities. “That being said, the next upside trigger for gold remains out of sight, suggesting that appetite from discretionary traders will have to grow for prices to remain supported. And, as precious metals offer a much-needed hedge against collapsing equity prices, we think this rally in gold has not run out of steam in the near term, until additional evidence surfaces that stocks have bottomed.” Early Wednesday, Comex February gold peaked at $1,291 an ounce, its strongest level since June. As of 8:34 a.m. EST, the most-active gold contract was $5.90 higher to $1,287.20 an ounce.

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

 

MKS Looks For 'Extreme' Volatility In Palladium

Wednesday January 2, 2019 8:58

Not only has exchange-traded fund buying of gold picked up, but Swiss customs data shows Asian buying has improved as well, says Commerzbank. “As the Swiss Federal Customs Administration reported this morning, Switzerland exported considerably more gold again in November, especially to Asia,” the bank says. “Gold exports to India nearly tripled month-on-month, while exports to China and Hong Kong soared by just shy of 60%.”

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

 

CFTC Positioning Data Halted During U.S. Gov't Shutdown

Wednesday January 2, 2019 8:58

The U.S. Commodity Futures Trading Commission will not be releasing its weekly Commitments of Traders reports during the partial shutdown of the U.S. government, the agency reports on its website. The data show the bullish and bearish positioning of various categories of market participants. Traders monitor the data to gauge the general mood of speculators, although excessively high or low numbers are viewed by many as signs of overbought or oversold markets that may be ripe for price corrections. The most recent data covered the week-long period through Dec. 18 and showed that money managers had reversed to net-long, or bullish, positions in both gold and silver futures for the first time in months. “When the federal government operations return to normal, CFTC will resume publication of the Commitments of Traders report,” the agency says. Kitco News covers the data on a weekly basis and will resume when the reports are published again.

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.