RBC's Gero: Comex Gold Eases As Dollar Strengthens
Gold, which was rising for a few months before hitting a six-month high on Friday, is experiencing an “inevitable” pullback today as the U.S. dollar improves with rebounds in the stock market, says George Gero, managing director with RBC Wealth Management. He also cites market disappointment that gold was not able to accelerate above $1,300 an ounce. Around 10 a.m. EST, Comex February gold was $7.70 lower to $1,282.20 an ounce. The March dollar index rose 0.347 point to 95.575. Traders are awaiting U.S. President Donald Trump’s Tuesday night speech about the border, with a political standoff over the issue leading to a government shutdown that may soon be the country’s longest ever, Gero adds.
By Allen Sykora of Kitco News; firstname.lastname@example.org
Commerzbank: Palladium Still Elevated In ‘Very Tight’ Market
Tuesday January 8, 2019 09:13
Palladium prices remain not far from recent record highs after last week topping $1,300 an ounce for the first time ever, says Commerzbank. “The palladium market clearly remains very tight, as reflected in the forward curve, which is in a pronounced state of backwardation,” Commerzbank says. “The spot price for example is a good $60 above the price of the most-active futures contract (with a March maturity date). In anticipation of stricter emissions standards, which will see more palladium used in auto catalysts, some traders and consumers may be attempting to secure their supply of palladium.” Prices may also have been driven higher by speculative financial investors, says Commerzbank, although this cannot be confirmed by data from the Commodity Futures Trading Commission since the agency’s weekly reports on positioning of market participants have not been released since mid-December due to the U.S. government shutdown. As of 8:55 a.m. EST, spot palladium was $4.50 softer to $1,293.60 an ounce.