Make Kitco Your Homepage

Standard Chartered: 'We Remain Positive On The Outlook For Gold'

Kitco News

Standard Chartered analysts say they are upbeat on gold prices, reporting that a number of macroeconomic factors fueled gold’s recent rally. “Scaling back of Fed rate-hike expectations, a weaker USD [U.S. dollar] and lower U.S. Treasury yields paint a favorable backdrop for gold prices at the start of the year, and prices have rallied to close in on USD 1,300/oz,” Standard says. “Following the strongest month for ETP [exchange-traded-product] inflows since January 2017, inflows this month are on track to test two-year highs.”  Standard Chartered adds that China’s demand appears to be firming leading up to the Lunar New Year on Feb. 5, while central-bank buying remains stable. “We remain positive on the outlook for gold,” analysts conclude.

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

 

Standard Chartered: ETP Gold Inflows Strong In December, Early January

Thursday January 10, 2019 10:13

Standard Chartered reports that inflows into physically backed gold exchange-traded products were the highest in December since January 2017, reaching 67 tonnes. “December also recorded the strongest daily inflows since July 2016,” Standard says. “This trend has continued into January, with inflows already reaching 22.6t.”

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

 

INTL FCStone Expects Gold To Eventually Top $1,300/Oz

Thursday January 10, 2019 10:13

Look for gold to eventually move above $1,300 an ounce, says Edward Meir, commodities consultant with INTL FCStone. Comex February gold was down 50 cents to $1,291.50 an ounce as of 9:13 a.m. EST. The metal hit a six-month high of $1,300.40 last week.  Precious metals remain firm, but the upward momentum seems to have stalled somewhat as far as gold is concerned…,” Meir says. “In gold's case, the $1,300 level remains psychological resistance, but we suspect it will eventually be taken out given the backdrop the precious metal is operating against.”

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

 

Commerzbank: Palladium Premium Over Platinum Hits Record

Thursday January 10, 2019 09:42

Palladium’s price premium over sister metal platinum at one point widened to more than $500 an ounce, which left Commerzbank predicting eventual substitution toward platinum by the auto industry. Both metals are used for catalytic converters. “Palladium initially continued to soar to unimagined heights yesterday and achieved a new record high of $1,344 per troy ounce,” Commerzbank says. The metal then pulled back on profit-taking. “As a result of the steep increase in the palladium price, the price gap to platinum has widened to over $500 per troy ounce for the first time,” Commerzbank says. “We cannot imagine that demand will remain unscathed for much longer. Sooner or later, we are likely to see substitution effects in favor of platinum in the auto industry.” Around 9:30 a.m. EST, spot platinum was $3 softer for the day to $820 an ounce, while palladium gained $3 to $1,314.     

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

 

BBH: Fed Minutes Are ‘Rare Surprise,’ May Undermine Dollar

Thursday January 10, 2019 09:42

Minutes of the last meeting of the Federal Open Market Committee, released Wednesday, delivered a “rare surprise” and could pressure the U.S. dollar, says Brown Brothers Harriman. “December minutes showed that many felt the Fed could be patient on further hikes, and that the timing and extent of such hikes was less clear then,” BBH says. “Indeed, a few officials favored no hike at all in December, noting that downside risks had increased. Given how hawkish [Fed Chair Jerome] Powell came across at the presser [press conference] last month, the minutes instead surprisingly show a Fed that was a bit less confident then what we were seeing in public.  The complete 180[-degree turn] in Fed messaging should keep the dollar under pressure.”

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.