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FXTM: Gold Needs Catalyst For Breakout Either Way

Kitco News

Gold is waiting for a fresh catalyst to make its next major move, says Lukman Otunuga, research analyst at FXTM. “The yellow metal continues to trade within a range with resistance around $1,296 and support at $1,280,” the analyst says. “A breakout above $1,296 will open the gates towards the psychological $1,300 level and beyond. On the other hand, weakness below $1,280 is seen triggering a decline back towards $1,272.” As of 10:17 a.m. EST, spot gold was $3.30 higher for the day to $1,292.40 an ounce.

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

 

Metals Focus: Palladium May See Profit-Taking; Long-Term Outlook Strong

Wednesday January 16, 2019 10:21

Metals Focus looks for palladium to remain strong in the long term although it may be due for a profit-taking pullback after hitting recent record highs. Analysts report that palladium demand for automotive catalysts has risen from 5.8 million ounces in 2010 to an estimated 8.5 million last year. “Coupled with constrained mine production growth, this has resulted in palladium demand outpacing global supply over much of this decade,” the consultancy says, noting that last year’s supply/demand deficit was an estimated 1.1 million ounces, meaning above-ground stocks have been falling. “Looking ahead, we believe palladium’s fundamentals remain strong,” Metals Focus says. “In the short-term, however, some profit-taking seems likely. This could be triggered by further indications of a global economic slowdown or bad news from the auto industry. A further loosening of the leasing market could also contribute to such a move.” Still, Metals Focus adds, any correction lower in prices is likely to be short-lived and treated as a buying opportunity. “Overall, therefore, following a brief price downturn, we forecast further upside for palladium later this year,” Metals Focus says. “Indeed, we believe that this trend will continue into 2020 and beyond, as persistent deficits push the palladium price through new record highs.”

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

 

TDS: Equity Gains May Cool Diversification Into Bullion

Wednesday January 16, 2019 10:21

Recent gains in the stock market could curb enthusiasm for gold, at least for now, says TDS Securities. Gold has “largely held its ground against a broad recovery in risk assets,” yet a recent close above 2,600 in the S&P 500 means a less pessimistic technical picture for equities, TDS explains. “This could well see appetite for bullion diversification ease in the near term,” TDS says. “We continue to expect that gold prices will have to wait for a catalyst before meaningfully breaking into $1,300/oz territory.As of 10:15 a.m. EST, spot gold was $3.20 higher for the day to $1,292.30 an ounce.

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.