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INTL FCStone: Gold Support From More Dovish Fed Abates

Kitco News

Gold futures dipped to their lowest level of the year early Tuesday, and INTL FCStone says the metal at the moment is not benefitting from the same factors that previously offered support, such as the Federal Open Market Committee seemingly becoming more cautious on hiking interest rates. As of 9:01 a.m. EST, February gold was down 50 cents to $1,282.10 an ounce and earlier bottomed at $1,276. ”It seems that the several factors boosting gold earlier in January now seem to be having no effect, namely, the far more dovish Fed and clearer signs of slowing global growth,” says Edward Meir, commodities consultant with INTL FCStone. “Instead, it seems that gold is being undermined by a slightly stronger dollar (now at a three-week high basis the general dollar index), along with a modest uptick in U.S. 10-year rates – up some 20 basis points in the last few weeks and currently at 2.8%.”

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

 

FXTM: Gold Bounces As Investors Seek Safe Havens

Tuesday January 22, 2019 09:28

Spot gold has bounced back from multi-week lows earlier Tuesday as concerns over slowing global growth sent investors rushing to safe-haven assets, says Lukman Otunuga, research analyst at FXTM. Around 9:20 a.m. EST, spot gold was up $3.40 to $1,283 an ounce. “Geopolitical risks in the form of Brexit drama, U.S.-China trade developments, and a government shutdown in the United States boosted the metal’s allure, with prices trading around $1,283 as of writing,” the analyst says. “Gold is likely to receive further support from growing speculation over the U.S. Federal Reserve taking a pause on rate hikes this year.” Turning to the daily technical chart, Otunuga says gold remains in a bullish channel. “There have been consistently higher highs and higher lows with the MACD [Moving Average Convergence Divergence] pointing to the upside,” the analyst continues. “An intraday breakout above $1,286 is likely to open a path towards $1,295 and $1,300, respectively.”

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

 

Commerzbank: ETF Holdings Of Platinum Rising

Tuesday January 22, 2019 09:28

Investors are moving into platinum-backed exchange-traded funds, but prices have not benefitted, says Commerzbank. “Holdings in the platinum ETFs tracked by Bloomberg have been topped up by nearly 100,000 ounces since the start of the year, though this has not boosted the platinum price,” Commerzbank says. “It has fallen this morning to $790 per troy ounce, i.e. below the level at which it began the year.” 

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