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Commerzbank: Gold Consolidates Recent Gains; ETFs Post Outflow

Kitco News

Gold may have entered a consolidation phase after the rise in prices since mid-December, particularly since recent strong U.S. economic data helps appetite for other so-called risk assets, says Commerzbank. As of 8:55 a.m. EST, spot gold was $6.10 lower to $1,311 an ounce. It was above $1,325 last week. Strong U.S. economic data Friday included monthly nonfarm payrolls and the Institute for Supply Management’s manufacturing survey. These point to rising stock markets, Commerzbank says. “What is more, U.S. bond yields have climbed noticeably since Friday. All of this is bad news for gold, as can be seen from the outflow from gold ETFs [exchange-traded funds] that was reported for Friday. And at 5.3 tonnes, it was pretty sizeable to boot. In the preceding four days of trading, gold ETFs had still seen inflows of 25 tonnes.”

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


CME Group: Metals-Trading Volume Falls In January

Monday February 4, 2019 09:03

Exchange operator CME Group reports that metals volume in January averaged 564,000 contracts per day, down 26% from the same month a year earlier. Options trading increased, however. CME Group reports that average daily volume in copper options rose 152% to a record 2,400 contracts. Gold options average volume increased 8% to 51,000 contracts, and the same for silver was up 2% to 7,700 contracts. Futures and options for palladium, which hit record-high prices last month, increased 6% to 5,200 contracts daily. On a three-month rolling basis, average volume for the period ending with January was 544,000 contracts, down from 547,000 for the three months through December, 597,000 for the period through November and 598,000 for the period through October.

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

 

TDS: Precious Metals Ease On Profit-Taking

Monday February 4, 2019 09:03

TD Securities is chalking up a decline in prices of precious metals at the start of the week to profit-taking as U.S. economic data has remained robust. This comes after Federal Open Market Committee communications last week were deemed dovish and helped gold. “The dovish shift and slowing global economy should keep prices well supported, but with the market currently pricing in cuts, any signs of continued U.S. data strength will ultimately keep a cap on further precious-metal upside,” TDS says. “With that said, we are not expecting any major CTA [Commodity Trading Adviser] flow as triggers remain far away.” As of 8:55 a.m. EST, spot gold was $6.10 lower to $1,311 an ounce, while silver was down 14 cents to $15.73.

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.