Market Nuggets
RBC's Gero: 'Gold Now Has A Life Of Its Own'
Gold is powering higher even as the U.S. dollar index rises, says George Gero, managing director with RBC Wealth Management. “Gold now has a life of its own. Bulls have start of the upper hand,” he says. The technical-chart picture for gold remains good, helping the metal override worries about the dollar index being near 97, Gero says. As of 8:46 a.m. EST, the spot dollar index was 0.19 point higher to 96.923. Comex April gold was $12.80 higher to $1,334.90 an ounce and peaked at $1,335.70 an ounce, its strongest level since June.
By Allen Sykora of Kitco News; asykora@kitco.com
MKS: Gold Prices Retain Strength From Monday
Tuesday February 19, 2019 08:50
Gold prices are strong, holding onto the late-Monday move above $1,325 an ounce during European hours, says MKS (Switzerland) S.A. Gold rallied in global markets on Monday while the U.S. was closed for a holiday. “Although finishing off the session high of $1,327.85 overnight, the yellow metal remained robust in Asia, continuing to see a Chinese premium toward $10 to support pricing,” MKS says. Spot metal was trading up $4.80 to $1,331 an ounce as of 8:15 a.m. EST. “Geopolitical uncertainty in the U.K and Europe, coupled with ongoing U.S.-China trade disputes, should continue to see investor interest in the precious, while the potential for a pause to U.S. rate rises weighs upon the greenback,” MKS says.
By Allen Sykora of Kitco News; asykora@kitco.com
Commerzbank: Swiss Jan. Gold Exports To Asia Are Weak
Tuesday February 19, 2019 08:50
Data from the Swiss Federal Customs Administration show light gold demand from Asia last month, says Commerzbank. Analysts cite a report showing that Switzerland exported only 20.8 tonnes of gold to China and Hong Kong and only 6.7 tonnes to India in January. “This was just a fraction of last January’s quantities,” Commerzbank says. “Exports to India were the lowest in at least five years. It seems that higher local prices have put the brakes on demand. Gold demand in China and India should be higher again this year, however, as the pressure on local currencies should ease because we expect the US dollar to depreciate.”
By Allen Sykora of Kitco News; asykora@kitco.com
CFTC: Money Managers Cut Bullish Gold Positioning In Week To Jan.
Tuesday February 19, 2019 08:50
Money managers trimmed their net-long (bullish) position in gold futures to 16,210 futures contracts in the week to Jan. 22, compared to 24,935 futures contracts in the week to Jan. 15, the most recent CFTC data show. These accounts had been net long by 50,184 lots as of the end of 2018. Meanwhile, in silver, money managers trimmed their net long to 35,173 from 39,231 lots the prior week. This had stood at 30,046 contracts as of the end of 2018. The CFTC is behind on its weekly reporting due to the five-week U.S. government that began in late December. The CFTC has started issuing two reports per week – on Fridays and Tuesdays -- with the releases coming out in chronological order until the government gets caught up.
By Allen Sykora of Kitco News; asykora@kitco.com
SP Angel: Supply Issues, Strong Demand Boost Palladium
Tuesday February 19, 2019 08:50
Palladium hit a fresh record high on the back of robust demand and potential for a strike to impact supplies in South African, says commodities brokerage SP Angel. As of 8:15 a.m. EST, spot palladium was up $17 to $1,456 an ounce. It has been as high as $1,486.60 an ounce. “Palladium prices continue to rise as auto manufacturers and catalyst producers compete to buy metal from the few limited sources available,” SP Angel says. “The threat of the spread of strike action in South Africa could further exacerbate supply issues as Sibanye[-Stillwater] moves towards its conditional takeover of Lonmin.” Analysts add that Lonmin may need to further “rationalize production” ahead of its takeover, and the potential closure of loss-making shafts could send the market further into deficit.
