Make Kitco Your Homepage

TDS: CTAs Helping Send Gold Prices Higher

Kitco News

Commodity Trading Advisers are likely helping to fuel the rally in gold, says TD Securities. The precious metals are stronger, with spot palladium getting to $1,500 an ounce for the first time and spot gold hitting a 10–month high of $1,346.45. “While the complex has benefited from expectations of a very dovish Fed, with a contingent of the market still expecting cuts — which keeps the bar elevated for the Fed to avoid disappointing the market — we think that CTAs have played a notable role in helping gold and platinum prices rally,” TDS says. “We continue to expect trend followers to add a significant amount of length to their gold holdings.” However, analysts continue, gold prices must stay above $1,327 on the day for the current round of long accumulation to “stay the course.” Platinum is receiving a more modest upside lift, but TDS analysts say “we expect this rally to have some legs as the market normalizes its demand expectations.”

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

 

Commerzbank: Palladium Touches $1,500/Oz

Wednesday February 20, 2019 09:25

Palladium has continued a record run fueled in part by speculative buying, says Commerzbank. “This morning it happened: palladium exceeded – albeit briefly – the $1,500-per-troy-ounce mark,” says Commerzbank. “This had been on the cards given that the price had enjoyed a spurt in recent days. That said, there has been no news to explain the price rise of around $100 in the past week.” Analysts point out that palladium has now gained some $650, or almost 80%, from its August low. “The question is -- has palladium now peaked or will it even shift up another gear?” the bank says. “We see no justification for this high price, which is being attributed to supply shortages. As we see it, speculative financial investors have been jumping on the bandwagon for some time now, boosting the price rise.” As of 9:11 a.m. EST, spot palladium was $12 higher to $1,473 an ounce after pullback back from the early-day peak.

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

 

CFTC: Money Managers Double Bullish Gold Positioning In Week To Jan. 29

Wednesday February 20, 2019 09:25

Money managers roughly doubled their net-long (bullish) position in gold to 32,397 futures contracts as of Jan. 29, compared to 16,210 the week before, 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 upped their net long to 39,919 from 35,173 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.

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.