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Standard Chartered: Gold 'Risks Remain Skewed To The Upside'

Kitco News

The fundamental backdrop for gold remains favorable, says Standard Chartered in a research note issued just ahead of the weekend. The metal has eased since its multi-month highs in the middle of last week. “While technicals suggest the next move for gold is lower, the macro backdrop remains broadly supportive,” Standard Chartered says, noting that speculative investors have been adding bullish exposure to the metal and not just buying to exit bearish positions. “Retail investor demand in the U.S. – notably absent in the past two years – has also picked up,” the bank says. “Easing of U.S.-China trade tensions and heightened uncertainty surrounding Brexit are more likely to stoke localized demand. However, continued central-bank buying offers a cushion for prices amid softer physical demand. Barring near-term profit taking, risks remain skewed to the upside.”

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

 

Commerzbank: U.S.-China Trade Deal Would Support Gold

Monday February 25, 2019 12:45

Any resolution of a trade war between the U.S. and China would benefit gold, and increased optimism for trade peace has already helped palladium, says Commerzbank. Analysts point out that when the trade conflict began last year, the effect was a stronger U.S. dollar and weaker Chinese currency, both of which hurt gold. “Though U.S. President Trump talked at the weekend of great progress being made in the talks with China, an agreement is far from certain,” Commerzbank says. Around 11:30 a.m. EST Monday, spot gold was 80 cents softer for the day at $1,327.10 an ounce. Meanwhile, high-flying palladium was gaining even more altitude, rising $29 to $1,503. “Hopes of the trade dispute being resolved is also giving palladium an additional boost; its price has gained by as much as 2% to a record level of $1,530 per troy ounce this morning,” Commerzbank says in an early-day research note. However, Commerzbank also says soaring palladium prices are “showing more and more signs of being a bubble.”

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

 

CFTC: Money Managers Increase Gold Positioning In Week To Feb. 5

Monday February 25, 2019 12:45

Money managers hiked their net-long (bullish) position in gold to 44,875 futures contracts in the week through Feb. 5, compared to a net-long of 32,397 as of Jan. 29, 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 47,729 lots from 39,919 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.

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