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TD Securities: CTAs Not Acting In Gold But Buying Platinum

Kitco News

Commodity Trading Advisers received no fresh impetus to act in gold from Federal Reserve Chair Jerome Powell’s congressional testimony Tuesday but have been apparent buyers in platinum, says TD Securities. “Powell's testimony yesterday offered little new insights for precious-metal markets, while today's testimony is also unlikely to provide any new hints, and as such CTAs remain in consolidation mode for the yellow metal,” TDS says. As of 9:30 a.m. EST, spot gold was $3.80 lower to $1,324.60 an ounce. “The next upside trigger for gold stands in the $1,338/oz region, which is within range, but we do not expect a material break above this level until the U.S. fiscal stimulus impact begins to wane and U.S. data turns over,” TDS says. Meanwhile, platinum was $12 higher to $871. “CTA buying in platinum continues to see the metal outperform, up nearly 1% on the day,” TDS says. “Investors are starting to take a shine to the metal, as highlighted by ETF [exchange-traded-fund] holdings, which have grown to levels not seen since 2015, as the recent shift in market sentiment with regard to the demand outlook, the turmoil in South Africa and the bullish precious-metals environment all serve to boost prices.”

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

 

Metals Focus: Platinum Under Performance Likely To Continue

Wednesday February 27, 2019 09:35

Platinum has struggled to keep up with rising prices in other precious metals so far this year and platinum’s price under performance may well continue, says Metals Focus. Platinum has hit three-month highs on fear of a mine strike in South Africa disrupting supplies, but otherwise the price outlook remains “challenging,” the consultancy says. Analysts cite a lack of interest by futures traders on Nymex. A widening supply/demand surplus in the platinum market since 2016 “is expected to persist for the foreseeable future,” Metals Focus says. “On the supply side, despite the weak metal price, scrap supply is projected to post a small rise in 2019 to its highest level this decade.” Further, Metals Focus projects “only limited decline” in mine output in the coming years, not counting any strike. Meanwhile, the demand outlook remains “lackluster” as European sales of diesel vehicles continue to weaken (the metal is used in catalysts). Support from the jewelry sector will also remain soft, Metals Focus says. Still, Metals Focus said the metal will benefit from an expected rise in gold prices. “As such, for yet another year, we see gold remaining the key factor driving the platinum price, rather than the metal’s own fundamentals,” Metals Focus says. “Importantly, the platinum price will remain in a deep discount to both gold and palladium throughout the year.”

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

 

CFTC: Money Managers Increase Gold Positioning In Week To Feb. 12

Wednesday February 27, 2019 09:35

Money managers modestly trimmed their net-long (bullish) position in gold to 42,619 futures contracts in the week to Feb. 12 from 44,875 as of Feb. 5, 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 41,901 futures contracts from 47,729 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 been 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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