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BMO: Sentiment For Metals Markets 'Surprisingly Positive'

Kitco News

Analysts at BMO Capital Markets say sentiment toward metals in general appears “surprisingly positive.” BMO this week held a major annual conference that always draws investors and chief executives of many of the major mining companies. “At the conference, we found sentiment around the metals market outlook to be surprisingly positive despite recent weakness in industrial macroeconomic data,” BMO says. “It was interesting, however, that the Chinese market participants we spoke to at the event suggested that sentiment in their home market regarding the economic outlook is weaker than that of international investors at the present time. Many of the commodities questions put to us during conference discussions were on copper, gold, nickel and zinc, with a strong positive skew to all.” Analysts say aluminum appears to be “off the radar for most investors at present.”

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

 

MKS: Key Chart Support For Gold Around $1,315-$1,318

Thursday February 28, 2019 09:35

Technical-chart support for gold lies around the $1,315 to $1,318 area, says MKS (Switzerland) S.A. Prices fell into this range early Thursday when spot metal bottomed at $1,317.30 an ounce, although they have since ticked higher and were at $1,319.60 as of 9:32 a.m. EST. “Technically, there is important support sitting around $1,315-18 for gold now, where an uptrend dating back to November 2018 and the 76.4% retracement of the April 18-Aug. 18 decline intersect,” MKS says. “A breach of this and a push through $1,300 support could prompt further liquidation from nervous longs. To the topside, key resistance remains around $1,345-55, where a number of peaks dating back to mid 2016 have hampered further progression.”

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

 

SP Angel: Palladium Recycling On The Rise

Thursday February 28, 2019 09:35

The amount of palladium recycled is rising and becoming a more important piece of the market, says commodities brokerage SP Angel. “As primary palladium quickly disappears from global markets, the significance of junkyard metal is becoming more apparent as producers are forecasting a 1moz [1 million-ounce] deficit for 2019 and global known inventories could run out by the close of the year,” SP Angel says. “Recyclers can recover around 90% of the metal from catalytic converters in junked cars, with extraction costs a fraction of primary mining. As prices surged, so did the amount of reclaimed palladium. In the first 10 months of 2018, 3.2moz were returned to the market, up 11% from the year earlier. That’s almost half the amount produced in mines.” Analysts report that recyclers can recover about three grams of palladium from the catalytic converters in junked cars. “The market is expected to become more reliant on recycled resources as there is limited fresh investment to increase output in Russia and South Africa,” SP Angel says.

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.