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RBC's Gero: Stops, Dollar, Equities All Pressuring Gold

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Stop-loss and margin-related selling, stronger equities and a firmer U.S. dollar are all pressuring gold, says George Gero, managing director with RBC Wealth Management. Nevertheless, Gero says he would not be surprised to see bargain hunting and a rally later in the week since “politics, Brexit and other global uncertainties have not gone away.” As of 9:48 a.m. EST, Comex April gold was $14.60 lower to $1,284.60 an ounce and bottomed at $1,284.50, its weakest level since late January. The Dow Jones Industrial Average opened higher, and the March dollar index was 0.20 point higher to 96.650.

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

 

CME Group: Feb. Metals Volume Declines From Year Ago

Monday March 4, 2019 10:10

CME Group February metals-trading volume was sharply lower than in the same month a year ago, the exchange operator reports. Volume averaged 525,000 contracts per day in February, down 24% year-on-year. Still, there were some notable gains, CME reports. The exchange operator lists record copper options open interest of 57,000 contracts on Feb. 22 and record daily volume of 12,500 contracts on Feb. 20. For the month, platinum futures and options average daily volume rose 11% to 20,500 contracts. Average daily copper options volume more than tripled to 3,700 contracts. On a rolling three-month average basis, overall metals volume for the period ending with February averaged 510,000 contracts daily, CME Group says. This compared with 544,000 for the three-month period ending with January, 547,000 for the period ending with December and 597,000 for the period ending with November.

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

 

TDS: ‘We See New Bids In The Cards’ For Gold

Monday March 4, 2019 10:10

TD Securities look for gold to regain its footing after recent weakness. After peaking near $1,346.45 last month, spot gold has fallen to a session low of $1,283.15, its weakest level since late January. “However, we anticipate that a poor economic outlook in Europe, continued disappointments in China and slowing U.S. growth into 2019 should all eventually conspire to reduce risk appetite,” TDS says. “At the same time, investors are also likely to convincingly call the end of the U.S. tightening cycle, which should serve as a catalyst to place gold on an upward trajectory once again. These are some of the reasons why we see new bids in the cards for the yellow metal, and we see room for CTAs [Commodity Trading Advisers] to add to their length above the $1310/oz range.”

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

 

CFTC: Money Managers Increase Gold Positioning In Week To Feb. 19

Monday March 4, 2019 10:10

Money managers sharply increased their net-long (bullish) position in gold to 82,377 futures contracts as of Feb. 19 from 42,619 on Feb. 12, 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 modestly to 38,800 lots from 41,901 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. Since the government reopened, 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.

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

 

INTL FCStone Sees $1,280-$1,340 Gold During March

Monday March 4, 2019 10:10

INTL FCStone sees gold trading in a range of $1,280 to $1,340 an ounce during March. Although the metal has given back prior gains over the last week, “we suspect a weaker dollar will still provide it with some support,” the firm says in a monthly commodities outlook issued late Friday. Earlier strength was the result of a realization that the global economy is slowing, resulting in a shift toward expectations for easier monetary policies from central banks, INTL FCStone says.  Further, the firm says, some “decent” physical buying has materialized in gold. Exchange-traded funds have been accumulating metal since October. While some liquidation occurred in February, INTL FCStone says a “likely return of short-term market volatility could prompt ETF investors to rebuild some positions.” Furthermore, central-bank demand has been robust, INTL FCStone adds. Silver is seen in a band of $15 to $15.90.

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