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Standard Chartered: Gold Prices Skewed To The Upside

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A Federal Reserve that was more dovish than expected this week should continue to underpin gold prices, says Standard Chartered. Fed communications showed that policymakers collectively do not envision any rate hikes in 2019, a contrast from December, when they expected two hikes this year. Positioning in gold was light headed into this week’s Fed meeting, Standard says. “The more dovish-than-expected Fed should prove to be a catalyst for investors to re-engage in the gold market, given that many participants had been deterred from entering last year amid a hiking cycle,” analysts say. “We believe the macro backdrop remains supportive of gold, with the Fed indicating no further hikes for 2019, coupled with our forecast for the USD [U.S. dollar] to weaken. Physical demand is likely to soften after the second-largest gold buying festival, Akshaya Tritiya, in April, but continued central bank buying offers a downside cushion for prices, and now the investment demand response will be key.” As of 9:38 a.m. EDT, spot gold was $2.80 stronger to $1,311.35 an ounce.

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

 

Commerzbank: Palladium Holds Up As Russia Nixes Scrap-Ban Story 

Friday March 22, 2019 09:41

High-flying palladium held up Thursday even though one of the stories that fueled the rally – a Russian export ban on precious-metals scraps – is no longer the case, says Commerzbank. Palladium crept above $1,600 an ounce for the first time ever this week, but as of 8:32 a.m. EDT, had backed off to $1,584.85 an ounce, down $16.25 for the day. “After a meeting with industry participants, the Russian Ministry of Industry and Trade announced yesterday that there will be no restrictions on exports of precious metals or precious metal scrap,” Commerzbank says. “The response of the palladium price to this news was only muted, however. Late last week and early this week, this issue was still being used to drive the palladium price ever further up. This reveals the one-sided view of market participants. Whereas supposedly price-supportive news [stories] are being used to buy palladium, market participants have been ignoring bearish news for months.”

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

 

SP Angel: Gold Headed For Third Straight Weekly Gain

Friday March 22, 2019 09:41

Gold is continuing its recent uptrend after Federal Reserve policymakers indicated this week that U.S. interest rates may not rise again in all of 2019, says commodities brokerage SP Angel. “Gold remains poised for a third weekly climb as investors retain a bullish outlook on the precious metal in a weekly Bloomberg survey and assess the Federal Reserve’s policy shift to a prolonged pause in monetary policy tightening,” SP Angel says. “This week, [Fed] Chairman Jerome Powell said interest rates could be on hold for ‘some time’ as global risks weigh on the economic outlook and inflation remains muted.” Spot gold was trading at $1,311 as of 9:27 a.m. EDT, a gain of $9 for the week to date.

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

 

MKS Looks For Gold To Keep Ticking Higher

Friday March 22, 2019 09:41

MKS (Switzerland) S.A. looks for gold to rise some more. The metal got a boost this week from a dovish U.S. Federal Open Market Committee. In early Asia-Pacific trade Friday, some profit-taking occurred leading into the Chinese open, however, interest toward $1,305 kept declines in check, MKS says. “Bullion remains well supported above $1,300 and should continue to push higher over the near term,” MKS says. “Supportive interest toward $1,300 and below this toward $1,295 will be the key to a test back through $1,320 and ultimately $1,346.” As of 9:27 a.m. EDT, spot metal was $2.45 higher to $1,311 an ounce.

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