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RBC's Gero: Gold Decline May Be Buying Opportunity

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George Gero, managing director with RBC Wealth Management, says the Thursday sell-off in gold may have become a buying opportunity. He says Thursday’s decline was due to cascading sell stops margin-call selling, all perhaps set up by an options expiration, along with a strong U.S. dollar with international investors chasing yield in the U.S. Still, Gero says, “longer term, these setbacks are the buying opportunities many look for. Today we see short covering and Friday evening out. As of 9:47 a.m. EDT, Comex June gold was $8.50 higher to $1,303.80 an ounce after bottoming at $1,291.30 early in Friday’s session.

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

 

BMO: Platinum ETF Holdings Hit Fresh Record High

Friday March 29, 2019 10:06

Platinum holdings in exchange-traded funds rose for the ninth consecutive day on Thursday to hit 2.96 million ounces, the highest level on record. “Inflows have been strong year to date, as investors have seemingly taken a view that palladium may be overbought and saw potential for platinum substitution in auto catalysts over the mid-term,” BMO says. “Platinum has been out of favor for the past few years, with prices dropping from over $1,500/oz in 2014 to below $800/oz in 2018. The price has now steadied and looks to have hit an inflection point in late 2018, rising over 6% this year.”

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

 

Commerzbank: Platinum Narrows Premium Vs. Palladium

Friday March 29, 2019 10:06

Platinum narrowed its premium discount to sister metal palladium by a third this week, Commerzbank points out. Both metals are used in automotive catalysts, but palladium demand has been stronger due to its use in the stronger market for gasoline-powered vehicles. But after nearly doubling in price since mid-August, palladium underwent a massive sell-off on Wednesday and Thursday, with high volume both days on the New York Mercantile Exchange. “Because platinum has fared relatively well as compared with palladium in recent days, the price discount on platinum vis-à-vis palladium has decreased to a good $500 per troy ounce,” Commerzbank says in an early-day research note. “It was still nearly $750 at the start of last week.” Just before 10 a.m. EDT, spot palladium was trading at $1,365 an ounce, while platinum was at $850. 

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