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INTL FCStone Sees Gold Range-Bound During April

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Gold has some factors in its favor, yet may not be able to mount much of a rally in April considering these influences provided only a temporary lift in the recent past, says INTL FCStone. Prices rose early in the year, but subsequently eased. INTL FCStone points out that Chinese and Indian physical demand remain historically soft. Analysts say the factors that helped gold in early March are still present – a weaker U.S. dollar, falling global interest rates, deteriorating macroeconomic data, and dovish central banks including the Federal Reserve. “This could “give prices a bit of a lift going into April,” INTL FCStone says. “However, gold has capitalized on these variables before only to subsequently stumble and so we do not expect much in the way of an upward push and see a fairly restrained $1,275-$1,325 trading range prevailing this month.”

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

 

MKS: Range-Bound Gold Poised To Test Support

Tuesday April 2, 2019 08:17

Gold is range-bound at the moment but prices are acting as if they want to make a test to the downside; nevertheless, a couple of long-term moving averages could offer support, says MKS. Shortly after 8 a.m. EDT, spot metal was up 80 cents to $1,288.10 an ounce. Gold initially was weighed down in the Asia-Pacific session by a stronger dollar and regional equities, but drew support into the Chinese open, with Shanghai opening at a premium $15 above spot metal in London, MKS notes. “The yellow metal remains firmly entrenched within the $1,280-$1,300 range; however, it is beginning to look increasingly likely that the downside support will be tested over the near term as global equities see interest following recent positive data releases out of the U.S. and China,” MKS says. “Underlying growth concerns do however remain, as does the ongoing Brexit saga to provide interest in the metal. The 100 DMA [100-day moving average] cuts in at $1,281.70 and will be the key support level, with a break through here potentially extending as far as the 200 DMA at $1,248.33. Resistance remains formidable through $1,295-$1,300.”

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

 

CME Group: March Metals Volume Down From Year Ago

Tuesday April 2, 2019 08:17

CME Group reports that metals volume averaged 592,000 contracts per day in March, down 13% year-on-year. Still, the exchange operator reports a number of highlights, including record copper options open interest of 68,000 contracts on March 25. Average daily volume in precious-metals options rose 29% to 68,000 contracts, while gold options average volume increased 33% to 62,000 contracts. Platinum futures and options volume grew 12% to 30,000 contracts daily. Total metals volume averaged 561,000 lots in the first quarter, down 21% from 713,000 for the same period a year ago.

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

 

Commerzbank: Palladium Recovering But Look For More Weakness

Tuesday April 2, 2019 08:17

Commerzbank looks for another downdraft in palladium even though the metal is currently showing signs of stabilizing. Spot palladium fell as far as $1,335.10 an ounce Thursday after trading as high as $1,613.90 on March 21. As of 8 a.m. EDT Tuesday, the metal was at $1,407.45. “After previously chalking up considerable losses, palladium is continuing on its countermovement and has climbed to over $1,400 per troy ounce again,” Commerzbank says. “It appears to be bottoming out after the technically important 100-day moving average held firm last week. That said, the price is still $200 away from its record high. We believe that the correction will continue – this is also suggested by the fact that palladium ETFs [exchange-traded funds] recently registered sizeable outflows.”

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