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INTL FCStone: Gold, Silver To 'Continue To Flounder In May'

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INTL FCStone looks for the weakness in gold during April to continue this month. “We think gold and silver will continue to flounder in May, as we don’t see them shaking off the specter of a stronger dollar and rising U.S. interest rates, both likely to move higher on the back of the Fed’s most recent pivot to a more neutral stance, an imminent U.S.-China trade deal and the recent slew of better-than-expected U.S. macro numbers (with some notable exceptions),” the firm says in its monthly commodities outlook. “We see a $1,250-$1,310 trading range for gold…and a $14.50-$15.40 range on silver.” Gold came under pressure during the late part of April and early May because the U.S. dollar index pushed to its highest level since May 2017, as well as exchange-traded-fund liquidations of 46 tonnes, INTL FCStone says. Speculators exited bullish positions in the futures market, and equities were “strong competition for gold,” INTL FCStone adds. As of 8:42 a.m. EDT, spot gold was 20 cents stronger to $1,278.70 an ounce, while silver was 13 cents lower to $14.77.

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

 

INTL FCStone Envisions Further Weakness In Palladium

Monday May 6, 2019 08:56

INTL FCStone looks for the slide in palladium prices, which hit a record high earlier this year, to resume in May. “Palladium was range-bound for much of April, but we think we will see another test – and breach – of the lower end of the band by month end,” the firm says in its monthly commodities outlook. Analysts say they have been “cautious about palladium for some time now,” citing sagging U.S. and Chinese auto sales, as well as signs that tight supplies are abating some. They point out that Norilsk Nickel, the world’s largest palladium producer, reported a year-on-year rise of 32% in first-quarter production of the metal. “During May, we see further downside erosion and envision a $1,275-$1,430 trading range,” INTL FCStone says. Meanwhile, the firm says it looks for sister metal platinum to be range-bound between $830 and $920. As of 8:42 a.m. EDT, spot palladium was $21 lower to $1,327 an ounce, while platinum was down $10 to $860.

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

 

Commerzbank: ETF Gold Holdings Back Below 2,000 Tonnes

Monday May 6, 2019 08:56

Holdings of gold by the world’s exchange-traded funds have fallen below 2,000 tonnes for the first time since the end of December, Commerzbank says. Citing data compiled by Bloomberg, the bank notes that outflows were 7.4 tonnes Friday. Most ETFs trade like a stock but track the price of the commodity, with metal put into storage to back the shares. This gives investors exposure to gold prices without undertaking certain expenses such as storage and assaying of physical metal.

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