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BMO: gold sharply higher after U.S. airstrike

Kitco News

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A U.S. airstrike that killed a high-ranking Iranian general has underpinned gold, said BMO Capital Markets.  As of 8:11 a.m. EDT, spot gold was $14.40 higher to $1,543.10 an ounce. “Rising Middle East tensions have seen gold prices trade back above $1,540/oz early on Friday, close to September's recent highs, amid a push for safe-haven assets,” BMO said. Analysts report that over 100,000 ounces were added to exchange-traded-fund holdings on Thursday. “Silver is also up over 1% to ~$18.25/oz, while Brent crude's push towards $70/bbl is the highest seen since Q2 2019,” BMO said. “Generally, a rising oil price supports all commodities, partly through higher costs and partly as it drives AUM [asset-under-management] inflows to commodity index products.”

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

CME Group: metals-trading volume rises during 2019

Friday January 3, 2020 8:55

Average daily volume in metals trading rose by 5% during 2019 to an average of 668,000 contracts a day, exchange operator CME Group reports. During the month of December, average daily volume rose 20% from the same month in 2018, driven by 22% growth in precious-metals futures and options and 15% growth in base-metals futures and options. December metals volume was 529,000 contracts per day.

BMO: Palladium rises 377% over last decade

Friday January 3, 2020 8:55

Palladium has been a star performer among the commodities over the last decade, said BMO Capital Markets. Spot palladium ended 2019 at $1.935.90 an ounce, compared to $407 at the end of 2009. “Palladium stands apart from everything else. Helped by the rally over the past 15 months, palladium ended the decade at all-time highs in real and nominal terms. Compared to December 2009, it is 377% higher, with the next in the list gold at +38%,” BMO said. “Moreover, while other precious metals have seen ETF [exchange-traded-fund] inflows, palladium ETF holdings are 45% lower than a decade ago.”

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