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Gold consolidates while PGMs continue on their 'runaway train' — TD Securities

Kitco News

Gold prices look like they are consolidating while the PGMs are continuing their rally, according to TD Securities. “While gold looks to consolidate in the near-term, PGMs continue their near exponential rise to start 2020,” write strategists at TD Securities. Platinum and palladium have a lot of similar drivers and both have the potential to rise further. “Platinum continues to surge, breaking above $1,000/oz for the first time since early 2018 as it benefits from the correlation to gold, increased investor appetite, improved European auto sales, ESG driven demand and supply concerns emanating from power outages and turmoil in South Africa,” the strategists say. “Meanwhile, the structurally tight palladium market continues its parabolic rise into uncharted territory for similar reasons, while also holding ample dry-powder as speculators have yet to take a material position. This suggests there is no end in sight for this runaway train.”

By Anna Golubova of Kitco News; agolubova@kitco.com

 

Gold prices attract investors on dips — MKS PAMP Group

Thursday January 16, 2020 09:53

Gold seems to be attracting investors on dips, writes MKS PAMP Group. “Gold found interest on any dips, with resting bids toward USD $1,555 restricting any further declines, however a lack of follow through interest saw the metal top out around USD $1,558,” MKS says. The yellow metal is trading in the $1,530 - $1,560 price range, preferring the upper band. “Data today includes German CPI, U.S. import prices, U.S. retail sales, U.S. Initial jobless claims, Bloomberg U.S. consumer confidence, the U.S. NAHB housing market index and the Philadelphia Fed business outlook,” according to MKS.

By Anna Golubova of Kitco News; agolubova@kitco.com

 

U.S.-China ‘Phase One’ trade deal has a limited upside — Capital Economics

Thursday January 16, 2020 09:52

The U.S.-China ‘Phase One’ trade deal signed on Wednesday has a limited upside for the world economy, which is still expected to see a gradual recovery in 2020, according to Capital Economics. “The deal signed yesterday between the U.S. and China was broadly as expected and has not led us to change our economic forecasts. The apparent ceasefire in the battle over tariffs removes a downside risk to growth. But tariffs remain high and we suspect that tensions will persist in other forms, adding to reasons to expect the global economic recovery to be a gradual one,” writes Capital Economics head of Global Economics Service Jennifer McKeown. Also, Capital Economics believes that the ‘Phase Two’ deal might never be agreed upon. “Any future negotiations will delve further into contentious issues, including IP, state subsidies and other structural concerns on which the US and China have little common ground. We suspect that a substantive Phase Two deal will never be reached,” adds McKeown.

By Anna Golubova of Kitco News; agolubova@kitco.com

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