Make Kitco Your Homepage

Eyes on palladium as the metal continues its parabolic rise — TD Securities

Kitco News

The market is keeping a close eye on palladium as the metal continues its parabolic rise, writes TD Securities. “In the midst of MLK day trading, the market will be keeping a close eye on the palladium market, whose parabolic rise continues to see prices print new all-time highs,” strategists at TD Securities says. “While PGM prices have been rising in tandem, with palladium trading parabolically and platinum printing highs not seen since 2017, their positioning dynamics are diverging.” Palladium’s fundamentals point to even higher prices going forward. “We reiterate that palladium's particularly strong fundamentals suggest that it can continue to trade far beyond cost-dynamics, and given that speculative length remains a minor risk, we see a smaller risk for a sharp decline in prices than the counterfactual,” the strategists add.

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

Copper to have ‘the largest deficit seen over the past decade’ in 2020 — BMO

Monday January 20, 2020 09:42

Copper is looking to have the largest deficit in a decade this year, according to BMO Capital Markets. “We published a report looking at the supply-demand dynamics for copper over the coming years. As global industrial production recovers, helping ex-China demand, we see the current year as having the largest deficit seen over the past decade. We feel ex-China has a major role to play this year,” writes BMO Capital Markets managing director of commodities research Colin Hamilton. BMO looks at both supply and demand to forecast the metal’s price over the coming decade. “Our base case is for a modest recovery in 2020 demand (+2.2%), which in essence reflects simply an end to destocking. This will, however, divert some of the copper units away from Chinese buyers, and the resultant competition for units is what is needed to see further gains in the copper price. There are a number of projects in the pipeline, however, which will have to be absorbed over 2021-2023. Although, a supply gap re-emerges by the middle of the decade,” Hamilton says.

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

ECB meeting this week will be all about strategy — ING

Monday January 20, 2020 09:42

The European Central Bank (ECB) interest rate announcement on Thursday will be all about the strategy review, according to ING. “The official start of the strategy review should be the highlight of this week’s European Central Bank meeting. For any (subtle) changes in the ECB’s risk assessment or forward guidance, market participants will have to wait until March,” writes ING Germany chief economist Carsten Brzeski. “This week’s press conference should be a rather risk-free practice area for ECB President Christine Lagarde to further sharpen her own communication style and monetary policy skills. While we expect the ECB to announce the official start of the strategy review, the meeting should be rather uneventful regarding monetary policy.”

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

Gold's hard support is at $1,540-$1,550 amid risk-on sentiment — MKS PAMP Group

Monday January 20, 2020 09:42

Gold’s trading pattern remains “constructive” despite risk-on sentiment in the marketplace with hard support around $1,550 an ounce, writes MKS PAMP Group. “Gold price action continues to be constructive even amid risk developments such as positive U.S. data, positive trade headlines, etc. Near-term supportive price action through USD $1,540 - $1,550 should provide hard support, while participants will be looking for consolidation above the USD $1,560 pivot to extend upon recent strength,” MKS says.

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

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.