Kitco Market Nuggets

Market Nuggets: Short Covering, Egyptian Unrest Boost Comex Gold—RBC’s Gero

28 January 2011, 02:16 p.m.
By Kitco News
http://www.kitco.com/

(Kitco News) -- Comex gold got a big boost Friday from the unrest in Egypt. Any traders who had been short, or sold, on gold’s recent pullback were given “tremendous incentive” to buy to cover those positions, says George Gero, vice president and precious-metals strategist with RBC Capital Markets Global Futures, from the Comex floor. “As stocks sold off, gold started to make a comeback,” he says. “Of course, all of that had to do with the unrest in Egypt.” With the uncertainty, traders wanted to avoid having short positions over the weekend. “Now that you have more unrest in the world, it brings to mind that Korea has not been settled yet. And, you still have looming ahead (debt) problems in Europe,” Gero says. Volume was heavy, particularly as the rollover continued out of the February contract ahead of first-notice day on Monday, Gero says. Shortly before 2 p.m. EST, Comex February gold rose $19.10, or 1.4%, to $1,337.50 an ounce. April was up $19.50, or 1.5%, to $1,339.30.

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

Market Nuggets: Comex E-micro Gold Futures Hit Volume Record Thursday

28 January 2011,1:08 p.m.
By Kitco News
http://www.kitco.com/

(Kitco News) -- Volume in the Comex E-micro gold futures hit a record of 2,007 contracts Thursday, reports CME Group. The prior record was 1,439 on Jan. 20. The E-micro gold contract, which was launched on Oct. 4, is one-tenth the size of the benchmark 100-ounce full-sized gold-futures contract.

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

Market Nuggets: MF Global: Correction In Base Metals May Have 'Run Its Course'

28 January 2011, 9:26 a.m.
By Kitco News
http://www.kitco.com/

(Kitco News) -- China’s primary aluminum deficit remains in a deficit, say analysts with Harbor Intelligence. The most recent data show daily output rose 0.7% in December, but was still 6.4% below a year ago. And while demand fell last month, it remains above the country’s output, Harbor says. Production “continues to be insufficient to meet aluminum demand,” Harbor says. “As a result, the country remains in apparent monthly deficit and visible inventories are falling. Indeed, although China was a net exporter of primary aluminum last month, it experienced a net importer position for all of 2010 and major producers are expecting this situation to persist in coming years and even intensify, in synch with our forecast.”

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

Market Nuggets: Harbor: Deficit in China’s Primary Aluminum Market Persists

28 January 2011, 8:42 a.m.
By Kitco News
http://www.kitco.com/

(Kitco News) -- China’s primary aluminum deficit remains in a deficit, say analysts with Harbor Intelligence. The most recent data show daily output rose 0.7% in December, but was still 6.4% below a year ago. And while demand fell last month, it remains above the country’s output, Harbor says. Production “continues to be insufficient to meet aluminum demand,” Harbor says. “As a result, the country remains in apparent monthly deficit and visible inventories are falling. Indeed, although China was a net exporter of primary aluminum last month, it experienced a net importer position for all of 2010 and major producers are expecting this situation to persist in coming years and even intensify, in synch with our forecast.”

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

Market Nuggets: MF Global: ‘Capitulation Sell-off’ Could Be Sign Bottom In Gold Is Near

28 January 2011, 8:30 a.m.
By Kitco News
http://www.kitco.com/

(Kitco News) -- One positive argument in gold’s favor is that a “capitulation sell-off” has now occurred, clearing the way for the metal to bounce, says MF Global. Holdings in the SPDR Gold Shares exchange-traded fund fell more than 1 million ounces Tuesday, and holdings in SPDR and the iShares Gold Trust are down 69.44 metric tons from the Dec. 17 peak. Also, on Monday, the number of open positions in Comex gold fell 14.1%, or 81,752 contracts, an unusually large number for a single day. “Such massive liquidations are typical of washouts, and usually signal that a bottom is near,” says MF Global analyst Tom Pawlicki. Another price decline Thursday dampened his enthusiasm about the upside some. Still, MF Global reports entering a position in April gold Thursday at $1,330, with an objective of $1,375 and a protective sell stop at $1,300.

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

Market Nuggets: BNP: Aluminum To Begin Anticipating Improving Conditions In Second Half

28 January 2011, 8:13 a.m.
By Kitco News
http://www.kitco.com/

(Kitco News) -- Newsletter writer Dennis Gartman has raised the level at which he would buy gold again on its pullback. Three weeks ago, the veteran investor not only held gold but it was one of the largest positions he had accumulated in years, before reducing in anticipation of a retreat that subsequently occurred. Gold has now fallen to its 150-day moving average, which provided support last spring and summer, he says. He has been calling for the metal to make its way down to $1,270-$1,290, and others have been lately as well. There is the chance gold will bounce before hitting that level, leaving those who wish to participate behind, or else it will hit that target zone but keep falling anyway. “From the action thus far today, we think it shall be the former rather than the latter and we  shall therefore raise our buying level from $1,270-$1,290 to $1,295-$1,305,” he says in The Gartman Letter. “If the margin clerks can mount one more assault upon their own clients, thus pressing gold down today, our propensity to act will be quite high. Indeed, we shall act if spot gold can put up a $1,299 ‘tick.’”

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

 

 

 

 

 

 

 

 

 

 

Market Nuggets: Barclays: Global ETP Holdings Hit Record High For Platinum, Palladium

27 January 2011, 8:02 a.m.
By Kitco News
http://www.kitco.com/

(Kitco News) -- Investor interest remains strong in platinum group metals, with global holdings in physically backed exchange traded products hitting record highs, say analysts with Barclays Capital. Platinum ETP holdings rose a modest 600 ounces to a record high of 129 million, while palladium holdings rose 5,000 ounces to a record 2.3 million, Barclays reports.  Meanwhile, holdings in gold ETPs, which have been sliding in January, were more stable Wednesday, Barclays says. There were redemptions of just 0.3 metric ton in the global ETPs the bank tracks.

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