Several factors could limit gold’s upside potential for now,says Commerzbank. On the news front, last week ended with astronger-than-forecast U.S. jobs report for May, with unemployment continuingto fall but wages rising more than expected, pointing to inflation risks, thebank says. “The U.S. Fed is likely to see this as confirmation that its cycleof rate hikes is appropriate,” Commerzbank says. “We expect the next rate hikeat the Fed’s upcoming meeting next week, which should keep the gold price incheck until then.” Further, analysts continue, some of the European politicaluncertainty has eased now that a government has been formed in Italy and theleadership transition appears to have taken place smoothly in Spain. Also, U.S.President Donald Trump says an on-again, off-again summit with the leader ofNorth Korea now will take place after all. “This has also slowed demand forgold as a safe haven,” Commerzbank says.
By Allen Sykoraof Kitco News; asykora@kitco.com
Monday June 4, 2018 08:18
Exchange operator CME Group reports that metals volume averaged674,000 contracts per day in May, up 25% from 540,000 in May2017. Average daily volume in gold futures and options grew 34% to 447,000contracts, while the same for copper was up by 38% to 117,000 contracts. Metalsvolume averaged 680,000 contracts daily for the three months ending with May.This compares with 685,000 for the three months ending with April, 713,000 forthe three-month period ending with March and 662,000 for the period ending withFebruary.
By Allen Sykoraof Kitco News; asykora@kitco.com
Monday June 4, 2018 08:18
Platinum “could continue to struggle” inJune, while palladium may be a “relative winner” among the precious metals,says INTL FCStone in a monthly commodities outlook. Most analysts expect theplatinum market to be in surplus for 2018, the firm points out. In particular,INTL FCStone cites data from Johnson Matthey forecasting a surplus of 316,000ounces in 2018, which would be a six-year high, with automotive demand falling3% after a 1% drop last year. “Over the course of June, we see prices tradingbetween $870-$935 [an ounce], not far off from last month’s trading range, butsee a steady grind lower heading into the second half of the year,” INTLFCStone says. Palladium, which is expected to post another supply deficitduring 2018, was forecast by INTL FCStone to be in a June range of $960 to$1,030.
By Allen SykoraFor Kitco News
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