Commerzbank: Gold, Silver ETF Investors Buy On Price Retreats
Exchange-traded-fundinvestors appear to be using the recent pullback in gold and silver prices as abuying opportunity, says Commerzbank. The ETFs trade like a stock but track theprice of the commodity, with metal moving in and out of storage as necessary toback the shares. The bank says ETF investors, who tend tohave a longer-term horizon than speculators in the futures market, “have seizedthe low prices as a buying opportunity. Following a figure of 5.6 tonnes onThursday, gold ETFs saw further inflows of 3.2 tonnes on Friday.” The pictureis similar for silver ETFs, which registered inflows of roughly 84 tonnes inthe past two days of trading, Commerzbank says.
By Allen Sykoraof Kitco News; asykora@kitco.com
FXTM: Fed Expectations Leaving GoldDepressed
Monday March 19, 2018 09:47
Expectations for a hike in U.S. interest ratesare holding back gold at the start of a new trading week, says Lukman Otunuga, researchanalyst at FXTM. Meanwhile, the dollar remains buoyed by Fed expectations.“Taking a look at the technical picture, gold is under increasing pressure onthe daily charts,” the analyst says. Otunuga points out that prices are tradingbelow the 50-day moving average, while Moving Average Convergence/Divergence“has crossed to the downside. Sustained weakness under $1,314 could encourage adecline towards the psychological $1,300 level.”
By Allen Sykoraof Kitco News; asykora@kitco.com
BBH: FedExpected To Hike Rates As Powell Chairs First Meeting
Monday March 19, 2018 09:47
There is nearly “universalagreement” that the U.S. Federal Open Market Committee will hike interest ratesthis week at the first meeting chaired by Jerome Powell, says Brown BrothersHarriman. “The failure to raise interest rates would be significantlymore disruptive than a hike at this juncture,” BBH says. “Indeed, the focus isnot so much on the rate hike, but the forward guidance provided by the FOMCstatement and the Fed’s forecasts (dot-plot).” BBH analysts say they anticipatethat the post-meeting statement “will look past the recent string of economicdata that has prompted downward revisions to Q1 GDP estimates below 2%.” BBHadds: “The confidence Powell expressed in his recent testimony before Congressand the claim that what were headwinds have become tailwinds is unlikely to beundermined by some high frequency data....” BBH notes that there has beenspeculation that the Fed could signal four rate hikes in all this year, insteadof the three expected in the past. However, BBH analysts say they do not lookfor policymakers to signal a potential fourth rate hike just yet. “By hikingrates at his first meeting, Powell would brandish his ‘hawkish bias,’” BBHsays. “To also indicate a fourth hike would be overkill.”
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