Commerzbank: Silver Break Above $17 Would Attract More Buyers
Silver could draw upside momentum if it can break through $17an ounce, says Commerzbank. The metal poked above its sideways corridor andthreatened $17 on Monday, analysts point out. “The technical picture here hasimproved noticeably in recent days,” Commerzbank says. “If the price were toexceed the $17 mark, this could lure in further buyers and continue the pricerise. Silver has certainly made good some ground vis-? -vis gold in recent weeks- the gold/silver ratio has dropped below 77, its lowest level since earlyJanuary.” The ratio measureshow many ounces of silver it takes to buy an ounce of gold, with a decliningnumber meaning that silver is outperforming gold, and vice-versa.
By Allen Sykoraof Kitco News; asykora@kitco.com
Dealers’ Group: Only Short-Term GoldEffect Expected From Trump-Kim Meeting
Tuesday June 12, 2018 08:03
Any gold-price movement after the meeting between PresidentDonald Trump and North Korean leader Kim Jong Un will be only temporary, saysBarry Stuppler, president of the Accredited Precious Metals Dealers, a divisionof the Professional Numismatists Guild. The next major event for markets is atwo-day meeting of the Federal Open Market Committee that starts Tuesday.“These events are highly likely to have only a short-term effect on thedirection of the gold price,” Stuppler says. “Geopolitical concerns about Iranand Italy have taken a back seat to concerns of how a global trade war willescalate....I look for gold to break out of the recent trading range of $1,282 to$1,307 per ounce very soon, and I believe it will be on the upside."
By Allen Sykoraof Kitco News; asykora@kitco.com
SP Angel: Safe-Haven Interest Wanes In GoldAfter U.S.-North Korea Summit
Tuesday June 12, 2018 08:03
Gold eased but only slightly after the leadersof the U.S. and North Korea pledged to work toward denuclearization of theKorean Peninsula, but the pullback was modest as much uncertainty remains, sayscommodities brokerage SP Angel in a research note. As of 7:52 a.m. EDT, spotgold was down $3.10 to $1,297.90 an ounce. “Safe-haven interest continues towane after [U.S.] President Donald Trump and [North Korean leader] Kim Jong Unsigned a document pledging to work toward peace on the Korean Peninsula,” SP Angelsays. The co-signed document says the North Korean leader “reaffirmed his firm and unwaveringcommitment to complete denuclearization of the Korean Peninsula” while Trump agreedto “provide security guarantees” to the North. “While progress towards peacegives bearish signals for gold, Trump’s move to meet Kim Jung Un attractedfierce criticism for normalizing a regime routinely called out for itshuman-rights abuses, that over years has built an image of fearsome renegaderegime, throwing around threats of nuclear war,” SP Angel says. “The documentneglects to answer some key questions focusing on definitions and the processof denuclearization, details of the security reassurances and the removal ofU.S. troops from S. Korea.”
By Allen SykoraFor Kitco News
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