Commerzbank: Silver Prices Reclaim $17-Per-Ounce Level
Silver has moved back above $17 an ounce for the first time inroughly two months, points out Commerzbank. “Silver was pulled up by the basemetals yesterday and is making further gains this morning,” Commerzbank says.“For the first time in almost eight weeks, silver is priced at over $17 pertroy ounce again. That said, its excursion above this mark lasted only threedays in April. It remains to be seen whether the upswing that it has beenenjoying since the beginning of the month will prove longer lasting this time.” As of 8:57 a.m. EDT, spot silver was 21cents higher to $17.21 an ounce.
By Allen Sykoraof Kitco News; asykora@kitco.com
RBC’s Gero:Gold Futures Getting Short-Covering Boost
Thursday June 14, 2018 00:03
Gold hasbeen boosted by buying from traders looking to offset or cover their short, orbearish, trades, saysGeorge Gero, managing director with RBC Wealth Management. As of 8:52 a.m. EDT,Comex August gold was $10.40 higher to $1,311.70 an ounce. “Gold continues up with expectedshort covering...,” Gero says. He later adds: “Gold has had good reasons formoving up -- oversold, lowest open interest for the year, better crude, betterag commodities and geopolitics.”
By Allen Sykoraof Kitco News; asykora@kitco.com
FXTM: Gold Stronger Despite U.S. Rate Hike
Thursday June 14, 2018 00:03
Gold prices have staged a “solid rebound” despite the FederalReserve raising U.S. interest rates by 25 basis points on Wednesday, says Lukman Otunuga, research analyst atFXTM. The metal has held onto those gains despite strong U.S. economicdata Thursday morning. “There is a suspicion that the yellow metal’sappreciation could be off the back of [overnight] dollar weakness,” Otunugasays. “With investors simply engaging in a bout of profit-taking on thegreenback following the U.S. interest-rate increase, gold could appreciatefurther in the short term. However, gold’s gains are likely to remain limitedby heightened expectations over two more U.S. interest-rate increases thisyear.” The analyst adds that “the decisive breakout above the $1,300psychological level could invite an incline higher towards $1,324.” As of 8:57a.m. EDT, spot gold was $8.80 higher to $1,307.60 an ounce.
By Allen Sykoraof Kitco News; asykora@kitco.com
TDS: End Of U.S. Rate-Hiking Schedule ‘Within Striking Distance’
Thursday June 14, 2018 00:03
The Federal Open Market Committee might have hiked interest ratesagain Wednesday and signaled four total hikes in 2018, but TD Securities alsoreads the Fed commentary to mean the end of the tightening cycle may be insight. Specifically, foreign-exchange analyst say in a research note: “Moreimportantly, the end of the cycle is within striking distance, suggestinganother hike or two does little for the USD [U.S. dollar]. Assuming a terminalrate of 3%, an overshoot implies a real rate of 0.5-0.75% depending on the extentof the deviation. A Fed that is nearing the end of its cycle plus a lower realrate is not an appealing combination for the USD, especially as the U.S. twindeficit (current account plus budget) looks set to top 8% of GDP by 2020. Wealso note the U.S. curve is flattening like a pancake, which reinforces ourframework that the USD needs a steeper (not flatter) curve to rekindle the goodold days.”
By Allen SykoraFor Kitco News
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asykora@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.