Commerzbank: Stronger Dollar, Treasury Yields Pressure Gold
Gold is lowerand has been below $1,340 an ounce as the U.S. dollar appreciates, saysCommerzbank. “Yields on 10-year U.S. Treasuries are likewise rising slightly,which is presumably also weighing on the gold price,” the bank says. “Gold ineuro terms is faring somewhat better at a good ?,?1,080 per troy ounce.” Analystspoint out that silver is suffering “disproportionate” losses compared to gold.Around 7:50 a.m. EST, spot gold was down 0.53% to $1,339.10 per ounce, whilesilver was down 0.96% to $16.50. “We see no reason for the weakness of silvergiven the firm base-metals prices,” Commerzbank says. “Platinum and palladiumare falling in tandem with gold, platinum dipping for a time below $1,000 pertroy ounce again.”
By Allen Sykoraof Kitco News; asykora@kitco.com
BBH: MarketsFocused On How U.S. To Pay For Deficit
Tuesday February 20, 2018 08:14
Treasury yieldsare a market focus ahead of an auction of short-term U.S. debt, points outBrown Brothers Harriman. The budget deficit is taking center stage. “It is not so much thedeficit as the paying for it,” BBH says. “That is, the U.S. Treasury will raisea boatload of money today. It will issue $96 billion in three- and six-monthbills and $55 billion in a four-week cash management bill. It will also sell$28 billion of two-year notes. In the next two days it will raise another $80billion in other note sales.” Anticipation of the auction has pushed short-termrates higher, BBH adds. “The U.S. debt market appears to have been building ina concession ahead of the new supply,” BBH continues. “The yield of the entirecoupon curve is about three basis points higher.”
By Allen Sykoraof Kitco News; asykora@kitco.com
Commerzbank:Swiss Data Show Higher Gold Exports To China
Tuesday February 20, 2018 08:14
Swiss datashowed that gold exports to China and Hong Kong picked up ahead of Chinese NewYear festivities, accounting for roughly two-thirds of Switzerland’s exportslast month, Commerzbank points out. Analysts cite data from the Swiss FederalCustoms Administration showing that Switzerland “only” a little more than 107tonnes of gold in January. “That said, last year also saw only smallerquantities of gold exported in the first two months,” Commerzbank says.“Exports to China and Hong Kong picked up by a very considerable 70%year-on-year to total 66 tonnes, which we attribute to higher gold demand aheadof the Chinese New Year Festival. By contrast, January exports to India wereonly roughly half as high - at a good 14 tonnes - as they were last January. Lastweek already saw the Indian Ministry of Commerce report a noticeable decline ingold imports in January. Thomson Reuters GFMS had also talked about weak Indiangold demand.”
By Allen SykoraFor Kitco News
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