FXTM: Gold Remains Bullish On Daily Price Charts
Gold’s technical picture remainsconstructive even though a bounce in the U.S. dollar has pressured the preciousmetal lately, says Lukman Otunuga, research analyst at FXTM. “Gold found itself underpressure during Tuesday’s trading, amid renewed market expectations of higherU.S. interest rates this year,” the analyst says. Otunuga later adds: “Althoughgold may witness further losses in the short term amid U.S. rate-hikeexpectations, the yellow [metal] still remains bullish on the daily chartsabove $1,300. A weekly close above$1,320 could signal further upside, with $1,333 acting as the next level ofinterest.”
By Allen Sykoraof Kitco News; asykora@kitco.com
RBC’s Gero:Profit-Taking Pressures Comex Gold Futures
Tuesday January 09, 2018 08:58
Gold hasrun into some profit-taking, says George Gero, managing director withRBC Wealth Management.Around 8:45 a.m. EST, ComexFebruary gold was $7.60 softerat $1,312.80 an ounce. Gerosays some profit-taking was expected as tensions on the Korean Peninsula abate,stocks remain strong and the U.S. dollar rises. He looks for some support inthe $1,310 area as “traders await new headlines here, concerned with taxes[and] U.S. politics.”
By Allen Sykoraof Kitco News; asykora@kitco.com
TDS SeesPotential For Further Gains In Gold Price
Tuesday January 09, 2018 08:40
Gold pricescould make a run to $1,357 or even $1,375 an ounce, says TD Securities. Themetal topped $1,300 on the final day of 2017 and has remained above this so farin 2018, with a multi-month high of $1,325.95 on Jan. 4. The precious metal hasbacked off modestly since and was trading at $1,314.55 as of 8:30 a.m. EST.Gold drew support last week from a softer U.S. dollar and a growing view thatthe U.S. Federal Reserve will not aggressively tighten monetary policy as longas inflation remains below target, TDS says. Further, there is a view that newU.S. tax legislation will not push the economy on an accelerated growthtrajectory. “Considering that investors seem ready to take hefty long goldpositions, even as equity markets are surging, it is quite possible that theyellow metal could attempt to hit $1,357/oz in the not-too-distant future,” TDSsays. “A move toward $1,375/oz is also possible should the market believe theU.S. central bank will be gentle in their-rate hike signaling. The lack ofinflation, weaker U.S. economic data in the coming months or a slumping USDcould all be catalysts for more gold upside.”
By Allen Sykoraof Kitco News; asykora@kitco.com
Commerzbank: Palladium Prices ContinueAscent
Tuesday January 09, 2018 08:40
Palladium,the strongest performing commodity of 2017, has continued its ascent in 2018,hitting a fresh record high, reports Commerzbank. Spot metal has been as highas $1,113.10 an ounce, while the Nymex March futures have traded up to$1,107.80. “The diesel scandal still appears to be the key factor here, as itis generating high demand for gasoline-powered cars,” Commerzbank says.Analysts cite figures from the China Passenger Car Association showing that carsales in China rose for the 27th consecutive year in 2017. The U.S. and Chinaare the world’s two largest car markets and both consist of mainlygasoline-powered vehicles, which use palladium rather than platinum forcatalysts. As of 8:23 a.m. EST, March palladium was $6.05 stronger at $1,101.95an ounce.
By Allen Sykoraof Kitco News; asykora@kitco.com
BBH: U.S. Dollar Continues To CorrectHigher
Tuesday January 09, 2018 08:40
The U.S. dollar has continued itscorrection higher, says Brown Brothers Harriman. As of 8:15 a.m. EST, the Marchdollar index was up 0.145 point for the day to 92.245. Previously, this indexfell from a mid-December high of 93.825 to a Jan. 2 low of 91.470. The onecurrency against which the greenback has lost ground Tuesday, however, is theJapanese yen. BBH lists two factors driving market moves, other thantraditional factors such as U.S. rates and the recent advance in equities. “First, there is unwinding of long-euro, short-yen positions thathad been established,” BBH says. Analysts also cite the Bank of Japan’sdecision Tuesday to reduce of buying of long-dated bonds (10 to 25 years) by 10billion yen to 190 billion yen. “It is the first reduction since 2016,” BBHsays. “The BOJ's yield curve-targeting strategy has required it to buy fewerJGBs [Japanese government bonds] than the JPY80 trillion declaratory objective.This seems more like a technical adjustment than a substantive policy change. Manywho look for the BOJ to adjust policy this year anticipate a higher target forthe 10-year JGB. Metals traders tend to monitor moves in the greenback sinceprecious and base metals alike often move inversely to the U.S. currency.
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.