INTL FCStone: 'Stronger Dollar Should Weigh On Gold' In March
INTLFCStone looks for a stronger U.S. dollar and higher bond yields to weigh ongold during March. Barring a trade war, analysts doubt traders will want toestablish bearish positions in the greenback ahead of a Federal Open MarketCommittee meeting around the middle of the month. Further, U.S. bond yieldsremain high, while other central banks appear reluctant to tighten monetarypolicy, INTL FCStone says in a monthly commodities outlook. “A stronger dollarshould weigh on gold, as should higher U.S. bond yields heading into the MarchFederal Reserve meeting,” says INTL FCStone. Also, gold does not appear to bebenefitting from recent downdrafts in equities, leaving it “more vulnerable tothe upward movements we see in both the dollar and interest rates,” INTLFCStone says. The firm says it sees gold trading between $1,285 and $1,360during the month “as we suspect that the higher rate/higher dollar scenariowill return, especially if the tariff talk is toned down.” Silver “shouldfollow gold’s trajectory,” INTL FCStone says. Analysts see this metal rangingbetween $15.85 and $16.90 an ounce.
By Allen Sykoraof Kitco News; asykora@kitco.com
INTLFCStone: Palladium Could Face Setback After ‘Blistering’ 2017
Monday March 05, 2018 08:06
Palladiummay be due for a pullback after a “blistering” run higher in 2017, says INTLFCStone. Analysts wrote in a monthly commodities outlook that they see pricesin a $925-$1,035 trading range during March. Analysts note that Johnson Mattheyexpects the global palladium market to remain in deficit in 2018. However,there has been selling in palladium-backed exchange-traded funds since holdingspeaked in late 2014, with the trend seen continuing this year. “During March,we see palladium continuing to struggle as the charts no longer look asconstructive as they once did,” INTL FCStone says. “In addition, we should notethat palladium was the number-one-performing commodity market last year and soa bit of a setback in 2018 should not be considered to be out of the question.”Sister metal platinum is seen trading between $920 and $1,005 during March,easing as a stronger U.S. dollar and higher yields weighs on theprecious-metals complex, INTL FCStone says.
By Allen Sykoraof Kitco News; asykora@kitco.com
Commerzbank: Italian Political Uncertainty Could Aid GoldDemand
Monday March 05, 2018 08:06
Uncertainty about Italian politics could be supportive forgold, says Commerzbank. Formation of a German government appears to be in thefinal stages after the Social Democrats approved a grand coalition, Commerzbanksays. “Federal Chancellor Angela Merkel is to be appointed for a further termof office next week, and a government should be in place by Easter,” the banknotes. “In Italy, however, forming a government is likely to prove considerablymore difficult even than in Germany following the weekend parliamentaryelections there. This is because the unclear political situation after theelection appears to make it impossible for any government to be formed in thenear future. The resulting uncertainty will presumably contribute to soliddemand for gold.”
By Allen SykoraFor Kitco News
Follow @AllenSykora
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.