RBC's Gero: Gold Softer; 'It's Still All About The Dollar'
A retreat in gold continues in response to a strong U.S. dollar, says George Gero, managing director with RBC WealthManagement. Market participants appear poised to push the dollar index backabove 97, Gero says. As of 9:06 a.m. EDT, the spot dollar index was up 0.209point to 96.788. Comex December gold was down $1.50 to $1,226.10 and earliertraded down to $1,221.40. “It’s still all about the dollar,” Gero says, citing news thatthere could be more tariff hikes in the trade war with China if a meeting nextmonth between the presidents of the two countries does not resolve the issue.
By Allen Sykoraof Kitco News; asykora@kitco.com
TD Securities: Trend Followers CouldIncrease Shorts In Gold If Chart Level Fails
Tuesday October 30, 2018 09:26
TD Securities says Commodity TradingAdvisers might start increasing bearish bets, or short positions, if gold fallsthrough certain downside levels. Analysts say “with the U.S. dollar indexcontinuing to firm, CTAs are looking to the downside in precious metals as abreak below the $1,213.50/oz range would imply that systematic trend followerswould be set to increase their shorts in gold. In platinum, prices will have toclose below the $832/oz mark for CTAs to maintain their recently added shorts.That being said, we will continue to keep a close eye on palladium, [which]could be subject to the most significant flow in the complex should pricesbreak below the $1,050/oz range.”
By Allen Sykoraof Kitco News; asykora@kitco.com
MKS: Gold Move Below $1,225 ‘Cleared Out’Some ‘Weaker Long Positioning’
Tuesday October 30, 2018 09:26
Gold is softer, with weakness setting induring Asia-Pacific trade in response to a stronger U.S. dollar, with someso-called weak longs - bulls who had just gotten into the market - beingcleared out, says MKS (Switzerland) S.A. “The greenback remained elevatedthroughout the session, while USD/CNH held above 6.97 to see Chinese demandmuted,” MKS says. The Shanghai on-shore gold eased toward $6.50 followingfurther dollar/Chinese yuan strength around the fix, MKS says. “The New Yorktest underneath $1,225 has almost certainly cleared out some of the recentweaker long positioning; however, a test underneath $1,220 cannot be ruled outshould U.S. equities manage to regain their footing and the dollar remainfirm,” MKS says. “Initially we look to $1,230 as a key pivot point, with broadextension to the more important $1,235.” Around 8:52 a.m. EDT, the U.S. dollarindex was up 0.275 point to 96.625. Shortly after this, spot gold was $4.50softer to $1,224.10 an ounce.
By Allen Sykoraof Kitco News; asykora@kitco.com
Commerzbank: Robust Palladium Prices NotYet ‘Headache’ For Carmakers
Tuesday October 30, 2018 09:26
High palladium prices do not seem to be causing a “headache”for automobile producers yet, says Commerzbank. Spot metal hit a record highlast week. The main industrial use is catalytic converters in automobiles,leaving analysts wondering whether some carmakers might shift to less expensiveplatinum. “One major U.S. manufacturer reported yesterday that it had no plansas yet to replace palladium with platinum again, explaining that retoolingfactories is expensive and a long-term decision,” Commerzbank says. “Any suchsubstitution would need to pay for itself over a 1.5- [to] 2-year cycle.”
By Allen SykoraFor Kitco News
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