SP Angel: Gold Range-Bound Amid Offsetting Factors
Gold prices are flat amid offsetting factors,says commodities brokerage SP Angel. Investors are sidelined with a strong U.S.dollar after seven weeks of gains and U.S. data bolstering the FederalReserve’s case to lift interest rates again next week, analysts say. “Flattrading mirrors the lack of volatility in the precious metal, with a gauge of30-day volatility in Comex futures sinking to the lowest level in four months,standing around 9%,” SP Angel says. Analysts later add: “Gold prices have facedcombating indicators, with a strengthening dollar being bearish for gold andglobal geopolitical risks bullish, making it difficult for bullion to move outof its current range.” Just before 8 a.m. EDT, spot gold was 60 cents softer at$1,290.90 an ounce.
By Allen Sykoraof Kitco News; asykora@kitco.com
Commerzbank: Palladium Has $100 Premium OverPlatinum
Tuesday June 5, 2018 08:07
Auto-sales data help explain why palladium has a$100-per-ounce price premium over platinum, says Commerzbank. “We believe onepart in this was played by the solid vehicle sales in the U.S. in May that werereported late last week,” the bank says. “Because the U.S. market isgasoline-dominated, palladium is likely to have profited from this.” The bankwas referring to the fact that gasoline-powered vehicles use palladium forcatalytic converters, while diesel-powered ones require platinum. Commerzbankpoints out that data from the German Association of the Automotive Industry(VDA) shows that sales of diesel cars in the country were some 27% loweryear-on-year. In May, diesel cars accounted for only 31% of all new carregistrations, compared to more than 40% a year ago. “This weighed on platinum,which is used in the production of diesel auto catalysts,” Commerzbanksays. Just before 8 a.m.EDT, spot palladium was down $7 to $983 an ounce, while spot platinum was $7weaker to $893.
By Allen Sykoraof Kitco News; asykora@kitco.com
Commerzbank: ETF Gold Outflows Come To Halt
Tuesday June 5, 2018 08:07
Hefty outflows from global exchange-tradedgold funds came to a halt on Monday, points out Commerzbank. “Gold ETFs lost nearly 14 tonnes [of gold holdings] last Thursdayand Friday, thereby reversing all of the inflows since the start of May,” thebank says. “Yesterday saw a slight inflow of 1.4 tonnes.”
By Allen SykoraFor Kitco News
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