Standard Chartered: June Lows Present Buying Opportunity In Gold
Standard Chartered looks for gold weaknessinto next week’s meeting of the U.S. Federal Open Market Committee but alsoforecasts that any cycle lows in the price that will present a buyingopportunity. Analysts note that gold regained $1,300 an ounce recently but hasnot been able to generate further upside momentum. “Investors appear to lackconviction in gold ahead of the June FOMC and European Central Bank meetingsand the U.S. summit [with North Korea] in Singapore, but positioning is light,suggesting scope for upside risk,” Standard Chartered says. The bank says itlooks for the U.S. dollar to resume a weakening trend, which tends to helpgold. Meanwhile, Standard Chartered points out that local gold prices in Indiahave fallen towards 30,500 rupees per 10 grams. “Should they fall towards INR30,000/10g, we believe that the physical demand response is likely to bestronger,” Standard says. “We still expect further downside risk around theJune FOMC meeting, but after the seasonally slow period, the good monsoonforecast [for India] bodes well for demand. We expect the ECB to end QE[quantitative easing] this year and raise rates in H1-2019, supporting EUR/USD,and in turn gold.”
By Allen Sykoraof Kitco News; asykora@kitco.com
Commerzbank: ETF Silver Holdings Rise ThisWeek
Friday June 8, 2018 08:40
Interest in silver amongexchange-traded-fund investors has picked up along with prices in the metal,says Commerzbank. “Silver outperformed gold once again yesterday,making good some more ground vis-? -vis gold,” the bank says. Still, while themetal threatened $17 an ounce on Thursday, it was unable to break out of itsmulti-month trading corridor, Commerzbank says. “All the same, investorsentiment towards silver has improved of late. The silver ETFs tracked byBloomberg have so far seen inflows of 175 tonnes this week, whereas gold ETFshave recorded outflows,” the bank says. ETFs for precious metals trade like astock but with metal put into storage to back the shares.
By Allen Sykoraof Kitco News; asykora@kitco.com
SP Angel: Silver To Outperform Gold InNear Term
Friday June 8, 2018 08:40
Silver could keep outperforming gold dueto its role as an industrial metal, says commodities brokerage SP Angel.“Despite pulling back since yesterday’s trading, [an] improving demand outlookfor silver has drawn the precious metal to the largest weekly gain since April20, climbing 1.7%,” the firm says. Analysts cite a report this week from theconsultancy Metals Focus saying that global demand is seen rising 2% to 970.5million ounces in 2018, with a narrowing surplus tightening the market. “Whenindustrial metals growth remains strong, silver can outperform, given 50% ofconsumption focuses on industrial markets,” Metals Focus says. “Further, giventhe stretched gold-to-silver ratio, silver is expected to continue tooutperform in the near term.”
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.