CME Group: Average Daily Metals Volume Soars 23% In 2017
Exchangeoperator CME Group reports that average daily volume in metals markets increased 23% to a record 568,000contracts during 2017. This far exceeded the average daily volume for all CME marketscombined, which was up 4% from 2016 to hit a record 16.3 million contracts.Gains in average daily volume for other markets included interest rates, 9%;foreign exchange, 7%; energy, 6%; and agriculture, 2%. For just the month ofDecember, average metals volume rose 48% year-on-year to 531,000 contractsdaily. Gold futures andoptions ADV was up 47% to 303,000 contracts, while the same for silver was up29% to 75,000 contracts. In the case of copper, this soared 74% to 119,000contracts.
By Allen Sykoraof Kitco News; asykora@kitco.com
SP Angel: Rate Expectations, PhysicalDemand, Geopolitics Support Gold
Wednesday January 03, 2017 08:41
Commodities brokerage SP Angel listsseveral factors offering support for the gold market. “Expectations of a slower pace of interest-ratehikes by the U.S. Federal Reserve helped to boost gold prices to 3.5 monthhighs to start 2018,” SP Angel says. “Key factors for the bullion market intothe year will focus on the rate of normalization of interest rates by thecentral banks, the length of the current equity rally, the longer-term impactof U.S. tax reforms, and the timing for a pickup in inflation.” Growth inphysical gold demand from the world’s second-largest consumer, India, isexpected to support global prices into the new year, SP Angel says. “Jewelersreplenished inventories amid a rebound in retail demand as imports surged 67%in 2017 to 855 tonnes,” SP Angel says. The firm also cites a supportivetechnical-chart picture, saying wave-pattern and Fibonacci analysis “suggestspot gold may break a resistance at $1,326/oz and rise to $1,380/oz by the endof the first quarter of 2018.” SP Angel adds that U.S. President Donald Trump“escalated his words of war” with North Korea’s leader, thereby “giving furthersupport for the safe-haven investment.”
By Allen Sykoraof Kitco News; asykora@kitco.com
MKS: GoldAwaits Seasonal Pickup In Asian Demand
Wednesday January 03, 2017 08:41
Gold hasstarted out 2018 strongly, drawing support from a soft U.S. dollar, even thoughAsian physical demand has not picked up yet, says MKS (Switzerland) SA. Spotmetal hit a high of $1,321.45 an ounce overnight, its strongest level sincemid-September, before easing back slightly. “Signs of seasonal Asian buying areyet to be seen in any meaningful way, which does make it difficult to chasethis move higher, although we do expect this to begin filtering in over thenext week or so,” MKS says. Data from the Commodity Futures Trading Commissionshows that futures speculators increased their bullish positioning in gold byaround 26% in the latest reporting week, MKS notes. The firm adds that readingsfor the Relative Strength Index suggest “gold is definitely sitting inoverbought territory (75+); however, general flows suggest that a slow grindhigher to stable pricing is likely.” The next upside target sits at $1,329,which is a retracement level of the September-December sell-off, while nearbysupport lies around $1,315, followed by $1,288 to $1,292, MKS says.
By Allen SykoraFor Kitco News
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