Commerzbank: Swiss Aug. Gold Exports Rise; India, China Buying
Swiss gold exports picked up in August, says Commerzbank.Analysts cite data from the Swiss Federal Customs Administration data showingthat gold shipments rose 30% month-on-month to a 14-month high of 150.5 tonnes.“Significantly more gold was shipped to China and India in particular, whichpoints to reviving demand in these two leading gold-consumer countries,”Commerzbank says. Swiss gold exports to India rose to 39.5 tonnes, the mostsince May 2017. “This is consistent with the higher gold imports reported bythe Indian Ministry of Finance,” Commerzbank says. “The current debate about apossible increase in gold import duty could drive demand even higher, at leastin the short term.” Meanwhile, Swiss gold exports to China climbed to 44.3tonnes in August, the second-highest level this year. “This contrasts with aslump in deliveries to Hong Kong, however, with the result that China and HongKong combined saw imports that were well below the average monthly level of thefirst half of the year,” Commerzbank adds.
By Allen Sykoraof Kitco News; asykora@kitco.com
SP Angel: Gold Steady but Bulls See‘Encouraging Signs’
Thursday September 20, 2018 08:05
Gold bulls see “encouraging signs” even withprices flat despite a softening U.S. dollar amid easing concerns overfull-blown trade war, says commodities brokerage SP Angel. As of 7:48 a.m. EDT,spot gold was 70 cents higher at $1,204.40 an ounce. “Gold bulls are seeingencouraging signs for a turnaround in the metal, after falling for five straightmonths, the longest slump since 2013, but showing resilience to hold near$1,200/oz since later August,” SP Angel says. “Recent gains in gold areinfluenced by signs of a slowing greenback. The dollar posted monthly increasesin four of the past five months through August as concerns over global tradetensions boosted demand for the currency as a haven, eroding support forbullion. The Bloomberg Dollar Spot Index is down slightly this month afterreaching a more than one-year high in August. The gauge is hovering close toits 100-day average for the first time since April.”
By Allen Sykoraof Kitco News; asykora@kitco.com
BBH: Market Sees U.S. Rates Gaining 100 BasisPoints By End Of 2019
Thursday September 20, 2018 08:05
Financial markets are factoring in anotherfull percentage-point hike in U.S. interest rates by the end of next year, saysBrown Brothers Harriman. Treasury yields have been rising lately as a result. “It's not just U.S. Treasury yields that are rising to cycle highs,” BBHsays. “Theimplied yield on the January 2020 Fed funds futures contract is trading around2.86%, a new cycle high. That suggests another 100 bp [basis points] oftightening between now and end-2019. We can break that down further intotwo hikes still to go in 2018 and two more in 2019. The market is movingcloser and closer to pricing in three hikes next year, which is what the Fedsees now.”
By Allen SykoraFor Kitco News
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