INTL FCStone: Dollar, Treasury Yields Pressure Precious Metals

By Kitco News / April 23, 2018 / www.kitco.com / Article Link

Precious metals remain on the defensive, with Comex June gold falling as far as $1,325.30 an ounce, whichis the weakest level since April 6. “Theprecious metals complex as a whole is also being buffeted by several otherexogenous variables, including a modest strengthening in the dollar, coupledwith rising U.S. 10-year rates that hit a fresh high of 2.95% on Friday,” saysINTL FCStone. Ten-year yields have climbed further to a peak of 2.975% so faron Monday. “In the geopolitical sphere, gold has been knocked back by news outover the weekend that North Korea will now suspend its missile tests andlaunches and will also close down a key launching site in the northern part ofthe country,” INTL FCStone says. “All this comes in advance of key talks thatPresident Trump is going to be having with the North Korean leader in a fewweeks’ time. Some are cautioning that the North Koreans are bluffing, but inour view, there is a chance they can go all the way given the sanctions squeezethey are under, coupled with the fact that their current leader may notnecessarily engage in the same bait-and-switch negotiating tactics his fatherwas involved in, which doomed previous negotiations.” As of 9:55 a.m.EDT, Comex June gold was down $12.70 to $1,325.60 an ounce, while May silverwas 46.3 cents softer to $16.70 an ounce.

By Allen Sykoraof Kitco News; asykora@kitco.com

 

Analysts:ETF Gold Holdings Rise For 13th Straight Day

Monday April 23, 2018 08:10

As last week wound down, holdings of gold by global exchange-tradedfunds rose for the 13th consecutive business day, analysts report.The ETFs trade like a stock but track the price of the commodity, with metalput into storage to back the shares. “Unresolved geopolitical issues draw exchange-traded funds tocontinue to add to gold holdings for the 13th straight day,increasing holdings by 252,461 ounces of gold to bring this year’s netpurchases to 3.1 million ounces,” says commodities brokerage SP Angel. Analystswith Commerzbank cite Bloomberg data showing that nearly eight tonnes wereadded to ETF holdings on Friday. “As such,holdings were topped up by 17 tonnes last week and by 53 tonnes since thebeginning of the month,” Commerzbank says. “That is almost as much as in thewhole of the first quarter.”

By Allen Sykoraof Kitco News; asykora@kitco.com

 

Gold HurtBy Easing Trade Fears, Soft Dollar, Treasury Yields

Monday April 23, 2018 08:10

Goldis down for the third straightbusiness day, with analysts citing several factors. Commodities brokerage SPAngel points to easing fears of an escalating global trade conflict after U.S.Treasury Secretary Steven Mnuchin hinted at a truce with China. In particular,analysts cite news that Mnuchin announced a trip to China at a time whenmarkets fear that a trade war could harm the global economy, with Mnuchinexpressing cautious optimism on prospects of an agreement. “A firm U.S. dollar and still-rising yields on 10-year U.S.Treasuries - the latter are nearing the 3% mark - are putting pressure on goldas the new week begins,” Commerzbank analysts report. “The gold price istherefore continuing the correction it began mid-last week and is trading at a good$1,330 per troy ounce this morning....One role in the falling gold price ispresumably being played by the further signs of detente in the North Koreanconflict after North Korea’s leader Kim Jong-un announced at the weekend thatno further nuclear weapon testing would be carried out for the time being.” As of 8 a.m. EDT, ComexJune gold was $8.30 lower to $1,330 an ounce.

By Allen Sykoraof Kitco News; asykora@kitco.com

 

CopperJournal: Silver ‘Will Surely Follow’ Any Gold Breakout

Monday April 23, 2018 08:10

Look forsilver to fare better than gold if the latter breaks out to the upside andsilver “surely” follows, says John Gross in weekly commentary with the CopperJournal report. The report addresses not only copper but other metals as well.Gross says charts of the silver and gold reflect “a growing divergence and widening gap,which we expect will begin to narrow soon.” While gold has been making higherlows since January 2016, its highs have been capped not far above the $1,350area, Gross notes. “Silver, on the other hand, has been moving sideways betweenroughly $15.35 and $18 over the past 16 months,” Gross reports. “With mostother markets moving up, we are hard pressed to think the cap on gold will remainintact. And if /when gold breaks out, silver will surely follow.”

By Allen Sykora

For Kitco News

Contactasykora@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.

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