MKS: 200-Day Average, $1,300 Level To Be Key Support For Gold
As gold’s slide continues, the 200-day movingaverage and psychologically important $1,300 level become a key support areafor the precious metal, says MKS (Switzerland) S.A. As of 7:55 a.m. EDT, spot gold was $7.40lower to $1,308.20 an ounce andbottomed at $1,307.70, its weakest level since March. ““Support-wise, we are nearing some key technical levels withthe 200 DMA at $1,304 and the psychological $1,300 level below that,” MKS says.On the upside, MKS says gold should find some resistance at the 100-day movingaverage. This now lies near $1,322.
By Allen Sykoraof Kitco News; asykora@kitco.com
BBH: Dollar Index Climbs Above 200-Day Average
Tuesday May 1, 2018 08:08
Brown Brothers Harriman points out that the U.S. dollar index - whichmeasures how the greenback is faring against a basket of currencies - has movedabove its 200-day moving average for the first time in more than a year. “Mostof the world's financial centers are closed for the May Day holiday, but thelack of participation has not prevented the extension of the U.S. dollar'srecovery,” BBH says. “The dollar index has traded above its 200-day moving averagefor the first time in a year. No new catalyst has emerged. Thewidening interest-rate differential in the dollar's favor over Germany, forexample, is unprecedented. Just like Fed officials can be more confidentthat their mandates are within reach (than it was before and more than theother major central banks), so too are investors.” The 200-dayaverage for the dollar index stands at 91.85. As of 7:51 a.m. EDT, the indexwas up 0.425 point to 92.055.
By Allen Sykoraof Kitco News; asykora@kitco.com
TDS Sees Gold Recovery In Latter Half Of2018
Tuesday May 1, 2018 08:08
TD Securities cautions that gold is movingtoward $1,300 an ounce on U.S. dollar strength, but also suggests the preciousmetal could rebound toward $1,350 later in 2018. “If we continue to see theU.S. economy do well and the Fed signals a hawkish tone, with many observersadvocating four hikes for the year, this could be bad news for gold for now,”TDS says. “However, considering the fact that the curve has flattened somewhatsince the 10-year Treasury yield moved to about 3%, that the momentum in theU.S. is weakening somewhat and that U.S. deficits are reaching spectacularlyhigh levels, the yellow metal should hold its own. While a move toward a low of$1,300/oz is possible in the not-too-distant future, we think there will be asteadier rebound toward $1,350s in the latter half of 2018.” As of 7:55 a.m.EDT, spot gold was $7.40 lower to $1,308.20 an ounce.
By Allen Sykoraof Kitco News; asykora@kitco.com
BMO: Declining Diesel Auto Market Share HeadwindFor Platinum
Tuesday May 1, 2018 08:08
The continuing move away from diesel-poweredvehicles is hurting platinum and helping palladium, says BMO Capital Markets.Diesel-powered cars require platinum for catalytic converters, whilegasoline-powered ones can use palladium. BMO cites data showing that theEuropean diesel market share has continued to fall, with the World PlatinumInvestment Council putting this at 38.5% in the first quarter, down from 41.5%in the fourth quarter after it had been over 50% over the course of 2015. “Thisongoing fall as customers shy away from diesel vehicles is an ongoing headwindfor platinum, which is thestaple of the diesel catalyst,” BMO says. “Essentially all this demand has beentaken by gasoline vehicles, benefitting palladium and rhodium.Platinum’s $400/oz discount to gold reflects this issue, but we would expectsome substitution of platinum into gasoline catalysts given the likelihood of asustained period of weaker pricing.”
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.