RBC's Gero: Gold Steady; Upside Capped By Strong Dollar
Gold is steady in the early going despite more U.S. dollar strength, says George Gero,managing director with RBC Wealth Management. Nevertheless, he adds,rising interest rates and U.S. dollar strength have capped the metal’s rally. “Sellers have appeared from emerging markets and Chinaas dollar needs increased,” Gero says. However, “buyers in euro zone, Italy,Greece, South America, Venezuela, Argentina, Brazil and some central banks haveevened out tonnage losses from ETFs [exchange-traded funds].” Around8:40 a.m. EDT, Comex December gold was $1.60 stronger at $1,190.20 an ounce.The December dollar index was up 0.320 point to 96.081.
By Allen Sykoraof Kitco News; asykora@kitco.com
Commerzbank: Palladium Prices RemainStrong
Monday October 9, 2018 09:00
Palladium prices have remained strong,even Monday when other precious metals were selling off, says Commerzbank. Spotpalladium topped $1,082 an ounce early Tuesday for its strongest level of themonth so far. “The world’s largest palladium producer envisagesa supply deficit of around 1 million ounces on the global palladium market thisyear,” Commerzbank says. “This is significantly higher than has been forecastso far by Johnson Matthey, for example. That said, the producer does expectdemand in the automotive industry to shift from palladium back to platinum ifthe price differential between the two precious metals widens any further.Currently the price gap is around $260 per troy ounce.”
By Allen Sykoraof Kitco News; asykora@kitco.com
BBH: U.S. Rates Continue To Be Focus Of Financial Markets
Monday October 9, 2018 09:00
Interest rates remain the focus of financial markets, says Brown BrothersHarriman. The U.S. bond market reopens Tuesday following the Columbus Dayholiday that shuttered bond markets and banks. “The 10-year yield made a new high near3.26% but has since stabilized near 3.25%,” BBH says. Analysts point out that anumber of Federal Reserve officials are scheduled to speak on Tuesday. Marketswatch these for clues on the future of monetary policy. Meanwhile, the ProducerPrice Index is due out Wednesday and the Consumer Price Index on Thursday.“Global equity markets remain under pressure, but today it’s more of a slowsimmer than a boil,” BBH says. “However, it’s clear that the U.S. rates storyhas started to impact equity markets.”
By Allen SykoraFor Kitco News
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