TD Securities: Dollar Continuing to Put Pressure On Gold
Gold and otherprecious metals have continued to feel the weight of a strong dollar, with theU.S. economy continuing to outperform the world, says TD Securities. The mostrecent Commodity Futures Trading Commission data showed that money managerswere again cutting long positions in gold and silver futures due to themuscular greenback and rising interest rates, TDS says. “With U.S. wagesrecording a 0.4% increase last month, inflation running at near target and theU.S. economy continuing to post fairly robust activity, an important contingentof the market is questioning the wisdom of being so far below the dots,” TDSsays. “As such, gold did not manage to stay above $1,200/oz and is at risk oftesting the lower bound as the USD and rates will continue to seek higherlevels in the near term. Silver also performed poorly, as sentiment declineddue to its strong links to gold and as result of weak industrial demand. Thewhite metal is now trading at its lowest relative to gold since 1995.”
By Allen Sykoraof Kitco News; asykora@kitco.com
Commerzbank: WeakChinese Car Sales Hurt Platinum, Palladium
Tuesday September 11, 2018 08:25
Weak Chinese autosales apparently played a role in platinum and palladium weakness last month,says Commerzbank. Analysts cite data from the ChinaAssociation of Automobile Manufacturers showing that sales declined by 4.6%year-on-year to 1.79 million cars. This came after a fall of 5.3% in July. Theassociation’s general secretary was quoted as saying that the Chinese havebecome more cautious about making large purchases due to a slowing economy.“The trade dispute with the U.S. has also been weighing on consumer sentiment,”Commerzbank says. “The weak car sales presumably played a part in platinum andpalladium prices falling for a time to multi-year and multi-month lows,respectively, in August.”
By Allen SykoraFor Kitco News
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