Citi: 'Precious-Metal Complex May See Prices Peak In 2Q 17'
Citi Researchsees precious metals peaking in the current quarter. "Reluctant to pick upslack in the market, investor anxiety suggests further headwinds persist into3Q 17," the bank says. "Multi-year low price volatility for both gold andsilver reinforce limited opportunity for investor participation and suggestslittle deviation from the current trend." The bank says the bid for gold hasremained intact since mid-May, driven by political uncertainty in the U.S. andU.K, with money managers adding to their net-long position in Comex goldfutures. Still, the bank continues, "Absent a tail-risk event such as anon-Conservative majority [in the U.K.] prompting a safe-haven bid, wereiterate our view that the precious-metal complex may see prices peak in 2Q17."
By Allen Sykoraof Kitco News; asykora@kitco.com
Commerzbank: GoldHits Six-Week High Due To Multiple Factors
Tuesday June 06, 2017 08:27
Multiple factorshave pushed gold prices to a six-week high, says Commerzbank. As of 8:15 a.m.EDT, spot metal was up $11.40 to $1,290.45 an ounce and peaked at $1,293.70,its most muscular level since April 17. Commerzbank said Middle East tensionsare one supportive influence, with Saudi Arabia, Egypt, the United ArabEmirates and Bahrain cutting diplomatic ties with Qatar, with Qatar accused ofsupporting terrorism. "What is more, the U.S. labor market data came as adisappointment on Friday, which dampened expectations of Fed rate hikes,"Commerzbank says. "After a rate hike that is still widely expected next week,only one more rate hike by the end of 2018 is priced in by the Fed fundfutures. In response, the U.S. dollar dropped on a trade-weighted basis to itslowest level in seven months, as did yields on 10-year U.S. Treasuries.Furthermore, key events are taking place this Thursday: the ECB's meeting, thegeneral elections in the United Kingdom, and the hearing of former FBI Director[James] Comey before a Senate committee."
By Allen Sykoraof Kitco News; asykora@kitco.com
MKS: Gold PricesWithin Sight Of 2017 High
Tuesday June 06, 2017 08:27
Light positioningand upcoming geopolitical events may propel gold still higher, says MKS(Switzerland) S.A. The metal extended recent gains overnight "with relativeease," says Sam Laughlin, senior trader of precious metals. "A break through$1,285 on the back of further USD/JPY declines leading into European hoursprovided the impetus for a renewed push higher...," he continues, adding thatspot gold is now within sight of its 2017 high. "Generally light positioningand numerous upcoming geopolitical events should continue to underpin demandfor the metal, with targets extending to the 2017 high around $1,295 and thepsychological level of $1,300 above this."
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 precious metal products, 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.  |