Commerzbank is chalking up the retreat in gold prices to selling in the form of profit-taking, adding that holdings of the metal by exchange-traded funds fell sharply since the middle of last week. As of 8:42 a.m. EST, spot metal was down $7.80 to $1,554.30 an ounce. Friday’s U.S. jobs report showed that a lower-than-expected 145,000 new jobs were created in December, while wages grew less sharply than expected. “Nonetheless, the labor market continues to play an important role in supporting private consumption and thus the economic upswing in the U.S.,” Commerzbank said. Thus, the softer data will not lend buoyancy to the gold price for any length of time, the bank said. “Instead, we expect the profit-taking in gold to continue, as already happened last week,” Commerzbank said. “The gold ETFs tracked by Bloomberg have seen outflows of nearly 20 tons since mid-last week.”
By Allen Sykora of Kitco News; asykora@kitco.com
BMO: rhodium to remain underpinned amid tight supplies
Monday January 13, 2020 08:53
BMO Capital Markets looks for high-flying rhodium prices to remain underpinned. The thinly traded platinum group metal has risen by some 225% over the past year, outpacing sister metal palladium, BMO said. Rhodium prices posted by catalyst manufacturers over the past week have been over $8,000 an ounce. “This is not an all-time high for rhodium; in mid-2008, it flirted with $10,000/oz, though by January 2009 it was around a tenth of this level,” BMO said. “With no obvious supply-side reaction to rising prices in the short term, and with Chinese auto sales recovering, rhodium is likely to be well-supported over the coming months, though as with palladium, the medium-term risk of substitution and thrifting is increasing.”
By Allen Sykora of Kitco News; asykora@kitco.com
Bannockburn: investor focus turning from tensions to macroeconomic data
Monday January 13, 2020 08:53
With Mideast tensions abating for now, investors are likely to turn their attention to macroeconomic data, but markets can be expected to respond if tensions flare up once again, said Marc Chandler, chief market strategist with Bannockburn Global Forex. Markets last week concluded recent U.S.-Iran tensions have de-escalated, but Chandler says he doubts that Iran’s missile strike on U.S. bases in Iraq brought “meaningful closure,” saying “cessation of hostilities should not be confused with peace.” Chandler later added, “Investors tend to ignore the low but constant geopolitical jockeying for position, like the background echo of the Big Bang that scientists can detect. However, when it geopolitical tensions escalate, the market spasms. With the tensions subsiding, investors’ attention will likely return to macroeconomic news in a chock-full week of high-frequency reports.”
2020-01-13 13:55:00Z
https://www.kitco.com/news/2020-01-13/Gold-Silver-Precious-Metals-Daily-News-Briefs.html
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