Gold was drawing bargain hunting Thursday after a recent decline, enabling the precious metal to rise despite a stronger tone in stock-index futures and an uptick in the U.S. dollar index, said George Gero, managing director with RBC Wealth Management. As of 8:34 a.m. EST, Comex April gold was $4.90 higher to $1,567.70 an ounce. The futures for the Dow Jones Industrial Average were around 124 points higher, while the March dollar index was up 0.027 point to 98.185. “I’ve been saying you can’t count out gold because of higher stocks and a higher dollar index only,” Gero said. “That eventually will be inflationary. And buyers, looking ahead, have been bargain hunting for two days.” Further, he said, some investors are buying gold as a hedge in case equities tumble from their lofty heights. And, he continued, the metal is benefiting from “benign interest rates in 22 countries other than the U.S.”
By Allen Sykora of Kitco News; asykora@kitco.com
Commerzbank: palladium market unfazed by coronavirus
Thursday February 6, 2020 08:52
Palladium prices remain lofty despite the coronavirus outbreak in China that spooked other markets, said Daniel Briesemann, analyst with Commerzbank. He cited reports that the country has already scaled back auto production, with the China Passenger Car Association estimating that 2020 auto sales could fall by up to 5% due to the virus. Further, output at plants in other countries such as South Korea has been reduced or suspended due to a lack of components. “The automotive industry is closely interwoven on an international level, so the outages in China are also having an impact elsewhere,” Briesemann said. “This does not appear to be bothering the palladium price much, however. Despite the negative prospects, it briefly climbed to $2,500 per troy ounce yesterday, though it closed trading almost unchanged.” Around 8:45 a.m. EST. spot palladium was down $23 to $2,292 an ounce.
By Allen Sykora of Kitco News; asykora@kitco.com
TDS: ‘gold bug’ will remain ‘alive in 2020’
Thursday February 6, 2020 08:52
Gold prices are higher early Thursday despite a continuing rally in equities, and TD Securities said it expects gold to climb further this year. “The yellow metal has bounced off $1,550/oz support to trade slightly higher this morning, even as risk appetite continues to firm and equities reach record levels once again,” TDS said. “The rush of safe-haven buying has likely reversed, with some further liquidations from the record stockpile of ETF [exchange-traded-fund] holdings and extended positioning not off the table. But we reiterate that while the gold trade may be crowded, suggesting range-bound trading will continue to be the norm for the time being, we expect that the structural growth in investment demand for the yellow metal, along with continue suppression of real rates across the globe will keep the gold bug alive in 2020.” As of 8:45 a.m. EST, spot gold was $7.70 higher to $1,563.30 an ounce.
2020-02-06 13:54:00Z
https://www.kitco.com/news/2020-02-06/Gold-Silver-Precious-Metals-Daily-News-Briefs.html
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