Comex April gold futures have probed above the 200-day average. “You’re seeing some technical stuff (buying),” says Charles Nedoss, senior market strategist with LaSalle Futures Group. “The 200-day had been resistance. Let’s see if it can close above there.” The move was aided by weakness in the U.S. dollar, he explains. Some traders with short, or bearish, positions are buying now in order to exit those trades, he adds. As of 10:16 a.m. EST, Comex April gold was $8.20 higher to $1,134.40 an ounce and traded as high as $1,135.90. The 200-day average stands at $1,134.20.
By Allen Sykora of Kitco News; asykora@kitco.com
MKS, Commerzbank: Gold Hovering Just Below 200-Day Moving Average
Wednesday February 03, 2016 10:09
Gold is trading not far from chart resistance at the 200-day moving average, say Commerzbank and MKS (Switzerland) SA. As of 8:08 a.m. EDT, Comex April gold was at $1,130.30 an ounce and hit a peak of $1,131.10. The 200-day average stood at $1,134.20. Gold “has not yet overcome the chart-technically important 200-day moving average. Should it do so soon, this should lead to technical follow-up buying,” Commerzbank says. Adds MKS: “There was more risk aversion overnight which should have been beneficial to gold, although stubborn resistance above $1,130 (200 DMA) continued to cap things, on multiple occasions throughout the day.”
By Allen Sykora of Kitco News; asykora@kitco.com
HSBC: ‘The Near-Term Outlook For Gold Remains Positive’
Wednesday February 03, 2016 08:17
HSBC says that “the near-term outlook for gold remains positive.” Analysts cite expectations for crude oil to remain soft. The recent market trend has been for oil weakness to be read as a sign of sluggish global economic activity, in turn hurting equities. “This along with geopolitical stresses for producers associated with low oil prices is likely to keep buoying gold,” HSBC says. Further, analysts point out that while Kansas City Fed President Esther George said Tuesday that she favors continuing to hike interest rates, she also pointed out that the Fed would still be highly accommodative. “This strikes us an overlooked but bullish point for gold,” HSBC says. The bank also cites the euro’s recovery back above $1.09 as a factor helping the yellow metal.
By Allen Sykora of Kitco News; asykora@kitco.com
Commerzbank: U.S. Auto Sales ‘Should Give Tailwind’ To Platinum Group Metals
Wednesday February 03, 2016 08:17
U.S. auto sales data released on Tuesday was supportive for platinum and palladium, used in auto catalysts, says Commerzbank. Both metals are higher early Wednesday. “As data of Ward’s Automotive Group show, vehicle sales in the U.S. have made a dynamic start to the new year, with 17.46 million vehicles being sold in January on a seasonally adjusted and annualized basis,” Commerzbank says. “This was 5% more than the previous year and the highest sales rate for January in 10 years.” Sales were stimulated by low gasoline prices and low interest rates, with trucks and sport-utility vehicles in demand again. “Robust vehicle sales in the U.S. will be a mainstay of demand this year too in our opinion, especially for palladium, as the U.S. (car) market is very gasoline dominant,” Commerzbank says. “This should give tailwind to the price during the course of the year.”
By Allen Sykora of Kitco News; asykora@kitco.com
