As gold continues to trade in “no man’s land,” analysts at Triland Metals say the short-lived rally of 2016 came as no surprise. According to the analysts, the yellow metal remains stuck between $1,071-1,097. “[T]he bullish sentiment of early January seems a far cry away now,” they say in a research note Tuesday afternoon. The fact that “gold should be performing and it isn’t says enough about its motor,” they add. After hitting an intraday high of $1,094.50 an ounce, February comex gold futures moved lower and were last quoted down $2.70 at $1,088. “PGMs find a bounce but this may be brief respite given the weight amongst commodities,” they note. April platinum and March palladium were last quoted up at $828.90 an ounce and $495.05 an ounce, respectively.
By Sarah Benali of Kitco News; sbenali@kitco.com
Gold At 'Absolute Inverse Relationship' To Equities, Could Move Higher - iiTrader
Tuesday January 19, 2016 11:51
Gold remains in a consolidation pattern between the $1,084.90–1,085.20 levels, note analysts from Chicago-based iiTrader. “Rallies to resistance at the 1092.2-1096.2 level have been fought with selling,” they say in a research note Tuesday morning. Despite this, the analysts continue, there is still a chance for gold to move higher. “If commodity prices can stabilize and gold can break away from what has become an absolute inverse relationship to the equity market, we believe that gold is poised to squeeze shorts in a bullish leg higher,” they explain. February Comex gold futures opened slightly higher Tuesday but have backed down since then and were last quoted $5.80 lower at $1,084.90 an ounce.
By Sarah Benali of Kitco News; sbenali@kitco.com
Gold To Be Range-Bound But With Headwinds Ahead – BMO Capital Markets
Tuesday January 19, 2016 10:18
Gold prices managed to have a good start to the year on safe-haven demand, but analysts at BMO Capital Markets say they don’t expect much action in the market. “Prices are to be range-bound near term on conflicting factors – potential for USD strength on the downside, safe-haven demand for the upside,” BMO analysts say in a research note Tuesday morning. “We believe chatter of the next Fed rate hike will return in full force over the next couple of months, which is negative for gold and silver.” However, they note that once the Fed hikes rates again, it will have less of an impact on the price of gold. “U.S. election year will be another test for gold prices,” they add. BMO analysts expect gold prices to average $1,100 an ounce in the first quarter and $1,050 for the year
By Sarah Benali of Kitco News; sbenali@kitco.com
Commerzbank: Jan. U.S. Mint Eagle Gold Coin Sales Nearly Match Jan. 2015 Already
Tuesday January 19, 2016 09:58
Sales of gold coins are off to a good start in 2016, based on U.S. Mint sales, suggests Commerzbank. Data on the Mint’s website show that 75,000 ounces of American Eagle gold coins and 4 million ounces of Eagle silver coins have been sold so far in January. “In the case of gold, this equates to almost the total January figure for last year,” Commerzbank says. Eagle coin sales in January 2015 were 81,000 ounces for gold and 5.53 million ounces for silver.
By Allen Sykora of Kitco News; asykora@kitco.com
TDS Sees Gold In Range During Uncertainty About Next Fed Rate Hike
Tuesday January 19, 2016 09:54
Gold may be range-bound for a while, says TD Securities. The factors that helped gold at the end of last week – safe-haven demand, equity weakness, lower long-dated bond yields and reduced expectations for Federal Reserve rate hikes in the first three months of the year -- may continue to help gold for the foreseeable future, TD Securities says. “These factors are likely to be supportive for gold for much of Q1- 2016, as traders will continue to think the Fed will be dovish for longer,” TDS says. As a result, gold “should trade in a range between $1,113-1,070/ounce so long as there is uncertainty surrounding the Fed's next rate hike.” Still, there are risks for gold, TDS continues, such as “some disconnect between what the Fed is saying and the market is pricing in.” U.S. central bankers have made hinted at four possible hikes this year, while the market is pricing in one or two, TDS adds.
By Allen Sykora of Kitco News; asykora@kitco.com
