Latest news with #CommodityStrategy
Wall Street Journal
6 days ago
- Business
- Wall Street Journal
Gold Edges Lower Amid Trade Deal Hopes, Risk Appetite
2347 GMT — Gold edges lower in the early Asian session. 'It looks increasingly likely the U.S. moved closer to trade deals with China and other key trading partners,' TD Securities' Bart Melek says in a research report. Also, the Iran-Israel cease-fire is reviving risk appetite, the head of Commodity Strategy says. 'While we judge that gold may still move lower, a deep rout is not expected as we see firm technical support at plus/minus $50 of $3,100/oz,' Melek adds. Spot gold is 0.2% lower at $3,267.43/oz. (
Khaleej Times
21-05-2025
- Business
- Khaleej Times
As gold pauses, is platinum ready to shine for investors?
As gold continues to scale back towards record highs after a pause last week, investors may see an opportunity in another precious metal — platinum. Platinum, an almost forgotten semi-industrial metal, has been struggling for momentum for years now. However, recently it has been in the process being boxed into a tightening range, which sooner or later will yield a breakout, analysts say. Platinum, primarily mined in South Africa while attracting most of its demand from the production of catalytic converters and laboratory equipment, trades historically cheap, not least compared with gold, which, supported by strong central bank demand since 2022, has seen its value over platinum rise to hit a peak a month ago of 3.6 ounces of platinum to one ounce of gold. Since then, the ratio has narrowed to around 3.2, with platinum gaining five per cent while gold has lost close to six per cent, with the white metal benefiting from the 90-day US-China trade truce, brightening the economic outlook. Gold, for the same reason, has seen its haven appeal deflate, triggering some profit-taking. 'Eventually, the narrowing trading range — which is currently being challenged to the upside — will yield a breakout, and only then are we likely to see whether demand from technically focused traders looking for fresh momentum will be enough to push prices higher, or whether gold's appeal as the ultimate safe haven remains too strong,' Ole Hansen, Head of Commodity Strategy, Saxo Bank, said in a note. Having traded sideways for the past decade, averaging $955 per troy ounce during this time, a change will require a breakout, and for that to happen, analysts are focusing on resistance around $1,012, which is being tested and challenged today, and ultimately on the shown downtrend from 2008, which this May on a monthly close is located around $1,025. The positive sentiment being supported by fundamental news after the World Platinum Investment Council, in their latest Platinum Quarterly report, forecast a deepening market deficit with supply outstripping demand by close to one million troy ounces. This marks the third successive year where above-ground inventories are being drawn in order to meet demand from the automotive sector, and not least a resurgence in Chinese demand for jewellery, bars, and coins, culminating last month when Chinese jewellers and investors imported the largest amount in a year, due to its relative stability and mentioned cheapness compared to gold, Hansen said. In the meantime, speculators in the COMEX futures market, which according to CTFC's widest definition used in their weekly Commitment of Traders report, are managed money accounts such as hedge funds, and other reportables unsurprisingly, given the lack of direction — continue to trade platinum with a neutral to a small long bias. Meanwhile, longer-term focused investors using platinum-backed ETFs registered in the West currently hold 3.18 million troy ounces according to data compiled by Bloomberg, up from an April 2024 low at 2.89 million, but well below the 2021 peak near 4 million ounces. The London Platinum Week 2025, organised by the London Platinum and Palladium Market (LPPM), is being held this week, and it may lead to some additional attention, as it brings together stakeholders such as mining companies, refiners, traders, analysts, and service providers to discuss industry developments and future strategies.
Wall Street Journal
02-05-2025
- Business
- Wall Street Journal
Gold Consolidates; Fundamentals Solid Despite Recent Selloff
2346 GMT — Gold consolidates in the early Asian session. Despite the recent selloff, gold's fundamentals remain solid, TD Securities' Bart Melek says in a research report. 'It's likely too late to make tariff deals which would prevent an economic slowdown and higher inflation, implying the Fed may well cut rates in a de-facto stagflationary environment,' the head of Commodity Strategy says. 'At the same time, many relationships between the U.S. and key trading and strategic partners have been broken, suggesting a slow pivot away from USD and Treasurys will continue to happen, he says.' This implies market participants should again tilt toward the precious metal, Melek adds. Spot gold is 0.1% lower at $3,238.05/oz. (
