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Gold and palladium both have a historical week

Gold and palladium both have a historical week

This was truly an historical week for traders of the precious metals. Both gold and palladium made substantial and strong upside moves resulting in a all-time new record high for palladium, and gold reaching a seven-year high.

There are distinct differences in the rationale and reasons that these two metals had such strong gains. In the case of palladium, it is a simple issue which revolves around a growing demand, and a diminishing supply. A report published by Johnson Matthey, one of the largest refineries of precious metals worldwide stated that the deficit between production and demand for palladium will continue to grow, and widen in 2020. It is for that reason that we have seen palladium prices rise in a parabolic manner since July 2018. In fact, the low achieved on a monthly chart during July 2018 was just above $800 per troy ounce.

Currently palladium closed today at $2,614, after factoring in today’s gain of 1.56% or $40.10. On a monthly chart it has hit an all-time record high of $2,746, just $132 above today’s closing price. Based upon the information contained in the report by Johnson Matthey we could see palladium continue to rise in price.

The rationale is that both Europe and China have begun to implement higher standards in terms of emissions released from cars and trucks containing internal combustion engines. Palladium continues to be the most effective way to reduce hydrocarbons and nitrogen oxides which are byproducts of burning fossil fuels.

Palladium is one of the few precious metals that has a price dictated almost completely by supply versus demand. According to the Visual Capitalist, “The current price of palladium is driven by fundamental supply and demand issues, not investor speculation. Between 2012 and 2018, an accumulated deficit of five million ounces has placed pressures on readily available supplies of above-ground palladium.”

Gold also had a historical breakthrough when early this week it broke and closed well above the elusive and psychological level of $1600 per ounce. The reason behind this move is completely different than palladium’s reason.

With the coronavirus continuing to spread not only throughout China, but now slowly to other parts of the world. There is a genuine concern that this will lead to a global issue. Currently there is no vaccine or cure for this epidemic and although it has been primarily been affecting China, this week many other countries reported new cases of the disease.

Today the New York Times reported that the coronavirus outbreak deepened its toll on global business. It cited the fact that “The disruption of China’s manufacturing network, and slowdown of its economy, has rippled through to the airlines, automakers, tech companies and more.

Until this epidemic can be contained from spreading it will continue to have the potential to disrupt economies around the world. More than 76,000 cases have been reported worldwide, and although the vast majority are from China.

Wishing you as always, good trading,


By Gary Wagner

Contributing to

Wheaton Precious Metals NYSE: WPM exceeded its year end guidance in its production report released tonight

Wheaton Precious Metals (NYSE: WPM) exceeded its year end guidance in its production report released tonight.

In 2019 gold equivalent ounces came in at 706,900, up from 690,000 forecast for the year.

The gold equivalent ounces was made up of gold at 406,604 oz, silver at 22,544 ounces and palladium at 21,993 ounces.

The 2020 forecast is for 685,000 to 725,000 gold equivalent ounces.

"In 2020, gold production is forecast to remain strong primarily driven by Salobo and San Dimas. Silver production in 2020 should be stable as growth from Peñasquito is expected to be partially offset by slight decreases at Antamina and Constancia due to mine planning. Palladium production is expected to increase in 2020 as the Blitz project at the Stillwater mine continues to ramp up," writes the company.

Looking five years ahead Wheaton Precious Metals expects production growth from Peñasquito, Constancia and Stillwater as well as the commencement of the Voisey's Bay stream in 2021. Wheaton will be entitled to receive from Vale an amount of cobalt equal to 42.4% of the Voisey's Bay mine cobalt production.


By Michael McCrae
For Kitco News

Gold prices today hit record highs for third day in a row silver rates jump

Gold prices today hit record highs for third day in a row, silver rates jump

The investment demand for gold continues to grow

Silver rates also moved higher today

Gold prices in India rose to a new high today, extending their record-setting run to the third day in a row. On MCX, April gold futures rose as much as 0.5% to ₹41,798 per 10 gram, before giving up some gains. Domestic gold prices tracked gains in global rates which are hovering around seven-year highs. Silver rates also tracked higher today with March futures on MCX rising 0.54% to ₹47,825 per kg.

Gold can move towards ₹41,900 while taking support near ₹41,600 while silver can head towards ₹48,300 while taking support near ₹47,500, SMC Global said in a note.

In global markets, gold prices were near a seven-year high as investors weigh the impact of coronavirus on global growth. Gold is up about 6% this year in global markets amid mounting concern over the effects of the virus. Spot gold was steady at $1,610.43 an ounce.

Meanwhile, China today announced that it would cut interest rates in a bid to boost the economy which has been battered by the economic fallout of the coronavirus outbreak. There are expectations that the China could announce more measures to support the economy. China's central bank had earlier said that it would offer a $43 billion boost to help businesses involved in fighting the epidemic.

Some analysts say that gold prices could top $1,650 over the coming weeks.

China's central Hubei province, the epicentre of coronavirus outbreak, on Wednesday reported 349 new confirmed cases, down from 1,693 a day earlier and the lowest since January 25, although it was accompanied by a change in methodology.

The investment demand for gold continues to grow. Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.2% to 931.60 tonnes on Wednesday.

US central bank policymakers remain cautiously optimistic about their ability to hold interest rates steady this year, even as they acknowledged new risks caused by the coronavirus outbreak, according to the minutes of US Federal Reserve's last policy meeting released yesterday. Lower interest rates boost the appeal of non-yielding asset classes like gold. (With Agency Inputs)


Edited By Surajit Dasgupta
Updated: 20 Feb 2020, 10:37 AM IST

Gold price pushes above 1600 what’s next?

Gold price pushes above $1,600, what's next?

For a lot of analysts it was only a matter of time before gold prices breached $1,600 an ounce and with that target achieved, those professionals say that the precious metal has room to run a little further.

Gold price have been climbing steadily higher Tuesday as fear sentiment picked up after investors saw the impact the spreading coronavirus was having on the global economy. Overnight, Apple warned that earnings won ’t meet guidance for the first quarter. The tech company said that production and sales have dropped because of the coronavirus.

“The gold market has just been waiting for a big name to crack to push price higher,” said Phillip Streible, chief market strategist at Blue Line Futures.

Streible added that if feels like sentiment in equity markets is starting to shift and that will continue to support gold prices. The comments come as April gold futures rally more than 1% on the day, last trading at $1,604.30 an ounce.

Streible noted that valuations in equity markets have been unaligned with reality for a long time and a potential correction could be significant.

As for how high gold prices can go, Streible said that he is looking at initial resistance at $1,620 with his next target at $1,650.

In the near-term, ’s senior technical analyst Jim Wyckoff said that he is watching initial resistance at $1,619.60 an ounce, which was the seven-year high hit in January. “If that is breached on the upside it would open up another solid leg up in prices,” he said.

Bart Melek, head of commodity strategy at TD Securities, said that he is also bullish on gold, reiterating the firm’s target at $1,700 an ounce.

However, in the near-term Melek said that he is watching resistance at $1,614 an ounce and at $1,632.

“The Apple news is not going to be the only bad report out there. We are going to get more weak data and that will force markets to price in more rate cuts from central banks,” said Bart.

“We are going to see more equity volatility and more uncertainty,” he said. “I suspect that that if needed central banks and even governments will be ready to pump liquidity into markets to support economic growth and that is going to be good for gold.”

Even after Apple’s announcement, many economists have noted that the full impact of the coronavirus is still unknown. Currently, more than 73,000 people around the world have been infected and more than 1,800 have died.

Colin Cieszynski, chief market strategist at SIA Wealth Management, said that with gold’s new breakout, the yellow metal can push to between $1,670 and $1,680.


He added that he is watching to see how the coronavirus impacts the global economy and how central banks react to any potential weakness.

“Gold and the coronavirus is not about money flows. It more than just the daily shifts between fear and greed,” he said. “The fact is that because of the impact the virus is expected to have on economic growth, it will be difficult for any central bank tighten monetary policy.”


By Neils Christensen
For Kitco News


Gold has room to push to 1600 in the short term UBS

Gold has room to push to $1,600 in the short term UBS

A correction in equity markets due to shifting economic growth expectations could be the catalyst to push gold out of its narrow range, according to one market strategist.

In a recent report, Joni Teves, precious metals strategist at UBS, said that although gold is currently stuck in no man's land, there is potential for prices to push to $1,600 an ounce. The question is, for how long can prices hold that level?

For the short-term, Teves noted that investors shouldn't ignore gold's recent resilient strength.

"It is not so much a question of who is buying gold, but also who is selling it," she said in the report. "While many are not yet keen to chase it here, there is also no appetite to sell short or even let go of strategic positions that have been built. Sentiment is friendly and there is an underlying bias to be long."

Teves noted that gold continues to be a hedge against economic uncertainty is it remains highly negatively correlated to equity markets and base metals.

"This implies that gold prices have room to strengthen through $1,600 if economic data deteriorates significantly ahead," she said.

Currently, the biggest threat to the global economy remains the spreading novel coronavirus. The virus has infected 71,000 people globally, with most of the cases still in China. More than 1,700 people have died from the virus.

The full impact the virus will have on global growth is still unknown, but Teves said that UBS economists expect that any global economic weakness will be confined to the first quarter. She added that soft econ

Neils Christensen 
Monday February 17, 2020 14:51

Gold poised for a weekly gain as virus fears lift safe-haven demand

Gold poised for a weekly gain as virus fears lift safe-haven demand

* Gold on track for a weekly rise

* U.S. consumer spending slows

* China reports 121 new deaths and 5,000 new coronavirus cases

* Palladium up over 4% for the week so far

Gold prices rose to the highest level in more than a week on Friday, on track for a weekly gain, as investors bet on the safe-haven metal to hedge against the economic impact of the coronavirus outbreak.

Spot gold rose 0.5% to $1,583.18 per ounce by 1:43 p.m. EST (1843 GMT), after touching $1,583.76, its highest price since Feb. 3. For the week, bullion has so far gained about 0.8%.

U.S. gold futures settled up 0.5% at $1,586.40.

“The coronavirus scenario is still unclear and the on-off headlines on the situation are making the stock markets volatile, forcing investors to take refuge in safe-haven gold,” said George Gero, managing director at RBC Wealth Management.

“Even with the virus gone, gold is expected to trade in the $1,550-$1,600 range as other uncertainties like lower interest rates across the major central banks, Middle East tensions and other political risks still exist.”

Chinese authorities on Thursday reported 121 new deaths and 5,000 new coronavirus cases in mainland China, and economists scaled back growth expectations for the world’s second-largest economy as they assessed the impact of the outbreak.

Global stock markets have had a volatile week as investors took and quit positions in riskier assets driven by the frequently changing headlines around China’s coronavirus outbreak.

Wall Street opened slightly higher, with gains kept in check by concerns about the economic hit from the outbreak.

Further supporting gold’s rise, U.S. Treasury yields declined after soft retail sales data amid virus concerns.

U.S. consumer spending appears to have slowed further in January, which raises concerns about the economy’s ability to continue expanding at a moderate pace.

“We still target a decline in U.S. Treasury yields, in addition to dollar weakness from a trade-weighted angle. We believe this gives gold a good risk-reward even if we see no further bouts in equity market uncertainty,” UBS analysts said in a note.

Among other precious metals, palladium fell 0.3% to $2,417.20 an ounce, but was on track to register its best week since the week ended Jan. 17, with a gain of more than 4%.

Silver rose 0.7% to $17.75 , while platinum fell 0.3% to $964.53


Reporting by Diptendu Lahiri in Bengaluru Editing by Richard Chang and Matthew Lewis

Temporary suspension of trading KVTs on the Kinesis Exchange

Temporary suspension of trading KVTs on the Kinesis Exchange

At Kinesis, we strive to deliver value to our clients, and Kinesis Velocity Token (KVT) holders. The value of KVTs, as outlined in our blueprint, is derived from a fully operational product suite, designed to deliver yields based on transaction fees and velocity.

Velocity is key to the success of the Kinesis Monetary System, and we have taken the position to preserve the value of the KVT until we deliver our current product road-map, which will also be made public shortly. This includes the Kinesis debit card, additional currency pairs (including BTC pairs), mobile applications and merchant integrations, which are envisaged to be primary drivers of velocity.

Therefore, trading of the KVT on the Kinesis Exchange, has now been suspended, effective immediately, until these integral pieces of the Kinesis Monetary System have been released. Please note all open KVT orders will now be cancelled.

This is a temporary suspension of KVT trading on the exchange and we will re-list them once we have met the objectives above.

Deposit and withdrawal functionality for KVT in your KMS account will remain active, meaning you can still access your KVT holdings and store them in your KMS account if you wish.

This temporary suspension has been put in place to protect KVT holders and the value of the tokens. This is a commercial decision which has been made in an evolving landscape, to protect all participants, and to align our products for delivery of the Kinesis Monetary System.

We thank you for your ongoing support of the Kinesis Monetary System.

For regular progress updates tune in to our Live from the vault episodes, filmed every two weeks. These are designed to keep our community abreast of all initiatives, developments and product releases.

Bitcoin versus gold you need THIS during outbreaks like coronavirus – analyst

Bitcoin versus gold, you need THIS during outbreaks like coronavirus – analyst

Bitcoin has risen 48% since the start of 2020, far outperforming gold, and this may be due in part to the coronavirus, said Clem Chambers of, who considers the largest cryptocurrency to be the “flight asset of choice”.

“Bitcoin is now proven to be of use, because you can buy it and turn it into fiat very, very quickly and very, very easily international. So, if you had to make plans quickly, as a lot of people in Asia I’m sure are worried about being kettled in their cities, not just in China, you’d want to have the ability to take $100,000, $200,000, a million five million dollars worth of assets abroad with you,” Chambers told Kitco News



Gold silver prices gain as coronavirus outbreak escalates

Gold, silver prices gain as coronavirus outbreak escalates

Gold and silver prices are moderately higher in midday U.S. futures trading Thursday. Some risk aversion is back in the marketplace late this week, as the coronavirus outbreak has escalated in China. February gold futures were last up $7.00 an ounce at 1,578.60. March Comex silver prices were last up $0.118 at $17.61 an ounce.

New cases of coronavirus increased markedly Thursday in China's Hubei province. There were over 14,800 new cases were reported Thursday in contrast to around 2,000 new cases reported Wednesday. Reports said there were around 240 new deaths in the region. Chinese health officials also widened their definition used to confirm cases. More than 1,300 people have died from the epidemic and the total number of afflicted in the Hubei province stands at over 48,200. The World Health Organization warned the recent reports about the slowdown in the spread of the virus should be treated with “extreme caution.” “This outbreak could still go in any direction,” the WHO said, regarding the status of the outbreak.

China’s businesses are being seriously impacted. There are reports of impending steel shortages and other supply chain disruptions. Auto sales in China are reported down around 20%. Global crude oil demand in the first quarter of this year is forecast to hit the slowest rate of growth in 10 years amid the coronavirus outbreak, according to the International Energy Agency. The IEA said “there is already a major slowdown in oil consumption and the wider economy in China.”

The ebb and flow of this matter as it relates to the marketplace continues—shifting between the front burner and the back burner of the marketplace on any given trading day.

The key outside markets today see crude oil prices firmer and trading around $51.50 a barrel. Meantime, the U.S. dollar index is slightly up in early U.S. trading and not far below this week’s multi-month high.

Technically, April gold futures bulls have the comfortable overall near-term technical advantage. However, they need to show more power to restart a three-month-old price uptrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the February high of $1,598.50. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,542.80. First resistance is seen at today’s high of $1,581.70 and then at $1,590.00. First support is seen at today’s low of $1,568.50 and then at this week’s low of $1,564.40. Wyckoff's Market Rating: 6.5

March silver futures bears have the overall near-term technical advantage. A four-week-old price downtrend is in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at this week’s high of $17.825 and then at $18.00. Next support is seen at this week’s low of $17.435 and then at the January low of $17.28. Wyckoff's Market Rating: 4.0.

March N.Y. copper closed up 150 points at 261.45 cents today. Prices closed nearer the session high and hit a three-week high today. The copper bears still have the overall near-term technical advantage. However, recent upside price action now suggests a market bottom is in place. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 270.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the February low of 248.75 cents. First resistance is seen at today’s high of 262.75 cents and then at 265.00 cents. First support is seen at today’s low of 258.15 cents and then at 255.55 cents. Wyckoff's Market Rating: 3.0.


By Jim Wyckoff

For Kitco News

There is no fear in the markets but there should be here’s why

There is no fear in the markets, but there should be, here’s why

-The market is already veering towards a recession, but stock markets are not responding accordingly, this according to Todd “Bubba” Horwitz of

“I think, we’re in the early stages of a recession,” Horwitz told Kitco News. “cheap money continues to fuel the markets.”

Gold and silver will both eventually move much higher, but in the short-term, metals will follow their trajectory, meaning gold will move higher and silver will lag, Horwitz said.

“Right now, silver is in a short-term downtrend…both gold and silver spiked to highs and since then, they’ve both come down. The difference is gold found some support around $1,560 April futures but is holding, and silver is continuing that downward trajectory,” he said.

Horwitz added that once the gold-silver widens, it would present a good opportunity for traders to buy silver.

“I think gold, I’m looking for $1,600 first, but I’m pretty confident that the $1,630 high that was made on that spike high will be taken out and then that will probably be a near-term top here,” he said.


By Kitco News
Wednesday February 12, 2020 19:34