FS: US GOLD OPEN – Comex supported by Ukraine jitters
Orlando, Florida 28/04/2014 – Gold inched modestly higher Monday on Ukraine escalation fears and a weaker dollar; however, many investors might hold off on big buys until after the US Federal Reserve releases its monthly policy statement on Wednesday.
Gold for June delivery on the Comex division of the New York Mercantile Exchange was last up $1.20 at $1,302.00 an ounce. Trade has ranged from $1,299.40 to $1,306.60.
“The ongoing geopolitical tensions in Ukraine are still lending support to the price. In addition, speculative financial investors now rate gold’s prospects better again,†said Commerzbank, noting that last week the Comex long position grew for the first time in five weeks, according to CFTC data.
“Nonetheless, we anticipate a subdued start to the week on the gold market because more important data publications are only likely to give impetus to the price – one way or another – in the second half of the week,†the broker added.
Latter this week will be the US Federal Open Market Committee meeting – where further QE lightening is anticipated – and Friday’s non-farm payrolls report for April.
“The FOMC meets tomorrow and Wednesday and we suspect/hope that the post-meeting communiqueÌ will be a nearly perfect replaying of the post-meeting communiqueÌ from several weeks ago,†Dennis Gartman, editor of the Gartman Letter, said.
“We see nothing in the data on the US economy made public over the course of the past month and one half that should allow for the Fed to slow or to speed up its path toward ‘zero’ accommodation by the year’s end and we look for the vote to be nearly unanimous toward that end, although it is clear that buried within the Committee are deep-seated disagreements on the policy,†Gartman added.
In news today, President Barack Obama announced new sanctions against the Russians, including expanding the list of people whose assets will be frozen and who will be denied travel visas to both the US and the EU.
“Although on the surface the steps announced thus far by the US and the EU may not appear to be that meaningful, the threat of more to come is already having a considerable impact on the Russians,†said INTL FCStone’s Ed Meir, who added that about $70 billion of capital has already left the country, equivalent to what went out during all of last year.
In the wider-markets, the euro was 0.14 percent stronger at 1.3865 an ounce, while Germany’s DAX and France’s CAC-40 were up 0.40 percent and 0.30 percent respectively. In Asia, the Nikkei and Hang Seng finished down 0.98 percent and 0.41 percent respectively.
As for the other precious metals, Comex silver for May delivery was up 1.4 cents at $19.705 an ounce. Trade has ranged from $19.510 to $19.755.
Platinum futures for July delivery on the Nymex was up $5.40 at $1,429.70 an ounce, while the most-actively traded palladium contract was at $811.95 an ounce, up 75 cents.
- See more at: http://www.fastmarkets.com/gold-news/74539-0-en#sthash.YynxvM45.dpuf
