Research

Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.

Daily Resources Overview

 

Goldand silver prices are trading not too far from unchangedlevels on the day, in early-afternoon U.S. trading Monday. A lack of freshfundamental inputs to start the trading week is keeping trading in many marketsmore subdued. April gold futures were last down $0.70 an ounce at $1,302.20.May Comex silver was last up $0.011 at $15.335 an ounce.

Traderand investor focus is turning to this week’s FOMC meeting of the FederalReserve, which begins Tuesday morning and ends Wednesday afternoon with astatement. The FOMC is not expected to change its monetary policy at thismeeting. The Fed has become more dovish the past few months.

TheBrexit matter continues to play out but it’s on the back burner of the worldmarketplace. The U.K. has no “soft Brexit” deal in place ahead of the March 29“hard exit” (no deal) for the U.K. to leave the European Union. Look for PrimeMinister Theresa May to soon propose another plan for a soft Brexit to theParliament.

Muchis being said about the World Gold Council’s report that central banks arebacking up the truck for gold. The net increase in 2018 was 651.5 metrictonnes, up from 375 tonnes in 2017. Byvolume this is the largest net purchase since 1967. This does notmean there’s a global stampede into gold, of course. Most the purchasing wasconcentrated among a few banks—the usual suspects. Russia bought the most,apparently all but liquidating its US treasury holdings in the process. Thatmakes perfect sense, given the sanctions Russia faces.

Theadventure du jour generating buzz is the March 29, 2019 start date for the Bankfor International Settlements’ “Basel 3” rules. Under these rules, central banks cancount their gold holdings, marked to market, as equivalent to cash.


 
19/03/2019 9:00:00 AM

Back to top