Gold likely to trade in a range between $1,240-$1,310 during May

UNITED STATES May 02 2017 11:10 AM
NEW YORK (Scrap Register): INTL FCStone is constructive on gold for May, calling for a range of $1,240 to $1,310 an ounce. 

INTL FCStone expects gold maintaining a relatively higher trading range in May as tensions with North Korea -- yet another missile was fired this weekend -- will command more attention now that the bearish impact of the French election is out of the way.

Other supportive factors include an expected weaker dollar, dovish stances taken by the ECB and the BOJ (European Central Bank and Bank of Japan) at their recent meetings and the fact that physical and ETF (exchange-traded-fund) demand seems to be picking up.

“Silver is expected to be in a steady trading range following gold, but we see platinum as remaining weak on account of rising supply,” the firm added.

Meanwhile, the palladium charts look very constructive and prices are in breakout mode, INTL FCStone added. 

Still, analysts noted, “While we still could move somewhat higher on palladium, prices are approaching historically overbought levels.”

The firm sees silver in a May range of $16.60 to $18.25, platinum trading between $910 and $990, and palladium between $760 and $870.