INTL FCStone sees gold trade at $1,240-1,320/oz in September amid an uninspiring backdrop

UNITED STATES September 04 2014 5:45 PM

NEW YORK (Scrap Register): Gold prices are likely to tarde within a range of $1,240 to $1,320 an ounce in September amid an uninspiring backdrop, said INTL FCStone in a monthly outlook.

According to INTL FCStone, much of the focus remains on central banks, particularly the Federal Reserve. Even if Chair Janet Yellen reiterates that the Fed remains flexible, strong data in the U.S. is working against her rhetoric.

Meanwhile, investment demand for gold remains soft, with no meaningful inflows see in ETFs (exchange-traded funds).

INTL FCStone cited a Bloomberg report that saying there has been a disconnect between ETFs and gold in that while ETF outflows are continuing, prices are holding up relatively well.

“This may be true, but by the same token, bulls cannot expect prices to move substantially higher if fund money continues to exit these products,” said the firm.

INTL FCStone sees an $18.60-$19.90 range for silver this month. Platinum and palladium should sell off in line with a weaker gold market, but both complexes are benefiting from strong automobile sales and continued concerns about South African supplies, so dips may prove to be a good buying opportunity, particularly in palladium.

INTL FCStone forecasts a range of $1,365 to $1,460 for platinum and $835 to $915 for palladium for September.