Standard Chartered sees potential upside for gold this week despite weekend news that India’s goods and services tax on gold will be 3%, more than the jewelry industry had hoped for. “The weaker-than-expected U.S. employment report, released [Friday], boosted gold prices, but has not derailed the likelihood of a rate hike at the June FOMC meeting,” Standard Chartered says. However, market conviction for subsequent rate hikes “is likely to waver,” the bank says.
…INTL FCStone sees potential for more gold upside during June, although the firm also cautions about potential volatility with Federal Reserve policymakers scheduled to meet mid-month. “We have been relatively upbeat on gold lately and suspect that it could move slightly higher again in June, although we think that a significant part of its advance has already been put in during May and therefore, there might be only limited upside from here,” INTL FCStone says in its monthly commodities outlook.