Monthly Archives: August 2017

  • While Precious Consolidates, Base Metals See Gains

    Precious metals are posting some consolidations after Monday's fairly strong trading session. Spot gold is currently at $1,310.80 per ounce - very little changed from yesterday.

    Meanwhile, the PGMs are up between 0.1 percent and 0.2 percent. Yesterday saw the prices on bullion for gold and silver both dropping a hefty 0.6 percent. However, the PGMs yesterday both jumped 0.4 percent into the black.

    In international markets, the U.S. ten-year treasuries are somewhat weaker at 2.15 percent, and the German ten-year bund is also, at 0.36 percent, signalling a strong demand for haven goods. The dollar is posting at 92.48, showing strength after yesterdays abysmal 91.62 drop. Spot Brent crude oil lost 0.1 percent today to $51.88 per barrel.

  • Precious, Base Metals Up Ahead of Jackson Hole

    Both the precious and base metal markets are up today, with gold rising by 0.1 percent to $1,286.60 per ounce. Generally strong trading seems to be the result of heightened anticipation for the upcoming Jackson Hole Symposium and speeches by U.S. Federal Reserve chair Janet Yellen.

    Silver is up the most today in precious metals, rising by 0.4 percent to $16.98 per ounce. The platinum group metals (PGMs) are both up by 0.3 percent. Base metals gained an average of 0.4 percent today, with copper, aluminum, and zinc up anywhere between 0.6 percent to 0.8 percent. Tin is essentially unchanged, though nickel lost 0.5 percent today.

    International markets are looking hot, with spot Brent crude oil up 0.8 percent to $52.53 per barrel. Concerns over hurricane Harvey have been the reason for the sudden gains. The yield on U.S. ten-year treasuries is looking better at 2.19 percent. The U.S. dollar index is consolidating at 93.41.

  • Gold Jumps Past $1,300 per Ounce

    Gold extended gains from the previous session and jumped to its highest in over a week, back closer to the very important $1300 psychological mark.

    On Friday, the US Fed Chair Janet Yellen skipped any mention on monetary policy during a much awaited speech at the Jackson Hole Symposium and did little to revive hopes for additional Fed rate-hike action by the end of this year, eventually helped the non-yielding precious metal to recover sharply from 7-day lows.

    Adding to this, concerns over the impact of Hurricane Harvey on the US growth outlook was also seen weighing on the US Dollar through early European session on Monday and further benefitted dollar-denominated commodities, lifting the yellow metal to its highest level since August 18.

    On the positioning front, the latest weekly Commitments of Traders report released on Friday, by the Commodity Futures Trading Commission (CFTC), showed that the net bullish bets on Comex gold rose for the sixth straight week to August 22 to the highest level in nine-months.

    Investors now turn their focus to the keenly watched US monthly jobs report, popularly known as NFP, along with the US GDP revision, which might influence Fed rate hike expectations and provide some fresh impetus.

    Momentum beyond the $1300 handle could get extended towards $1306-07 area, above which the metal seems all set to aim towards retesting Nov. 2016 swing highs resistance near $1237 level.

    On the flip side, $1293-92 zone now seems to protect immediate downside, which if broken might trigger some profit-taking and drag the commodity towards $1280 important support with some intermediate support near $1288 level.

    Source: FX Street

  • Precious Metals Split, But Gold Holding

    Gold is down ever-so-slightly today, currently at $1,289.02 per ounce, a loss of just 0.1 percent. Silver is also down today, losing 0.2 percent to $17.04 per ounce. However, the platinum group metals (PGMs) are up approximately 0.2 percent. This follows yesterday, which was a stronger day overall, with average gains of 0.5 percent for the complex.

    Base metals are looking good today, with three-month copper lead, tin, and zinc all up anywhere from 0.2 percent to 0.5 percent. Copper is currently at $6,612 per ton. However, both nickel and aluminum lost some ground today, down 0.6 percent and 0.3 percent respectively. Yesterday also had the base metals group split somewhat evenly.

    Prices on spot Brent crude oil are up 0.1 percent today, to $52.54 per barrel. Current yield for the U.S. ten-year treasuries is down to 2.17 percent. The dollar index is also down today, slipping to 93.25, pushed lower once again by policy decision from Donald Trump. The euro consolidated somewhat today to 1.1798.

  • Gold Down Slightly On Yesterday's Gains

    While gold had a strong day in trading yesterday, thanks in large part to heightened geopolitical concerns, today saw the precious metal slipping somewhat, down 0.2 percent to $1,287.90 per ounce.

    In other metals, precious metals are looking bullish today, with platinum gaining and palladium holding strong. However, base metals are showing some minor consolidation today, with only copper doing well. While the rest of the base metal complex is down 0.4 percent, three-month copper prices are up 0.1 percent to $6,583 per ton.

    The Dow Jones industrial average closed with a 0.13 percent gain, up to 21,703.35. The Euro Stoxx 50 is up 0.65 percent, to 3,423.53. The dollar index, however, is weaker today, down to 93.26, with other major currencies also consolidating.

  • Precious Metal Trading Slow on New Week

    This Monday, August 21st, precious metals are off to a slow start. While silver lost 0.1 percent today, platinum, palladium, and gold are all up, but only by 0.1 percent each.

    Today is certainly an improvement for gold and silver, which each lost 0.4 percent on Friday. However, Friday did see gains for palladium and platinum, up 0.3 percent and 0.2 percent, respectively. However, palladium did hold onto an overall gain of 3.5 percent last week, seeming to thumb its nose at the general risk-off environment.

    The dollar index is up 0.03 percent today, to 93.46 after Friday's losses of 0.2 percent. The Euro Stoxx 50 is down 0.46 percent today, to 3,446. The Dow Jones industrial average lost 0.35 percent today, down to 21,675.

  • Precious Metals Make Minor Gains on Weaker Dollar

    Precious metals are making a slight comeback today as the U.S. Federal Reserve has begun backpedaling on more aggressive plans to tighten monetary policy and the U.S. dollar slips slightly. Precious metals are currently 0.3 percent stronger, with palladium recently hitting a 17-year high, surpassing $920 per ounce.

    Base metals are generally positive, with lead, aluminum, and zinc setting new highs for 2017 since last session, gaining even more ground on Wednesday's positive session. Lead and zinc have both jumped up over 5.5 percent each with plenty of volumes of trade. Base metals are up 0.8 percent following yesterdays momentous 3.4 percent gains.

    Oil prices are not posting a lot of action today, holding steady ahead of $50 per barrel in increased output. The dollar index returned 0.4 percent following today's FOMC meeting minutes and site at 93.44 at the moment. FOMC meeting minutes reflects a division in the direction policy setters wish to move in, with more members favoring a standstill on interest rates given a lack of overall inflation indications.

  • Precious Metals Rising, Along With Base Metals

    This Wednesday, August 16th, the precious metals complex is up on average by a net of 0.2 percent. Steadying itself over $1,270 per ounce is gold, which is defying strong U.S. retail sales numbers and recent consolidation.

    Investors feel that the precious metals complex has found overall support at its current level. While platinum and silver have recently found gains in shorts, market participants aren't acting particularly bullish, and seem to be holding out in case more speculators take on a decidedly more bearish tone.

    The U.S. dollar is posting at 93.83. Prices on Nymex crude oil is up 0.5 percent ahead of expected data which is slated to show lower U.S. inventories overall. The CSI 300 is down 0.2 percent, and the Nikkei is down 0.1 percent. However, the Hang Seng gained 0.6 percent in today's trading session.

  • Surge in Risk Assets Puts Pressure on Precious Metals

    Only palladium is posting gains today, rising 0.3 percent, in a session defined by general losses for risk-averse markets such as precious metals. Silver is down a whopping 0.8 percent in today's trading.

    Base metals are up somewhat today, thanks to a lessening of overall geopolitical tension. Lead is up the most, rising 1.2 percent. Copper and tin are also up, though by the smallest margin, at only 0.2 percent each. Volume has been fairly standard with 6,017 lots traded.

    The U.S. dollar index is up 0.14 percent today - up to 93.54. This marks the currency's second consecutive day of gains, after posting a record increase of 0.37 percent just yesterday. In equities, the CSI 300 is up 0.28 percent while the Nikkei 225 rose a sharp 1.35 percent today.

  • Will Gold Jump to $1,400 by 2017-End?

    Gold prices are set to jump to a four-year high of $1,400 an ounce by the end of the year over mounting tensions between North Korea and the US, and surging demand in the world’s biggest consumers, according to the head of precious metals at a Russian investment bank.

    Bullion could rise to $1,360 within three months before climbing higher, fueled by global political risks and buying from China and India, said Evgeny Ananiev at VTB Capital JSC, the investment-banking unit of Russia’s second-largest lender VTB Group. “We may see some correction, but I don’t think gold will drop below $1,200 as it’s well supported,” he said in a weekend interview in Goa. The metal traded at $1,281.86 on Monday.

    Prices have climbed 12 per cent this year, driven by worries over a potential nuclear conflict between the US and North Korea, and subdued inflation in the US, which is cooling chances of a further increase in interest rates. President Donald Trump has intensified warnings to North Korea, promising a massive response to any strike against the US or its allies. Hedge fund billionaire Ray Dalio recommends investors place 5 to 10 percent of their assets in gold.

    The upbeat sentiment was shared by other participants at the conference. “Fundamentally, we have been very bullish on the market,” said Chirag Sheth, an analyst at Metals Focus Ltd., an independent precious-metals research firm based in London. “What North Korea has done is given gold the legs to go above the $1,300 level and sustain above that level,” he said in an interview.

    Sheth expects prices to advance to $1,400 in six to nine months as the situation in North Korea sees investors coming back to the market in search of a haven. The US Federal Reserve, which was hawkish on interest rates, has now softened its stance, providing further support to bullion, he said.

    As Trump and Kim Jong Un traded barbs, Dalio wrote in a LinkedIn post last week that “the world is watching to see which one will be caught bluffing, or if there will be a hellacious war.” Dalio, who manages Bridgewater Associates, also said he sees rising odds of Congress failing to increase the US debt ceiling, leading to a technical default.

    The US consumer-price index rose 1.7 per cent in July from a year earlier, a report showed Friday, trailing the 1.8 per cent median estimate of economists surveyed by Bloomberg. Cooling price pressures could make it tougher for the US central bank to raise interest rates again this year.

    Indian demand has also recovered after a poor performance in 2016 and jewellery consumption may climb by about 6 per cent this year, said Sheth, who provides supply and demand data to the World Gold Council. Imports may jump about 30 per cent to as high as 800 metric tons in 2017, he said.

    Demand for gold bars in China, the world’s biggest bullion market, soared by more than half in the first six months of the year, while overall gold consumption climbed almost 10 per cent to 545.2 tons, according to the China Gold Association.

    Source: The Economic Times