Monthly Archives: November 2017

  • Gold Down on Republican Tax Bill

    Gold has returned its highs today as U.S. Republicans passed sweeping tax reform in the House. While the precious metal closed at $1,278.40 per ounce, market participants are uncertain of the security of the metal with political strife in Washington.

    President of Blue Line Futures, Bill Baruch, believes that a house bill that benefits Republicans will likely continue to boost safe haven markets as the U.S. dollar continues its downwards trajectory. He says we should expect a bullish trend come early 2018.

    "I don't think anyone believes that Congress won't pass something by the end of the year," Baruch states. "But when the dust settles, I think markets will be disappointed with the legislation and that will weigh on the U.S. dollar."

  • Gold Returns Gains On Stronger Dollar

    This Wednesday, November 15th trading session saw the U.S. dollar boosted on recent data, pushing precious metals down. Gold is currently at a $5.20 loss (0.4 percent) to $1,277.70 per ounce.

    Data released today shows that the U.S. has seen an overall increase in retail sales and underlying inflation. Investors and market analysts are now anticipating a December U.S. interest rate increase as a very real possibility, boosting the U.S. dollar on its index after recent losses.

    As for other precious metals, palladium lost 0.4 percent to $981.75 an ounce. Silver is also down, returning 0.4 percent as well, down to $16.95/ounce. Only platinum posted gains today, rising by 0.2 percent to $927.74 per ounce.

  • Gold Boosts on Falling Dollar

    Today's fall for the U.S. dollar has been instrumental in boosting the price of spot gold. The precious metal is currently trading at $1,281.80 - up $2.80 per ounce.

    The U.S. dollar lost nearly 7/10 of a percent today. This has led the currency to fall on its index by 64 points to 93.745. The loss in this currency is boosting the gold index by about $9.10 per ounce.

    As for the U.S. Federal Reserve rate hike for December, market speculators are now considering that the possibility of a rate hike is up again despite recent disappointing U.S. economic data.

  • Q3 Gold Demand Disappoints

    According to data from the World Gold Council's most recently released Gold Demand Trends, while physical buying is up for investment coins and bars, overall demand for gold globally is down in quarter 3 of 2017.

    Thanks in large part to a significant drop in jewelry volume from India, demand for gold is down 9 percent from Q3 2016, with just 915 tons moved. Also hurting the figures was an overall stall in the inflow of the precious metal for ETFs (exchange-traded funds).

    However, on a positive note, gold coins and bars are up in demand by 17 percent from 2016. Further, demand from China in the retail investment market is up for the 4th quarter in a row. Similarly, the Russian and Turkish central banks are also investing into their reserves.

  • Gold Strong Despite 7-Year Demand Lows

    Gold is maintaining its 3-week highs today - up 1.4 percent from last Friday - and is holding strong despite new data out that shows demand for the precious metal is at its lowest point since early 2010.

    In other precious metals, platinum is up to $940 per ounce, also at 3-week highs. Silver is holding 0.8 percent under its 3-week high on Monday of $17.25 an ounce. Despite an 11 percent loss in trade for gold, general concerns over geopolitical tensions in North Korea and the Middle East are supporting precious metals as a safe haven commodity.

    Market participants anticipate that next year may be tighter in gold trade as well, as Sudi Arabia and the UAE will be implementing n additional 5 percent tax. Further, with the UK exiting the European Union in 2019, traders are looking to see what settlement is reached in terms of trade rules between the two economic powers moving forward.

  • Gold, Crude Oil Find Gains Amidst Saudi Attacks

    Spot gold is up in all markets today as a result of greater conflicts in the Middle East. Gold is currently at $1,272 per ounce. Crude oil is also up, rising to its highest level since mid-2015 at $62 per barrel.

    Boosting these markets is the recent political upheavals and acts of violence out of the Middle East today. Just this morning, a missile was fired from Yemen, aimed for the Saudi capital of Riyadh. Saudi Arabia has since launched its own attack on the anti-government Houthi rebels in Yemen.

    In markets, the S&P 500, Nasdaq, and Dow Jones industrial average are trading still near all-time highs reached last Friday on their indices. The European and Asian stock markets are also seeing growth. The German economy is also seeing significant strength.

  • Gold Closes at 13-Week Low As Stock Market Slips

    World stock markets are falling somewhat from their recent all-time highs today, pushing gold down to $1269 per ounce - a loss of $5 an ounce.

    Crude oil is up somewhat today. Base metals returned much of their recent 25 percent gains from the last two trading quarters. The U.S. bond prices are up, as are other major government bonds, lowering overall yields.

    October's U.S. jobs report was a disappointment for many, with overall weaker growth than expected. However, civilian unemployment is down to 4.1 percent - the lowest in 17 years. The dollar is stronger as a result.

  • Ahead of Fed Decision, Dollar Continues to Climb

    Despite rising geopolitical tensions, gold has returned its recent 0.9 percent gains overnight, losing ground to a U.S. dollar that continues to gain ground. The precious metals is currently at $1,273 per ounce.

    In U.S. markets, Wall Street continues to climb towards new all-time records. October's jobs growths are looking much stronger than what analysts had originally anticipated. The U.S. Federal Open Market Committee (FOMC) is expected to be making another policy decision soon, though market participants anticipate that interest rates and QE will not be affected.

    Growing tensions in the Catalan & Spain rebellion are offering very little in terms of safe haven spending for precious metals and other markets typically boosted in times of global stress. Carles Puigdemont, ex-governor of Catalan, will not be appearing in Spanish court tomorrow, opting instead to answer questions from the country he fled to, Belgium.