Gold awaits release of key US economic data

The spot gold price drifted within a narrow range during Asian trading hours on Thursday December 22 ahead of the release of a string of US economic data later today.

The spot gold price was recently quoted at $1,131.10/1,131.50 per oz, up just $0.30 on the previous close. Trade has ranged from $1,130.70 to $1,132.65 so far.

“The [USA] will release a series of important macroeconomic data which should impact on the market. The spot gold price has no clear direction yet and will await the data for directions,” China’s Zhengjin Precious Metals said on Thursday morning.

US data due later today includes core durable goods orders, final GDP, unemployment claims, core PCE price index, personal spending, CB leading index and personal income.

November core durable goods orders are expected to rise 0.2% month-on-month while final third quarter GDP growth is expected at 3.3%.

Durable goods order is expected to fall 4.9%, core PCE price index is seen rising 0.1% and personal spending is forecast to increase 0.4%, all on a month-on-month basis in November.

Recent strong US macroeconomic data and optimism over president-elect Donald Trump’s potential infrastructure spending plans have raised expectations of more interest rates increases in the USA next year, boosted the US dollar and increased appeal of risk assets like equities, while decreasing the attractiveness of haven assets like gold.

In US data released on Wednesday, existing home sales in November were at 5.61 million, higher than the forecast of 5.52 million. But weekly crude oil inventories in the country rose 2.3 million barrels against expectations of a 2.4 million barrel decline.

In currencies, the US dollar index fell 0.1% to 102.94 so far on Thursday.

In other commodities, the Brent crude oil spot price rose 0.18% to $54.60 per barrel recently.

In equities, the Shanghai Composite eased 0.05% to 3,136.02 so far today.

In the other precious metals, the spot silver price increased $0.015 to $15.940/15.980 per oz. Platinum gained $6.50 to $916/921 per oz, and palladium increased $3 to $657/662 per oz.

On the Shanghai Futures Exchange, gold for June delivery was recently at 264 yuan ($38) per gram, and the June silver was at 4,017 yuan per kg.

(Editing by Kyle Docherty)

The post Gold awaits release of key US economic data appeared first on The Bullion Desk.

from The Bullion Desk http://ift.tt/2hePuX5
via IFTTT

Gold price consolidates above $1,130/oz but headwinds remain

The gold price inched higher on the morning of Wednesday December 21 in London, finding some support from a slight easing in the dollar.

The dollar index was recently at 103.19, down 0.8%, although it remains near recent 14-year highs.

Spot gold was recently indicated at $1,134.15/1,134.24 per oz, up $2.30 on Tuesday’s close. The metal has come under pressure since the US Federal Reserve announced it would raise interest rates this month. Still, analysts said that, even with gold at these lower levels, it has yet to attract any significant bargain hunting.

A stronger dollar, higher bond yields and rises in US interest rates may mean bullion continues to lose its allure in the first months on 2017, Kash Kamal, an analyst at Sucden, said.

“The extent of the yellow metal’s decline is reliant on the route the Fed takes. Chair Janet Yellen in her most recent meeting has indicated the she may increase rates three times next year. We expect bullion will continue its downtrend, however; after this year we remain wary of Fed promises to increase interest rates,” he added.

In data today, EU consumer confidence and US existing home sales are of note.

In the other precious metals, the spot silver price at $16.015/16.035 per oz was unchanged. Spot platinum at $914/919 per oz was also unchanged while spot palladium nudged $1 higher to $661/666 per oz.

(Editing by Mark Shaw)

 

The post Gold price consolidates above $1,130/oz but headwinds remain appeared first on The Bullion Desk.

from The Bullion Desk http://ift.tt/2ifVlrb
via IFTTT

Tom Cloud Precious Metals: Five Important Updates And Developments

from Metals Analysis http://ift.tt/2hH9hOa
via IFTTT

PLATINUM TODAY – Prices remain in the doldrums

Short Term: Medium Term: Long Term: Resistances: R1 926 Oct’16 lows R2 928 20 DMA R3 939 DTL R4 1021 Nov 9 peak R5 1090 May peak R6 1195 High so far R7 1207 H&S target R8 1289 Jan ’15 peak Support: S1 957 61.8% Fibo (2016 rally) S2 954 June low S3 9234 20 DMA S4 911 Feb low/HSL S5 889 Low so far S6 811 Jan low S7 807 Support 2004 S8 745 2008 low Stochastics:Bearish Legend: Fibo = Fibonacci retracement level DMA = Daily moving average BB = Bollinger band (H)SL = (Horizontal) support line UTL = Up trend line H&S = Head-and-shoulder pattern Technical Comment Analysis The pullback in platinum has been relentless, with prices falling back to levels last seen in February. On December 15, prices moved below recent support, setting a low at $889 per oz. Prices have since rebounded. So again prices may have found support but they are not seeing much follow-through buying.  It would take a move above recent rebound tops at $952 per oz and the DTL at $939 per oz to make the market look less vulnerable. The stochastics remain bearish so for now prices remain vulnerable. Macro factors Given stronger industrial metals prices, it is surprising that platinum prices have weakened as much as they have. November EU passenger vehicle registrations rebounded, rising 5.8%, having been flat in October. This has removed one concern – following October’s data, it did look as though the EU auto market may be slowing down. Growth, however, was seen in all major EU markets in November. In the first eleven months of the year, registrations were up 7.1%.  Generally strong auto data seems to have been ignored in the second half of the year, with poor jewellery uptake and the gold price weighing on sentiment.  Another bullish feature is that South Africa’s PGM output fell 12% in the year ending October 2016, according to Statistics South Africa. We still see platinum as underpriced at these levels. Given a depressed jewellery market, it may take a recovery here before sentiment turns brighter. A pick-up in economic activity may well bode well for jewellery demand down the road. China is the biggest consumer of platinum jewellery – a turnaround in China’s economic outlook may feed through to more spending on luxury items (in time). The funds’ net long position had become very extended, peaking at 55,949 contracts on August 9. It had dropped to a low of 20,098 contracts by October 25 but was at 25,616 contracts as of December 12. The net long position at 25,616 contracts is in low ground – this year’s range has been 55,949-20,098 contracts. With the gross long and short positions both being cut, it looks as though interest in the metal is waning. Conclusion We felt platinum prices had become oversold – they remain so. Prices appeared to have formed a base but there is little appetite to buy. All trades or trading strategies mentioned in the report are hypothetical, for illustration only and do not constitute trading recommendations.

The post PLATINUM TODAY – Prices remain in the doldrums appeared first on The Bullion Desk.

from The Bullion Desk http://ift.tt/2hZPJ59
via IFTTT

Gold: Rebounds To Fibonacci Resistance Can Be Sold Short

from Metals Analysis http://ift.tt/2hU8t8M
via IFTTT

Momentum Is Building At Nemaska Lithium's Mine And Plant

from Metals Analysis http://ift.tt/2hqqsjN
via IFTTT

Gold Waits For Inauguration Day

from Metals Analysis http://ift.tt/2hTYL6s
via IFTTT