Precious Metals Market Report
Wednesday 19 July, 2017
Fundamentals and News*
S&P 500, Nasdaq Composite Hit Records; Gold Climbs
The dollar slid to an 11-month low and U.S. stocks clawed back earlier losses to reach record levels, as President Donald Trump’s economic revitalization agenda once again faltered. European shares dropped amid earnings disappointments, and gold rose to the highest level this month.
The greenback lost ground against all but one of its G-10 peers on signs Trump’s healthcare reform bill is effectively dead in its current form, after two more Republican senators announced their opposition to the plan. Sterling bucked the trend, slipping against the dollar as U.K. inflation unexpectedly slowed in June, while the euro surged ahead of this week’s ECB meeting.
The S&P 500 Index rose slightly to reach an all-time high, while the Nasdaq Composite Index also climbed to a record close. The Stoxx Europe 600 Index fell following a grim earnings report from Ericsson AB. Iron ore futures hit their highest since May on strong demand from Chinese steel mills.
While many traders had already dialed back their expectations Trump will be able to execute his pro-growth policies, the apparent death of the health-care bill lent a risk-off tone to markets. Some notable investors have become less sanguine as global equities continue to trade near record highs.
“Any hopes of dollar support from a successful vote on the Senate’s health-care bill look to be vanishing,” said Rodrigo Catril, a currency strategist at National Australia Bank Ltd. in Sydney. “Near term, the dollar path of least resistance is down. We still think the data — inflation in particular — will provide the Fed with enough ammunition to hike in December and boost the dollar, but this is a fourth-quarter story.”
(*source Bloomberg)
Data – Forthcoming Release
Technical Outlook and Commentary: Gold
Gold for Spot delivery was closed at $1242.47 an ounce; with gain of $8.36 or 0.67 percent at 1.00 a.m. Dubai time closing, from its previous close of $1234.11
Spot Gold technically seems having resistance levels at 1245.4 and 1252.8 respectively, while the supports are seen at $1221.7 and 1214.4 respectively.
Technical Outlook and Commentary: Silver
Silver for Spot delivery was closed at $16.28 with gain of $0.17 or 1.04 percent at 1.00 a.m. Dubai time closing, from its previous close of $16.11
The Fibonacci levels on chart are showing resistance at $16.35 and $16.52 while the supports are seen at $15.80 and $ 15.63 respectively.
Resistance and Support Levels
Indications only, open & closing prices are bids; data source: Bloomberg; important disclaimer below; Times as per Dubai
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