Precious Metals Market Report
Thursday 09 March, 2017
Fundamentals and News
Gold Tumbles as ADP Jobs Surge Bolsters Fed’s Case to Hike Rates
Gold futures drop to lowest in five weeks after a report showing a strengthening U.S. job market bolsters prospects for an interest-rate increase at next week’s FOMC meeting.
Contract for April delivery -0.6% to settle at $1,209.40/oz at 1:46 pm on the Comex in N.Y, after falling to $1,206.40, lowest intraday since Feb. 1
ADP says private payrolls +298k in Feb., most in almost three years, vs forecast for 187k
“ADP is telling us it’s almost a 100 percent certainty we’re going to see a Fed hike,” says Frank Cholly, a senior market strategist at RJO Futures in Chicago
“That’s the reason we see the market moving lower”
Bloomberg Dollar Spot Index +0.4%
U.S. 10-year yields climb to highest since December
Gold dropped below the 50-day moving average of $1,210.45, suggesting the rout may not be over
That’s showing “even more technical weakness in this case,” Cholly says
Investors pricing in 100% bet the Fed will raise borrowing costs at March 14-15 meeting
Gundlach Sees ‘Old School’ Fed Doing Sequential Hikes
In other precious metals:
Silver futures for May delivery -1.4% to $17.298/oz
Platinum futures for April delivery -1.2% to $949.50/oz
Palladium futures for June delivery -0.6% to $770.40/oz
(*source Bloomberg)
Data – Forthcoming Release
Technical Outlook and Commentary: Gold
Gold for Spot delivery was closed at $1208.31 an ounce; with loss of $7.55 or 0.62 percent at 2.00 a.m. Dubai time closing, from its previous close of $1215.86
Spot Gold technically seems having resistance levels at 1238.3 and 1248.6 respectively, while the supports are seen at $1205.1 and 1194.9 respectively.
Technical Outlook and Commentary: Silver
Silver for Spot delivery was closed at $17.23 an ounce; with loss of $0.26 or 1.51 percent at 2.00 a.m. Dubai time closing, from its previous close of $17.49
The Fibonacci levels on chart are showing resistance at $18.09 and $18.37 while the supports are seen at $17.16 and $ 16.88 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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