Precious Metals Market Report
Monday 08 May, 2017
Fundamentals and News*
Gold Steady at 7-Week Low As Macron Wins French Election By Decisive Margin
Gold prices held at seven-week lows after Emmanuel Macron was elected president of France on Sunday, defeating far-right candidate Marine Le Pen in the second round and bringing relief to the market.
Spot gold was trading at $1,226.90 during the opening hours of the Asian session on Monday, holding largely steady as the results were announced.
Pro-Europe, market-friendly Macron won with 65.31% of valid votes cast so far, official figures from the French Interior Ministry confirmed on Sunday. The results calmed market fears of Le Pen’s threats to take France out of the European Union.
Macron’s win puts a 35-percentage-point gap between him and Le Pen, beating a previously estimated 20-percentage-point lead projection.
The next step for Macron will be to secure a majority in June’s parliamentary election for En Marche! (Onwards!), his new political movement that is not even a year old yet.
With the French election results largely matching market expectations, the focus will now shift to the U.S.monetary policy, BNP Paribas said in note to clients.
Latest positive U.S. macro data are offering additional support for a June rate hike, with market expectations rising.
“The strong April employment report, with strong job gains and the unemployment rate falling to 4.4%, followed an FOMC meeting that emphasized the importance of the labor market in their deliberations. A June hike is now much more likely. By contrast, we think the final outcomes on health care, spending, and taxes, remain far less clear,” Nomura Global Research said in a note
(*source Kitco)
Data – Forthcoming Release
Technical Outlook and Commentary: Gold
Gold for Spot delivery was closed at $1228.01 an ounce; with loss of $0.15 or 0.01 percent at 1.00 a.m. Dubai time closing, from its previous close of $1228.16
Spot Gold technically seems having resistance levels at 1259.1 and 1269.8 respectively, while the supports are seen at $1224.3 and 1213.6 respectively.
Technical Outlook and Commentary: Silver
Silver for Spot delivery was closed at $16.34 with loss of $0.02 or 0.10 percent at 1.00 a.m. Dubai time closing, from its previous close of $16.33
The Fibonacci levels on chart are showing resistance at $17.01 and $17.26 while the supports are seen at $16.20 and $ 15.95 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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