Precious Metals Market Report
Friday 14 July, 2017
Fundamentals and News*
Gold Drops as Yellen Says Inflation Risk ‘Two-Sided’
Gold ended lower after Federal Reserve Chair Janet Yellen said it’s “prudent” for the central bank to remain on a gradual path of rate increases as inflation risks are “two-sided.”
“It is premature to conclude the underlying inflation trend is falling well short of 2%,” Yellen says Thursday in comments to the Senate Banking Committee
August futures contract -0.1% to settle at $1,217.30/oz at 1:42pm on Comex in NY o Metal +0.6% this week
Bloomberg Dollar Spot Index drop for fourth day
NOTE: The U.S. may start to see higher wages and prices as economic slack shrinks, Yellen says in a second day of testimony
Metals will fluctuate as people “assess” the Fed’s path, Guy Wolf, global head of market analytics at Marex Spectron, says by phone
There are “concerns” about interest rate hikes, the dollar and positivity around the global economic environment
Silver futures fall on Comex
Platinum and palladium drop on Nymex
August futures contract climbs 0.4% to settle at $1,219.10/oz at 1:43pm on Comex, third straight gain.
NOTE: Yellen Sees Inflation as Key Uncertainty, Amid Moderate Growth
“There is, for example, uncertainty about when — and how much — inflation will respond to tightening resource utilization,” Fed Chair Janet Yellen says in remarks prepared for delivery to U.S. House Financial Services Committee
The Fed is “questioning” the path of inflation this year, Phil Streible, a senior market strategist at RJO Futures in Chicago, says in a telephone interview “Gold is reacting to that” – “The Fed may raise rates one more time”
Bloomberg Dollar Spot Index -0.4%, falling a third day
(*source Bloomberg)
Data – Forthcoming Release
Technical Outlook and Commentary: Gold
Gold for Spot delivery was closed at $1217.58 an ounce; with loss of $2.93 or 0.24 percent at 1.00 a.m. Dubai time closing, from its previous close of $1220.51
Spot Gold technically seems having resistance levels at 1226.1 and 1231.6 respectively, while the supports are seen at $1208.1 and 1202.6 respectively
Technical Outlook and Commentary: Silver
Silver for Spot delivery was closed at $15.70 with loss of $0.21 or -1.34 percent at 1.00 a.m. Dubai time closing, from its previous close of $15.91
The Fibonacci levels on chart are showing resistance at $1606 and $16.30 while the supports are seen at $15.31 and $ 15.07 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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