Precious Metals Market Report
Tuesday 15 August, 2017
Fundamentals and News*
Gold Rally Falters Near $1,300 as Dollar Climbs; Platinum Slumps
Gold futures retreated from a two-month high on diminished demand for haven assets after top U.S. national security officials said nuclear war with North Korea wasn’t imminent. Platinum fell the most in more than a month.
Bullion for delivery in December slipped 0.3 percent to settle at $1,290.40 an ounce at 1:38 p.m. on the Comex in New York. On Friday, the price settled at $1,294, the highest close for a most active contract since June 6. The dollar rose against a basket of 10 major currencies and Treasury yields climbed.
While bullion approached $1,300 last week for the third time this year, prices haven’t been able to reach that level since late 2016. Gains this time around have been fuelled by tougher rhetoric from U.S. President Donald Trump and North Korea’s improved ability to manufacture nuclear weapons. On Sunday, Central Intelligence Agency Director Mike Pompeo and national security adviser H.R. McMaster said there’s no indication war will break out.
A test of $1,300 “would be an important checkpoint for gold,” Joni Teves, a strategist at UBS Group AG in London, said in an emailed statement. “This area has proven to hold strong resistance so far this year and is likely to attract some selling.”
The dollar rose against the yen for the first time in five days as Treasury yields climbed after top U.S. national security officials said nuclear war with North Korea wasn’t imminent.
The greenback rebounded after its biggest weekly drop versus the Japanese currency since May. The Asian nation’s importers returned from a three-day weekend, with the spot at their preferred end of the broader range, according to a regional foreign-exchange trader, who asked not to be identified as the person isn’t authorized to speak publicly. The Australian dollar pared earlier gains after China’s factory output and fixed-asset investment data missed economists’ estimates
(*source Bloomberg)
Data – Forthcoming Release
Technical Outlook and Commentary: Gold
Gold for Spot delivery was closed at $1282.15 an ounce; with loss of $7.16 or -0.56 percent at 1.00 a.m. Dubai time closing, from its previous close of $1289.31
Spot Gold technically seems having resistance levels at 1289.6 and 1298.7 respectively, while the supports are seen at $1259.9 and 1250.7 respectively.
Technical Outlook and Commentary: Silver
Silver for Spot delivery was closed at $17.08 with LOSS of $0.03 or -0.18 percent at 1.00 a.m. Dubai time closing, from its previous close of $17.11
The Fibonacci levels on chart are showing resistance at $17.24 and $17.47 while the supports are seen at $16.46 and $ 16.23 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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