Gold Silver Market Report 16 June 2017


Precious Metals Market Report 
Friday 16 June, 2017 



Fundamentals and News*

Gold Climbs From Three-Week Low as Investors Weigh Fed Rate Path

Gold advances from lowest close in almost three weeks as investors assess probability of future U.S. interest rate hikes after Federal Reserve raised borrowing costs for third time in six months Wednesday.

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Bullion for immediate delivery +0.2% to $1,263.26/oz by 1:43pm in Singapore: Bloomberg generic pricing

Precious metal -0.5% Wed. to $1,260.86, lowest close since May 25

Bloomberg Dollar Spot Index little changed after -0.2% Wed.

Policy makers maintained outlook for one more hike in 2017 and set out some details for how they intend to shrink $4.5 trillion balance sheet this year

“Despite the Fed’s decision to raise rates and commit to a path of interest rate normalization, there remain concerns about the outlook for inflation, and future rate hikes,” John Sharma, an economist at National Australia Bank, says in email

With Fed stating that its committee is monitoring inflation developments closely, markets interpreted this as sign future rate rises will be more measured, which should support gold: Sharma

NOTE: Yellen Doubles Down on Bet Hot Job Market Stokes Inflation

“If the market starts pricing in the end to the current hiking cycle, this would remove a major headwind for gold and allow prices to breach the stubborn $1,300 threshold in a sustained move higher,” Suki Cooper, an analyst at Standard Chartered, writes in June 15 note

NOTE: Mueller Said to Examine Whether Trump Sought to Slow Flynn Probe

In China:

Bullion of 99.99 percent purity -0.5% to 277.88 yuan/gram on Shanghai Gold Exchange, fifth decline in six days

On Shanghai Futures Exchange: o Gold for Dec. -0.5% to 280.35 yuan/gram o Silver for Dec. +0.2% to 4,063 yuan/kg

In other precious metals:
Spot silver +0.6% to $16.9970/oz
(*source Bloomberg)

Data – Forthcoming Release


Technical Outlook and Commentary: Gold

Gold for Spot delivery was closed at $1253.98 an ounce; with loss of $6.88 or –0.55 percent at 1.00 a.m. Dubai time closing, from its previous close of $1260.86

Spot Gold technically seems having resistance levels at 1274.20 and 1281.40 respectively, while the supports are seen at $1250.90 and 1243.70 respectively.

Technical Outlook and Commentary: Silver

Silver for Spot delivery was closed at $16.75 with LOSS of $0.14 or -0.84 percent at 1.00 a.m. Dubai time closing, from its previous close of $16.89

The Fibonacci levels on chart are showing resistance at $17.29 and $17.49 while the supports are seen at $16.65 and $ 16.45 respectively.

Resistance and Support Levels

Indications only, open & closing prices are bids; data source: Bloomberg; important disclaimer below; Times as per Dubai

This analysis is also available at Kaloti Precious Metals SG
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