Precious Metals Market Report
Tuesday 28 March, 2017
Fundamentals and News
Trump Stumble Propels Gold Toward Key Level in Haven Revival
(Bloomberg)
Gold futures climbed to the highest in a month as demand for haven assets surged after a failed U.S. health-care bill stoked concern over the outlook for President Donald Trump’s economic agenda.
Bullion closed near its 200-day moving average as a gauge of the dollar dropped to the lowest since November. Yields on 10-year notes sunk to the least in a month, while U.S. equities declined for a third day. Gold hasn’t closed above the 200-day level since Nov. 7, the day before Trump was elected.
Bullion is up just over 9 percent this year, weathering an improving economic outlook that sent equities to record highs this month. Traders have turnedmore bullish on the metal as the aborted effort to replace the current health-care law calls into question prospects for tax reform and infrastructure spending that Trump has also promised. Commerzbank AG said a lasting rise above the 200-day threshold could spur follow-up buying.
“The Trump administration’s failure to get anything done on health-care reform has people concerned,” said Brad Yates, head of trading for Elemetal, one of the biggest U.S. gold refiners. “Some of the U.S. equity bullishness has been based on expectations the Trump administration will be pro-growth and pro-business, with fewer regulations. We’re seeing some of the optimism around that outcome unwinding a little bit.”
Gold futures for June delivery rose 0.6 percent to settle at $1,258.80 an ounce at 1:40 p.m. on the Comex in New York. The metal touched $1,264.20, the highest since Feb. 27 and above the 200-day level of $1,263.04.
“Any boost to the U.S. economy brought about by tax cuts and infrastructural measures would not materialize so quickly, which should in turn have a positive impact on gold,” Commerzbank analysts including Carsten Fritsch said in a report Monday.
(*source Bloomberg)
Data – Forthcoming Release
Technical Outlook and Commentary: Gold
Gold for Spot delivery was closed at $1254.86 an ounce; with gain of $11.29 or 0.90 percent at 2.00 a.m. Dubai time closing, from its previous close of $1243.57
Spot Gold technically seems having resistance levels at 1260.7 and 1268.7 respectively, while the supports are seen at $1234.6 and 1226.6 respectively.
Technical Outlook and Commentary: Silver
Silver for Spot delivery was closed at $18.11 an ounce; with gain of $0.35 or 1.93 percent at 2.00 a.m. Dubai time closing, from its previous close of $17.76
The Fibonacci levels on chart are showing resistance at $18.16 and $18.35 while the supports are seen at $17.55 and $ 17.36 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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