Precious Metals Market Report
Tuesday 30 May, 2017
Fundamentals and News*
Gold near May Highs as Investors Weigh U.K. Election, U.S. Rates
Markets closed in China, U.K. and U.S. for holidays
Gold steady near its May highs as growing uncertainty over U.K. election next month counters impending interest rate increase in U.S.
Bullion for immediate delivery flat at $1,267.04/oz at 10:32am in London, after posting third weekly gain in period through May 26: Bloomberg generic pricing
Metal touched $1,269.55 on Friday, highest since May 1
A gauge of the dollar steady after +0.1% last week
U.K. election on June 8 getting tighter, with poll showing Theresa May’s Conservative Party leading main opposition Labour Party by just 5 points
“Increasing political uncertainty continues to invoke safe haven buying with polls showing Prime Minister May losing ground to her main opponent ahead of next month’s election,” ANZ analysts write in May 29 note
North Korea Fires Ballistic Missile, Drawing Ire of Neighbors
Federal Reserve Bank of San Francisco President John Williams sees inflation approaching 2% within year or so.
Three rate increases includes the Fed’s March hike, he says
Important to look at medium term, “this is now quite favorable.”
Stronger performance of economy “will help inflation move up to 2%”; some effects holding inflation down are “transitory”
With economy at full employment, “we are in a good place”
If data comes in stronger or better than expected, “we’ll probably raise rates a little faster than that,” or if it disappoints, then Fed will raise rates “a little slower”
He says not many risks in the macro economy that keeps him up at night
He’s not worried about “hard landing” in China; leaders in China have been “realistic” about economy and realized for some time it won’t be growing as high as 10% as it did in past
Williams comments to reporters in Singapore before delivering speech at Symposium on Asian Banking and Finance
Markets closed in China, U.K. and U.S. for holidays
Silver +0.1% to $17.3745/oz
Platinum -0.2% to $958.70/oz
Palladium +0.6% to $796.67/oz
(*source Bloomberg)
Data – Forthcoming Release
Technical Outlook and Commentary: Gold
Gold for Spot delivery was closed at $1268.10 an ounce; with gain of $1.34 or 0.11 percent at 1.00 a.m. Dubai time closing, from its previous close of $1266.76
Spot Gold technically seems having resistance levels at 1269.7 and 1274.7 respectively, while the supports are seen at $1253.7 and 1248.7 respectively.
Technical Outlook and Commentary: Silver
Silver for Spot delivery was closed at $17.39 with gain of $ or -0.23 percent at 1.00 a.m. Dubai time closing, from its previous close of $17.35
The Fibonacci levels on chart are showing resistance at $17.46 and $17.59 while the supports are seen at $17.04 and $ 16.91 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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