Gold Silver Market Report 4 July 2017

Fundamentals and News^*

Gold Drops to Seven-Week Low as U.S. Bond Yields Climb

Bullion for immediate delivery extends slide to lowest intraday level in almost 7 weeks as global equities trade near record and bond yields climb, damping demand for a haven.

Price as much as -0.5% to $1,235.71/oz, lowest since May 16, before trading at $1,236.13 by 2:23pm in Singapore

June’s -2.2% was first monthly loss of ‘17 and bullion remains +7.7% YTD

Improved risk outlook “together with stubbornly low inflation are negatives for the gold price,” says Ric Spooner, chief market analyst at CMC Markets in Sydney

While weaker dollar supportive, “net effect of these competing influences has been to confine gold to a trading range,” Spooner says

Global equities have gained for 8 months, with MSCI World Index hitting all-time high in June

Yield on 10-year U.S. Treasuries climbs as high as 2.3285%, level not seen since mid-May, after jumping last week by most since Nov.

“Yields are rising in response to a market rethink on the timing of central bank plans to reduce QE programs,” says Spooner, referring to quantitative easing. “Despite low inflation, this move in bonds may have further to go, and will be another short-term negative for the gold price”

Bloomberg Dollar Spot index holds near 9-month low

Fed’s Bullard repeats view that current rates appropriate

U.S. disinflation builds, will help real spending rebound: BI

In China:
Bullion of 99.99 percent purity -0.4% to 271.95 yuan/gram on Shanghai Gold Exchange, heads for lowest close since March

On Shanghai Futures Exchange: o Gold for Dec. -0.4% to 274.4 yuan/gram, drops for 5th day o Silver for Dec. -0.4% to 3,999 yuan/kg

In other precious metals:
Silver -0.4% to $16.5790/oz
Platinum -0.5% to $921.36/oz
Palladium +0.3% to $846.50/oz; climbs from 3-week low
(*source Bloomberg)
 

Data – Forthcoming Release

Technical Outlook and Commentary: Gold

Gold for Spot delivery was closed at $1220.2 an ounce; with loss of $21.41 or 1.75 percent at 1.00 a.m. Dubai time closing, from its previous close of $1241.61

Spot Gold technically seems having resistance levels at 1245.2 and 1253.9 respectively, while the supports are seen at $1217.10 and 1208.40 respectively.

Technical Outlook and Commentary: Silver

Silver for Spot delivery was closed at $16.13 with loss of $0.50 or 3.10 percent at 1.00 a.m. Dubai time closing, from its previous close of $16.63

The Fibonacci levels on chart are showing resistance at $16.68 and $16.87 while the supports are seen at $16.07 and $ 15.88 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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