Precious Metals Market Report
Wednesday 7 June, 2017
Fundamentals and News*
Gold Makes Run toward $1,300 as Risk Flares From U.K. to Mideast
Comey testimony, Qatar crisis also spurring demand for havens
‘Rising political uncertainty’ providing support, ANZ says
Gold’s making a run toward $1,300 an ounce. The metal has rallied to the highest since November as investors position themselves for the outcome of the U.K. election and potential drama of former FBI Director James Comey’s testimony, while also tracking tensions in the Middle East.
Bullion for immediate delivery was steady at $1,293.71 an ounce at 7:49 a.m. in Singapore after rising on Tuesday to $1,296.15, the highest level since Nov. 9, according to Bloomberg generic pricing. The gains have also been supported by a decline in the dollar, which has dropped to the lowest since October.
Gold has surged 13 percent in 2017, eking out gains every month in the best run since 2010. The latest leg up has been supported by an increase in haven demand as U.K. voters head to the polls on Thursday, with the outcome set to dictate how the country handles Brexit. On the same day, Comey is set to appear before a Congressional panel to testify about his investigation intoDonald Trump campaign’s ties to Russia.
“Rising political uncertainty continues to provide support for gold,” Australia & New Zealand Banking Group Ltd. said in a note, citing Comey and the U.K. polls. “This comes as the diplomatic crisis in the Middle East involving Saudi Arabia and Qatar intensifies. This has seen a continued rise in safe-haven buying of the precious metal. A weaker dollar is also playing its part.”
Saudi Arabia, the United Arab Emirates, Bahrain and Egypt severed ties with Qatar on Monday citing its support for rival Iran and for extremist groups. The crisis pits U.S. allies against each other, disrupting trade, flights and business activity in one of the world’s most strategically important regions.
(*source Bloomberg)
Data – Forthcoming Release
Technical Outlook and Commentary: Gold
Gold for Spot delivery was closed at $1294.39 an ounce; with gain of $14.59 or 1.13 percent at 1.00 a.m. Dubai time closing, from its previous close of $1279.8
Spot Gold technically seems having resistance levels at 1297.4 and 1306.1 respectively, while the supports are seen at $1269.1 and 1260.4 respectively.
Technical Outlook and Commentary: Silver
Silver for Spot delivery was closed at $17.71 with gain of $0.17 or 0.96 percent at 1.00 a.m. Dubai time closing, from its previous close of $17.54
The Fibonacci levels on chart are showing resistance at $17.77 and $17.95 while the supports are seen at $17.21 and $ 17.03 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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