Precious Metals Market Report
Tuesday 8 August, 2017
Fundamentals and News*
Holdings in Biggest Gold ETF Decline to 17-Month Low
Holdings in SPDR Gold Shares, the largest ETF backed by the metal, shrank to lowest since March 2016 amid speculation that stellar U.S. jobs market will bolster Fed’s case for more rate hikes this year.
Holdings dropped to 787.14 metric tons as of Friday; 5th straight week of declines
Money managers boosted net-long position by 64% to 122,773 contracts in gold futures & options in week ended Aug. 1, three days before the jobs report was released
Gain in dollar after jobs report Friday caused traders to think positions may be “a little overextended,” Phil Streible, senior market strategist at RJO Futures in Chicago, says in telephone interview
Traders speculate “the Fed will go on with interest-rate hike action, as well as reduce the balance sheet”
Gold futures for Dec. delivery climbed less than 0.1% Monday to settle at $1,264.70/oz by 1:38pm on the Comex in N.Y.
Metal settled traded near lowest since July 26
NOTE: On Friday, U.S. government said payrolls rose 209k, vs est. 180k
Avg. hourly earnings +2.5% from year earlier, faster than +2.4% est.
Fed “is likely to view the data as good reason to further normalize its monetary policy,” Commerzbank analysts including Eugen Weinberg say in note
China Central bank kept gold reserves unchanged for ninth month – Holdings at 59.24m oz by end-July, at same level since end-Oct.: People’s Bank of China data
Other precious metals: Silver futures for Sept. delivery slip on Comex, Platinum futures rise on the Nymex, along with Palladium futures
(*source Bloomberg)
Data – Forthcoming Release
Technical Outlook and Commentary: Gold
Gold for Spot delivery was closed at $1257.85 an ounce; with loss of $1.03 or -0.08 percent at 1.00 a.m. Dubai time closing, from its previous close of $1258.88
Spot Gold technically seems having resistance levels at 1269.7 and 1274.4 respectively, while the supports are seen at $1254.5 and 1249.8 respectively.
Technical Outlook and Commentary: Silver
Silver for Spot delivery was closed at $16.27 with theno change of $0.0 or 0 percent at 1.00 a.m. Dubai time closing, from its previous close of $16.27
The Fibonacci levels on chart are showing resistance at $16.76 and $16.95 while the supports are seen at $16.14 and $ 15.95 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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