BULLION LATEST 15/11: Gold price supported by dollar drop; US consumer inflation data in focus

Gold prices received some support from the drop in the dollar but continued to trade in a tight range on Wednesday November 15 as market participants awaited the release of US consumer inflation data for further cues.

The spot gold price was quoted at $1,281.20-1,281.50 per oz as of 03:40am London time, up $0.55 from the previous trading day’s close. Trade has ranged from $1,280.30-1,283.35 per oz so far today. The price had dropped as low as $1,270.05 on Tuesday, the lowest since November 6.

  • “Trading has got off to a brighter start in Asia with gold moving two dollars higher to $1,282 [per oz] in early trading. Much will depend as to whether Asia continues selling dollars with the same vigor as New York overnight,” Jeffrey Halley, senior market analyst with Oanda, said.
  • Rising bond yields and the lack of progression of US tax reforms have seen investors move to the sidelines in the gold market, ANZ Research noted on Wednesday.
  • The next cues will come from the release of the US consumer price index (CPI) later today, the bank added.
  • The consumer inflation data will be keenly watched as a weak showing could cap the dollar’s upside and raise doubts on a US interest rate rise in December.

Silver, PGMs
  • In the other precious metals, the spot silver price increased $0.025 to $17.035-17.055 per oz. Platinum rose $4 to $925-930 per oz and palladium gained $3 to $989-994 per oz.
  • On the Shanghai Futures Exchange, gold for December delivery was recently at 280 yuan ($42.18) per gram, and the December silver was at 3,874 yuan per kg.

Currency moves and data releases
  • The dollar index fell 0.03% to 93.84 as of 03:39am London time. The index dipped as low as 93.75 on Tuesday, the lowest since October 26.
  • In other commodities, the Brent crude oil spot price dipped 0.1% to $61.45 per barrel as of 03:44am London time.
  • In equities, the Shanghai Composite index was 0.71% lower at 3,405.04.
  • In US data on Tuesday, the NFIB small business index for October came in below expectations at 103.8 but above the previous reading of 103. The October producer price index (PPI) and core PPI both came in at 0.4% for October, higher than expectations of 0.1% and 0.2%, respectively.
  • Key economic data of note later today includes CPI, core CPI, core retail sales, retail sales and Empire State manufacturing from the United States.

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