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BULLION LATEST 20/11: Gold price dips but remains near one-month high

The spot gold price eased lower during Asian morning trading on Monday November 20 on a stronger dollar, but remained near the one-month high it reached on Friday amid uncertainty over the progress of potential tax cuts in the United States.

November 20, 2017
By Generic people page

The spot gold price was recently quoted at $1291.70-1292.00 per oz, down by $1.95 as of 04:02am London time. Trade has ranged from $1291.20-1294.25 so far today.

  • Gold prices were slightly weaker on Monday as a firmer dollar put downward pressure on the yellow metal.
  • The dollar index rose by 0.27% to 93.97 as of 04:19am London time – this compares with 93.58 at roughly the same time on Friday.
  • The spot gold price had climbed to a one-month high of $1,297.20 per oz on Friday, underpinned by a weaker dollar amid uncertainty surrounding proposed tax cuts in the US, which saw demand for haven assets pick up.
  • “Prices finally broke out of the tight range it had found itself in over the past few weeks, with prices settling above $1,290 per oz. The apparent difficulty in getting tax cuts approved in the US senate has seen investors return to safe-haven assets,” ANZ Research said on Monday.
  • “Buying was also encouraged by reports that [former US Federal Bureau of Investigation director Robert Mueller] had subpoenaed the Trump Campaign for more documents regarding Russia involvement during the US presidential elections,” the bank added.


Silver, PGMs

  • In the other precious metals, the spot silver price was down by $0.105 to $17.170-17.190 per oz.
  • Platinum was $8 lower at $941-946 per oz, while palladium increased $8 to $995-$1,000 per oz.
  • On the Shanghai Futures Exchange, gold for June delivery was recently at 281.45 yuan ($42.45) per gram, and the December silver was at 3,892 yuan per kg.

Currency moves and data releases

  • The dollar index rose by 0.27% to 93.97 as of 04:19am London time.
  • In other commodities, the Brent crude oil spot price was down by 0.21% to $62.58 per barrel, and the Texas light sweet crude oil spot price decreased by 0.09% to $56.73.
  • In equities, the Shanghai Composite was down by 0.81% to 3,355.58.
  • The economic agenda is light today with mainly German producer prices, the monthly Deutsche Bundesbank report as well as CB leading indices from China and the US of note.
  • In addition, European Central Bank president Mario Draghi is speaking.