BULLION LATEST 11/01: Gold prices rise on dollar weakness; other precious metals higher

The spot gold price was quoted at $1,319.05-1,319.35 per oz as of 11.39am Shanghai time, up by $2.05 from the previous session’s close. Trade has ranged from $1,317.05-1,320.78 so far today.

• The yellow metal benefited from a softer dollar during early trade on Thursday.
• The dollar index was down by 0.06% at 92.28 as of 11:10am Shanghai time – this compares with its recent high of 92.64 reached on Tuesday.
• A review of China’s foreign exchange reserve holdings recommended slowing or halting purchases of US Treasuries, according to a Bloomberg report on Wednesday.
• “This initially steepened the US yield curve and kept the dollar on the defensive,” ANZ Research noted on Thursday.
• Key now for the currency will be the raft of important data releases later this week – including the US consumer price index and retail sales due on Friday – which investors will be eyeing for further direction in the dollar and conversely in the price of gold.

Silver, PGMs

• In the other precious metals, the spot silver price rose $0.03 to $16.995-17.035 per oz. Platinum increased $6 to $973-978 per oz and palladium gained $4 to $1,089-1,094 per oz.
• On the Shanghai Futures Exchange, gold for June delivery was recently at 281.20 yuan ($43.15) per gram, and the June silver was at 3,887 yuan per kg.

Currency moves and data releases

• The dollar index was down by 0.06% to 92.28 as of 11.10am Shanghai time.
• In other commodities, the Brent crude oil spot price was up by 0.1% to $63.52 per barrel as of 11.10am Shanghai time.
• In equities, the Shanghai Composite was down by 0.3% to 3,411.46 as of 11.00am Shanghai time.
• In data on Wednesday, UK manufacturing production rose by 0.4% in November, surpassing an expected 0.3% increase. US import prices disappointed with a 0.1% rise compared with expected growth of 0.4%, while crude oil inventories declined by 4.9 million barrels from the prior week.
• The economic agenda is fairly busy today with EU industrial production, the European Central Bank’s monetary policy meeting accounts and a host of US data that includes producer prices, unemployment claims, IBD/TIPP economic optimism and the federal budget balance.
• In addition, US Federal Open Market Committee member William Dudley is speaking.