BULLION LATEST 13/11: Gold price flat on stronger dollar, awaits US inflation data

The gold price was relatively flat during trading on Monday November 13 as a stronger dollar checked the yellow metal’s upside while investors await US inflation data due later this week for further direction.

The spot gold price was quoted at $1,275.75-1,276.05 per oz as of 03:36am London time, up just $0.30 from the previous trading day’s close. Trade has ranged from $1,274.70-1,276.65 so far today. The price had fallen as low as $1,273.50 last Friday, the lowest since November 7.

  • The spot gold price came under pressure last Friday after US treasury yields increased steadily while investors mulled a delayed start to tax reforms in the United States after the US Senate Republican tax cut plan showed that a corporate tax cut will not be implemented until 2019.
  • Market participants are awaiting US October inflation data due on Wednesday.
  • “Anything less than the expected 1.7% year-on-year reading on the core measure will prompt some renewed doubts on a December Fed rate rise and hurt the US dollar,” the National Australia Bank said on Monday morning.

Silver, PGMs rise

  • In the other precious metals, the spot silver price increased $0.07 to $16.89-16.91 per oz. Platinum rose $5 to $929-934 per oz and palladium gained $7 to $999-1,004 per oz.
  • On the Shanghai Futures Exchange, gold for December delivery was recently at 275.25 yuan ($41.45) per gram, and the December silver was at 3,867 yuan per kg.

Currency moves and data releases

  • The dollar index rose 0.14% at 94.53 as of 03:37am London time – the index had reached as low as 94.26 last Friday, the lowest since October 26.
  • In other commodities, the Brent crude oil spot price dipped 0.2% to $63.52 per barrel as of 03:39am London time.
  • In equities, the Shanghai Composite index was 0.3% higher at 3,442.99.
  • Last Friday, China moved towards further financial liberalization as it announced that it was easing foreign ownership limits on banks and allowing foreign firms majority ownership in joint ventures with Chinese securities companies and life insurers.
  • In US data on Friday, the preliminary University of Michigan (UoM) consumer sentiment came in at 97.8, below the forecast of 100.8. Preliminary UoM inflation expectations stood at 2.6%, an increase on the previous figure of 2.4%.
  • The economic agenda is light today with mainly the German WPI of note. Investors will focus on a string of Chinese economic data due from Tuesday onward – these include industrial production, fixed asset investment, retail sales and foreign direct investment.