BULLION LATEST 14/11: Gold price in tight range, awaits US inflation data

The gold price was slightly lower but traded within a tight range on Tuesday November 14 as buyers took to the sidelines as they awaited the release of US inflation data for further direction.

The spot gold price was quoted at $1,275.80-1,276.25 per oz as of 03:28am London time, down $1.55 from the previous trading day’s close. Trade has ranged from $1,275.50-1,278.15 so far today. The price had fallen as low as $1,273.50 on November 10 – its lowest since November 7.

  • “Gold prices continued to trade in a very tight range as investors await cues from global markets. Rising bond yields and the lack of progress of US tax reforms have seen investors move to the sidelines in the gold market. The next cues will come from the US [consumer price index], which is released on Wednesday,” ANZ Research said on Tuesday.
  • A reading of less than the expected 1.7% year-on-year on the core measure will likely prompt some renewed doubts on the US Federal Reserve raising interest rates in December and hurt the dollar, the National Australia Bank said.
  • “Gold appears to have settled into a wait-and-see mode with traders chasing their tails on any scraps of news. With the data front picking up as the week progresses, patience is required in the absence of any geopolitical event risk,” Jeffrey Halley, senior market analyst at Oanda, said on Tuesday.

Silver, PGMs

  • In the other precious metals, the spot silver price decreased $0.015 to $16.99-17.01 per oz. Platinum rose $2 to $928-933 per oz and palladium gained $9 to $994-999 per oz.
  • On the Shanghai Futures Exchange, gold for December delivery was recently at 275.10 yuan ($41.45) per gram, and the December silver was at 3,866 yuan per kg.

Currency moves and data releases

  • The dollar index fell 0.05% to 94.48 as of 03:24am London time.
  • In other commodities, the Brent crude oil spot price dipped 0.25% to $62.91 per barrel as of 03:32am London time.
  • In equities, the Shanghai Composite index was 0.54% lower at 3,429.20.
  • In China data today, industrial production grew 6.2% year on year in October, slightly below the forecast 6.3%, while fixed asset investment in the January-October period increased 7.3% on an annual basis, in line with expectations. The country’s retail sales for October surprised to the downside with year-on-year growth of 10% – below the expected print of a 10.5% increase.
  • Key economic data of note later today includes producer prices from the United States, alongside European Union flash gross domestic product and the German ZEW economic sentiment.
  • In addition, European Central Bank president Mario Draghi and Federal Reserve chair Janet Yellen are due to speak later today.
  • The US October inflation data to be released on Wednesday will also be keenly watched with anything less than the expected 1.7% year-on-year reading on the core measure likely to prompt some renewed doubts on the US Federal Reserve raising US interest rates in December and hurt the dollar, National Australia Bank noted.