BULLION LATEST 17/11: Gold price gains as dollar sinks

The spot gold price rose during Asian morning trading on Friday November 17 as the dollar sank on news that investigators had subpoenaed US President Donald Trump’s election campaign documents.

The spot gold price was quoted at $1,283.20-1,283.50 per oz as of 04:07am London time, up by $4.20 compared with the previous session’s close. Trade has ranged from $1,278.95-1,284.15 so far in the day.

  • The dollar dropped after a Wall Street Journal report said that US investigators looking into possible Russian interference in the 2016 US presidential election had subpoenaed Trump’s election campaign documents.
  • The dollar index had dipped as low as 93.51 on Friday – the lowest since Wednesday – and was at 93.58 at 04:05am London time, down 0.31% from the previous session’s close.
  • “From recent market developments, there seems to be a low chance of a December rate hike not happening, but the focus now should be on the pace of rate increase by the [US Federal Reserve] in 2018,” China’s Galaxy Futures said on Friday.
  • Market participants see a 91.5% chance of the target rate rising to 125-150 basis points (bps) and 8.5% chance of increase to 150-175 bps during the US Federal Open Market Committee’s meeting on December 13, according to the CME FedWatch Tool.

Silver, PGMs

  • In the other precious metals, the spot silver price was up by $0.033 to $17.085-17.13 per oz. Platinum rose $7 to $934-939 per oz and palladium gained $6 to $991-996 per oz.
  • An apparent military coup in Zimbabwe - the world’s third largest of platinum - had spooked fears of supply disruptions, ANZ Research said on Friday.
  • On the Shanghai Futures Exchange, gold for June delivery was at 279.85 yuan ($42.20) per gram, and the December silver was at 3,874 yuan per kg.

Currency moves and data releases

  • The dollar index was down 0.31% at 93.58 as of 04:05am London time.
  • In other commodities, the Brent crude oil spot price fell 0.529% to $61.19 per barrel as of 04:11am London time.
  • In US data on Thursday, weekly unemployment claims came in at 249,000, above the 235,000 forecast. Import prices also disappointed with a 0.2%, below an expected print of 0.4%, and the Philadelphia Federal Reserve manufacturing index stood at 22.7.
  • Additionally, the capacity utilization rate improved to 77%, besting the estimate of 76.3%. Industrial production month over month ticked up 0.9%, beating the previous release of 0.4%.
  • The economic agenda is light today with mainly US building permits and housing starts of note. European Central Bank president Mario Draghi is also scheduled to speak.
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