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.
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.
- 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.