BULLION LATEST 30/11: Gold price inches higher as dollar retreats

The spot gold price was up by $0.70 at $1,284.40-1,284.70 per oz as of 11.33am Shanghai time. Trade has ranged from $1,283.05-1,285.33 per oz so far in the day.

• Gold prices moved up slightly in early trading on Thursday, benefitting primarily from a weakened dollar.
• The dollar index was down by 0.12% at 93.16 as of 11.33am Shanghai time.
• On Wednesday, comments from US Federal Reserve chairwoman Janet Yellen that economic growth was broad based saw investors become more convinced that rates would go higher, according to ANZ Research.
• This was further backed up by the release of strong US data on Wednesday – see below.
• In response, the dollar pushed to a one-week high of 93.44 late on Wednesday.
• “This saw investor demand for gold weaken” ANZ Research added.
• Indeed, spot gold prices fell to $1,281.75 per oz on Wednesday, the lowest since November 23.
• However, simmering geopolitical tensions have lent support to the yellow metal after reports that North Korea had fired a missile earlier in the week.
• “The gold price has been up and down due to a battle between the positive outlook on a US interest rate hike and concerns over North Korea firing a missile again,” Citic Futures Research said.

Silver, PGMs

• In the other precious metals, the spot silver price rose $0.04 to $16.570-16.600 per oz. Platinum gained $8 at $943-948 per oz and palladium was up by $4 at $1018-1,023 per oz.
• On the Shanghai Futures Exchange, gold for June delivery was recently at 279.70 yuan ($42.34) per gram, and the June silver was at 3,899 yuan per kg.

Currency moves and data releases

• The US dollar index was down by 0.12% at 93.16 as of 11:33 Shanghai time.
• In other commodities, the Brent crude oil spot price rose 0.03% to $62.63 per barrel while the Texas light sweet crude oil spot price was flat at $57.34.
• In equities, the Shanghai Composite Index was down 0.27% to 3,328.88.
• In Chinese data, China’s November manufacturing (purchasing managers’ index) PMI came at 51.8, beating both the forecast of 51.4 and the previous figure of 51.6. Non-manufacturing PMI was also higher in November, at 54.8.
• US data was positive overnight. Third-quarter gross domestic product was revised upward to 3.3% from 3.0%, and home sales were also better, coming in at -0.6% year on year compared with a previous reading of -3.9%.
• In EU data, economic confidence rose as expected to 114.6, German consumer prices rose 0.3% month on month as forecast and was up 1.8% year-on-year, beating both the previous reading and the forecast.
• Numbers out later today include the EU unemployment rate and US personal income and spending.
• In addition, US Federal Open Market Committee members Robert Kaplan and Randal Quarles will give speeches today.