Following a weaker session overnight, the spot gold price was marginally higher during Asian morning trading on Thursday November 30, underpinned by weakness in the dollar.
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.
The post Gold price inches higher as dollar retreats appeared first on The Bullion Desk.
Read More
Source: Bullion Desk News
