Gold prices were well-bid on Friday September 8 as weaker-than-expected US economic data and the ECB’s decision to leave interest rates unchanged, as well as continued geopolitical risks, maintained pressure on the dollar.
The spot gold price was recently quoted at $1,352.50/1,352.90 per oz, up $5.2 from the previous trading day’s close. Trade has ranged from $1,347.55 to $1,353.75 so far today.
• The dollar index on Friday morning was down 0.08 to 91.45. Overnight US jobless claims surged to a two-year high because of Hurricane Harvey, which raised doubts over further US interest rate hikes in December.
• ECB policymakers indicated at their meeting overnight that the European central bank was not intending to weaken the common European currency, which is expected to support euro performance in the short-term. The ECB maintained rates and upgraded its growth forecast this year by 0.3ppt to 2.2%, but maintained its 2018-19 forecast.
• “Geopolitical risks also remain at front of mind, with the USA pushing hard for additional sanctions against North Korea. This has kept safe-haven buying relatively strong,” said ANZ bank in a note.
• “Lingering North Korean tensions and general US dollar weakness propelled gold $15 higher to new 2017 highs overnight, touching $1,249.98 and closing just below at $1,249.50. Gold continues breathing thin air at these rarified levels with the next technical target at $1,375.00,” said Jeffrey Halley, senior market analyst at OANDA.
Silver and PGMS rise
• In the other precious metals, the spot silver price was down $0.075 at $18.140/18.160 per oz. Platinum was up $6 to $1017/1022 per oz, while palladium rose $8 to $960/965 per oz.
• On the Shanghai Futures Exchange, gold for December delivery was recently at 283.35 yuan ($43) per gram, and the December silver was at 4,053 yuan per kilogram
Currency moves and data releases
• In other commodities, the Brent crude oil spot price was up $0.1 at to $54.59 per barrel and the Texas light sweet crude oil spot price up $0.05 at $49.15 per barrel.
• In equities, the Shanghai Composite Index was down 0.39% to 3379.54.
• China’s central bank today hiked the RMB/Dollar middle rate to 6.5032, its highest since May 12, 2016, and 237 points higher than the previous day’s close.
• In data, Chinese and German trade balance data are due later today; French and British industrial production figures are also expected, and in the USA, a speech by FOMC member Patrick Hawker will be watched closely by the market.
The post BULLION LATEST 08/09: Haven assets well-bid amid weaker dollar, geopolitical risks appeared first on The Bullion Desk.
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Source: Bullion Desk News
