Gold price holds steady, trades in narrow range so far

Gold was stable on the morning of Thursday November 17 in London, holding a narrow range.

The spot gold price was recently quoted at $1,227.30/1,227.60 per oz, up $1.15 on Wednesday’s close. Trade has ranged from $1,224.90 to $1,229.73 so far.

The fact that gold is steady can almost be seen as positive given the firm dollar, the recent rises in bond yields and continued ETF outflows, Commerzbank noted. In currencies, the dollar index peaked at 100.57 on Wednesday, its highest since April 2003. The index was recently at 100.07, down 0.16%.

“Donald Trump’s upset victory in the US presidential election has led to a surprising amount of risk-on trading and a belief that the pledged spending will be inflationary. This combination has seen the dollar shoot higher, which has weighed on spot gold prices. The dollar’s rally is looking very robust around 100 on the index. If that were to correct, it could give gold prices some upside momentum,” Metal Bulletin analyst William Adams said.

“A Trump administration will bring with it a lot of uncertainty and, since the pledged spending could also be inflationary down the road, we would not be surprised if gold prices were well supported ultimately,” he added.

Market participants will await speeches from FOMC members William Dudley, Lael Brainard and Fed chair Janet Yellen today.

In the other precious metals, the spot silver price was unchanged at $17.035/17.055 per oz. According to the latest silver review from Thomson Reuters GFMS this morning, the global silver market will be in a physical supply deficit in 2016 for the fourth year in a row at 52.2 million oz.

The spot platinum price rose $3 to $939/949 per oz while spot palladium at $718/723 per oz was $7 higher.

(Editing by Mark Shaw)

The post Gold price holds steady, trades in narrow range so far appeared first on The Bullion Desk.

from The Bullion Desk http://ift.tt/2glcp39
via IFTTT