Gold tops $1,290/oz on dollar weakness

The spot gold price topped $1,290 per oz on Wednesday November 2 as the US dollar softened on market jitters ahead of US presidential elections next week.

The spot gold price was recently quoted at $1,289.60/1,290.00 per oz, up $1.50 on the previous close. Trade has ranged from $1,287.30 to $1,291.15 so far.

The US dollar index dipped below 98 on Tuesday – it was last below this level on October 20 – as investors turned jittery at the prospect of Donald Trump becoming the next US president after a Washington Post/ABC poll showed Trump with a one point lead over Hillary Clinton. The index was recently at 97.70 on Wednesday, down 0.05% from its previous close.

“With the heightened focus on the elections, we would really like to look forward and consider the two questions that may emerge at the top of our minds post-elections – how would the growth be like under the new administration and how will the Fed communicate their intentions in the new year,” Jingyi Pan, a market analyst at IG, said.

“These are some questions that could receive some attention in one week’s time and until then, safe havens indeed appear welcoming,” she said. 

Market participants will focus on the outcome of the US Federal Open Market Committee (FOMC) meeting and its statement later today, though most do not expect a rate change in this meeting.

“[The FOMC statement] should be a fairly benign affair, with various Fed officials having said in recent weeks that there is reason for the Fed to pass on November and await the next ‘set piece’ meeting in December and after the US election has passed – the latter now an even more pressing constraint,” National Australia Bank said on Wednesday morning. 

“With markets still pricing risk of a December rate hike at 70%, the Fed has no need to put markets any further on the scent,” the bank added.

In US data released Tuesday, the ISM manufacturing PMI in October stood at 51.9, slightly above the forecast of 51.8. Manufacturing prices over the same period at 54.5 also beat the expected 54.0.

The final manufacturing PMI in October came in at 53.4, a touch above the predicted 53.2. Construction spending in September at -0.4% missed the forecast 0.5%. Lastly, IBD/TIPP economic optimism in November was 51.4, above projections of 54.0.

A string of manufacturing PMI data from the EU and Eurozone countries, as well as the ADP non-farm employment change and crude oil inventories from the US are due later today.

In other commodities, the Brent crude oil spot price fell 0.18% to $47.81 per barrel and the Texas light sweet crude oil spot price decreased 0.11% to $46.29 so far on Wednesday.

In equities, the Shanghai Composite fell 0.26% to 3,114.37 recently on Wednesday.

In the other precious metals, the spot silver price rose $0.055 to $18.41/18.43 per oz. Platinum at $988/993 per oz was up $1 and palladium climbed $3.50 to $628/635 per oz.

The post Gold tops $1,290/oz on dollar weakness appeared first on The Bullion Desk.

from The Bullion Desk http://ift.tt/2fc2dWV
via IFTTT