Precious metals rose on Tuesday after their impactful retreat on Monday. The market was eagerly waiting for the Federal Reserve minutes due on Wednesday.
After a substantial slump on Monday, gold futures for December delivery rose 0.5% on Tuesday and closed at $1,281.7 per ounce.
As December approaches, discussion of a potential interest rate hike is growing. A hike is of particular concern to market participants because it could affect equities, currencies, and commodities. A higher interest…
All four precious metals saw a down day on Monday, November 20. Gold fell 1.6% to $1,275.30 per ounce, after touching a one-month high on Friday, November 17. The fall in…
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Gold prices initially edged lower for the day on Thursday, November 16. However, they later turned marginally higher, closing at $1,278.2 per ounce.
Gold saw a down day on Wednesday, November 15, 2017. Gold futures for December delivery were 0.41% lower for the day and ended at $1,277.70 per ounce.
Gold futures for December delivery were down yesterday, touching the day’s low of $1,269.7 per ounce and ending the day at $1,282.9 per ounce.
Besides the impact of interest rates, there are also other global indicators that could play on precious metals—the most important being the US dollar.
Moving away from cash in either direction on the seesaw increases return. On the rate-sensitive side, moving away from the center increases duration—a measure of interest-rate risk—but investors are compensated with higher yields.
The overall market environment plays a substantial role in the movement of precious metals. Soaring equities could lure investors to more risky investments.
If we look beyond the dollar influence on precious metals, we can analyze how the probability of an interest rate hike could influence precious metals and their miners.
All four precious metals, except palladium, saw an up day on Monday, November 13, 2017. Gold futures for December delivery rose 0.37%.
Gold touched its three-week high level on Thursday, November 9, of $1,289.5 and closed at $1,287.5 per ounce.
Precious metals had a mixed reaction on Tuesday. Eldorado Gold (EGO) and Cia De Minas Buenaventura (BVN) fell 3.2% and 1.4%, respectively.
Gold fell on November 7 after witnessing a rise of almost 1% the previous trading day. Gold futures for December delivery fell 0.45% on Tuesday.
Investors are anticipating tax reforms in the US that would significantly reduce the tax rates for companies and individuals.
China’s gold consumption in 2017 has picked up in 2017 after being lukewarm in 2016.
The latest COT report showed that money managers have cut their long positions for the seventh straight week.
While China and Russia have the fifth and sixth largest gold reserves globally, the movements in them are the most watched by gold investors the world over mainly because these economies have been quite vocal about adding gold reserves.