Kaloti Precious Metals-Morning Market Report-Wednesday, February 15, 2017

Published: Feb 15, 2017 13:43

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Gold Extends Slump as Fed Rate Concerns Outweigh Haven Demand

By Anil Mathews

ScrapMonster Author

Gold Extends Slump as Fed Rate Concerns Outweigh Haven Demand


OTC Trading Range For		All Times Are		As Per Dubai	Date	15/02/2017
14/02/2017			Gold	Silver	Platinum	Palladium
Open At 03.00		$1,225.26		$17.82	$998.55	$776.03
High Bid		$1,234.60		$18.08	$1,009.01	$784.90
Low Offer		$1,222.10		$17.75	$996.10	$774.06
Close At 02.00		$1,228.13		$17.95	$1,001.75	$781.50
Previous Close		$1,225.26		$17.82	$998.50	$775.85
Daily Change USD		$2.87		$0.13	$3.25	$5.65
Daily Change %		0.23%		0.72%	0.32%	0.72%
London Fixings	AM	$1,229.65		**	$1,000.00	$778.00
	PM	$1,230.75		$17.91	$1,004.00	$782.00
COMEX Trading Volume		225219		77056	11692	3648
Active Month Settlement		$1,225.40		$17.88	$1,002.20	$780.90
Previous Session		$1,225.80		$17.82	$1,000.30	$774.95
Daily Change		($0.40)		$0.06	$1.90	$5.95
EFP's		1.4/1.7		4/7	0/2	0/1
Forwards & Options		1 Month		3 months	6 months	12 months
GOFO		-		-	-	-
USD LIBOR		0.77		1.039	1.33794	1.71039
Gold ATM Vols		12.467		14.323	15.182	16.285
Silver ATM Vols		20.6		22.96	25.2	25.71
Platinum ATM Vols		19.050		18.950	18.650	18.450
Palladium ATM Vols		28.500		27.500	26.700	26.250

Market Daily & Weekly

Market Snap Shot	14/02/2017	1 Day%	1 Week %
XAU	$1,228.13	0.23	-0.47
XAG	$17.95	0.72	1.39
XPT	$1,001.75	0.32	-0.36
XPD	$781.50	0.72	2.27
Euro	1.0578	-0.19	-0.99

Note: Indications only, open and closing prices are bids; Data source: Bloomberg; Times as per Dubai

Fundamentals and News

Gold Extends Slump as Fed Rate Concerns Outweigh Haven Demand

Gold futures fell for a fourth session, extending the longest slide in more than two weeks, after Federal Reserve Chair Janet Yellen said more interest-rate increases will be appropriate if the U.S. economy stays on course.

Waiting too long to tighten monetary policy could mean central bankers would have to eventually raise rates rapidly, posing a risk to financial markets and the economy, Yellen told the Senate Banking Committee in prepared remarks Tuesday. While she gave no indication on the timing of the next rate hike, investors see a 34 percent chance of such a move next month, up from about 30 percent before she spoke.

Bullion has rallied more than 6 percent this year as concerns that Donald Trump’s policies on trade and immigration could derail U.S. growth boosted speculation that the Fed would be slow to raise borrowing costs. Gold wiped out gains of as much as 0.8 percent Tuesday after Yellen’s testimony.

“Yellen was hawkish, and this has impacted the price of gold,” Naeem Aslam, chief market analyst at Think Markets U.K. Ltd., said in an e-mail. “It is highly likely that the Fed may increase the rate three times this year and March meeting is very much live.”

Gold futures for April delivery settled at $1,225.40 an ounce at 1:38 p.m. on the Comex in New York, down less than 0.1 percent. The four-session decline is the longest since Jan. 27.

Data Forthcoming Releases



Time	Country	Today's Events	Forecast	Previous	Actual
1:30pm	GBP	Average Earnings Index 3m/y	2.8%	2.8%
1:30pm	GBP	Claimant Count Chang	1.1K	-10.1K
5:30pm	CAD	Manufacturing Sales m/m	1.4%	1.5%
5:30pm	USD	CPI m/m	0.3%	0.35
5:30pm	USD	Core CPI m/m	0.2%	0.2%
5:30pm	USD	Core Retail Sales m/m	0.4%	0.2%
5:30pm	USD	Retail Sales m/m	0.1%	0.6%
6:15pm	USD	Capacity Utilization Rate	75.6%	75.5%
7:00pm	USD	Fed Chair Yellen Testifies
7:30pm	USD	Crude Oil Inventories		13.8M

Courtesy: http://kalotipm.com.sg/kaloti-market-report-15th-february-2017

Precious Metals

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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