Home / Metal News / Precious Metals / Kaloti Precious Metals-Morning Market Report-Thursday, March 16, 2017
Kaloti Precious Metals-Morning Market Report-Thursday, March 16, 2017
Mar 17,2017 09:38CST
industry news
Gold price rebounds after dovish Fed.

By 

ScrapMonster Author

Gold price rebounds after dovish Fed.

OTC Trading Range For

All Times Are

As Per Dubai

Date

16/03/2017

15/03/2017

 

Gold

Silver

Platinum

Palladium

Open At 03.00

 

$1,199.02

$16.87

$937.85

$742.47

High Bid

 

$1,222.09

$17.35

$954.58

$766.70

Low Offer

 

$1,197.59

$16.82

$931.99

$741.66

Close At 02.00

 

$1,219.88

$17.34

$954.00

$762.89

Previous Close

 

$1,199.12

$16.88

$937.72

$742.44

Daily Change USD

$20.76

$0.46

$16.28

$20.45

Daily Change %

 

1.70%

2.65%

1.71%

2.68%

London Fixings

AM

$1,202.25

**

$940.00

$748.00

 

PM

$1,198.80

$16.91

$933.00

$744.00

COMEX Trading Volume

257065

71365

17279

4626

Active Month Settlement

$1,200.70

$16.92

$936.80

$745.45

Previous Session

 

$1,202.60

$16.92

$938.90

$741.70

Daily Change

 

($1.90)

$0.00

($2.10)

$3.75

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

 

0.92833

1.13733

1.43239

1.82344

Gold ATM Vols

 

11.280

13.070

13.88

15.105

Silver ATM Vols

 

20.06

21.37

22.16

23.525

Platinum ATM Vols

17.250

17.250

17.250

17.500

Palladium ATM Vols

24.750

24.700

24.900

25.100

Market Daily & Weekly

v Market Daily & Weekly:

 

 

 

 

Market Snap Shot

15/03/2017

1 Day%

1 Week %

XAU

 

$1,219.88

1.70

0.95

XAG

 

$17.34

 

2.65

0.63

XPT

 

$954.00

1.71

0.76

XPD

 

$762.89

2.68

-1.00

Euro

 

1.0734

 

1.21

1.80

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

Fundamentals and News

Gold price rebounds after dovish Fed

After drifting sideways since Monday, gold spiked back above the important $1,200 an ounce level on Wednesday after dovish talk from the US Federal Reserve following a widely expected hike in interest rates.

Gold for delivery in April, the most active contract on the Comex market in New York with nearly 23m ounces traded, was trading just below $1,200 before the decision, but shot up $20 after Fed officials signaled only two more rate hikes this year, below what most economists had been predicting. Today's rate hike was only the third adjustment higher in a decade.

Because gold is not yield-producing and investors have to rely on price appreciation for returns, the metal has a strong inverse correlation to US government bond yields which slumped on the news.

The metal also usually moves in the opposite direction of the US dollar and as the charts show the greenback also came in for punishment after the statement.

Latest data also showed a jump in inflation in the world's largest economy, with the rate of price growth nearly doubling in the twelve months to end January this year. Gold traditionally is viewed as a hedge against inflation.

Gold's downtrend ahead of today's decision and the subsequent spike is a familiar pattern Ole Hansen, head of commodity strategy at Saxo bank recently pointed out:

The last two times the FOMC raised rates gold reacted negatively in the run-up to the announcement only to rally afterwards. In December 2015, gold lost 2% during the month leading up to the hike, only to rally by 2.6% the following month. The before-and-after reaction to December 2016 was a drop of 5% (Trump's election win playing its part) followed by a 3.4% rally.

Data Forthcoming Releases

v Data Forthcoming Release

 

 

 

 

 

Time

Country

Today's Events

Forecast

Previous

Actual

 

 

JPY

BOJ Policy Rate

0.1%

0.1%

 

 

Tentative

 

 

Tentative

JPY

Monetary Policy Statement

 

 

 

 

Tentative

JPY

BOJ Press Conference

 

 

 

 

12:30pm

CHF

Libor Rate

-0.75%

-0.75%

 

 

12:30pm

CHF

SNB Monetary Policy Assessment

 

 

 

 

4:00pm

GBP

MPC Official Bank Rate Votes

0-0-9

0-0-9

 

 

4:00pm

GBP

Monetary Policy Summary

 

 

 

 

4:00pm

GBP

Official Bank Rate

0.25%

0.25%

 

 

4:30pm

USD

Building Permits

1.26M

1.29M

 

 

4:30pm

USD

Philly Fed Manufacturing Index

30.2

43.3

 

 

4:30pm

USD

Unemployment Claims

245K

243K

 

 

 

 

 

 

 

 

Courtesy: http://kalotipm.com.sg/kaloti-market-report-16th-march-2017

Precious Metals

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news