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BULLION LATEST 13/10: Gold price extends gains on weaker dollar

The gold price extended its rally during Asian morning trading on Friday October 13, buoyed by a weaker dollar, with investors awaiting key US data later today for hints on the possibility of another interest rate rise this year.

October 13, 2017
By Generic people page

The spot gold price was recently quoted at $1296.35-1296.65 per oz, up by $2.25 as of 04:38 BST today. Trade has ranged from $1293.15-1296.75 so far today.

  • The dollar index was 0.12% lower at 92.99 as of 04:50 BST, this after reaching a more than two-week low of 92.8 on Thursday after minutes from the US Federal Open Market Committee’s (FOMC) September meeting suggested the central bank was concerned about low inflation.
  • However, data released later on Thursday showed US producer prices rose in September and weekly unemployment claims were down, suggesting signs of underlying strength in both wholesale inflation and the labour market, potentially leaving the Fed on track to raise rates in December.
  • Investors will now be looking ahead to the release of further US data today for hints as to whether the market conditions are right for the Fed to raise rates again this year.
  • Meanwhile, continuing geopolitical uncertainty has also lent support to gold prices.
  • Investors’ concerns over escalating tensions between the USA and North Korea remain high after news emerged on October 9 that North Korea may be about to test a new long-range missile capable of reaching the west coast of the USA, which continued to buoy haven demand for the yellow metal.
  • “The lack of progress on [US] President Trump’s tax cuts has also fuelled the political uncertainty, which has supported gold prices,” ANZ noted.

Silver, PGMs

  • In the other precious metals, the spot silver price was up by $0.035 to $17.260-17.280 per oz.
  • Platinum was $2 higher at $935-940 per oz, while palladium increased $11 to $982-$987 per oz.
  • On the Shanghai Futures Exchange, gold for December delivery was recently at 277.05 yuan ($42.1) per gram, and the December silver was quoted at 3,906 yuan per kg.

Currency moves and data releases

  • The dollar index dipped 0.12% to 92.99 as of 4:50 BST today.
  • In other commodities, the Brent crude oil spot price was up 0.14% to $56.47 per barrel, and the Texas light sweet crude oil spot price increased 0.22% to $50.85.
  • In equities, the Shanghai Composite was up 0.14% to 3,390.89.
  • In data today, US consumer prices for September, retail sales and preliminary University of Michigan consumer sentiment are due.
  • In addition, FOMC members Charles Evans and Robert Kaplan are speaking.