Skip to main content

Futures & Commodities | Gold | Gold Price Report on Monday 17, June 2019 | Gold | Gold slips as rate cut expectations ease ahead of Fed meet

3 minutes




RT: Gold bars with hand 170512
Gold prices slipped further on Monday after sliding from a more-than-14-month high the previous session following upbeat U.S. economic data that dampened expectations the Federal Reserve would ease interest rates.
Spot gold edged 0.1% lower to $1,340.20 per ounce. Prices had surged to $1,358.04 on Friday, its highest since April 11, 2018.
U.S. gold futures slipped 0.1% to $1,343.70 per ounce.
“We had some very good retail sales and some very good industrial production figures come out on Friday,” said Jeffrey Christian, managing partner of CPM Group. “What we are seeing today is some pullback from excessive bullishness last week, because of expectations the Fed might lower interest rates.”
Above-forecast U.S. industrial output data and upbeat retail sales and consumer confidence readings on Friday pushed back futures markets expectations of any quick rate cut by the U.S. Federal Reserve.
Expectations of a rate cut at the Fed’s June 18-19 meeting fell to 21.7% from 28.3% on Thursday after the retail data, according to CME Group’s FedWatch tool. But bets for monetary easing at the July meeting remained at 85%.
By Monday, expectations for easing had edged lower.
Investors also look towards a G20 summit later this month where U.S. President Donald Trump will likely meet Chinese President Xi Jinping amid their long-drawn trade spat that has ruffled markets since its conception last year.
Concerns persist that the bitter trade war could drive world economies into recession.
“There are so many moving pieces I think a lot of people are looking at both the FOMC (Federal Open Market Committee), and the G20 and saying ‘I really don’t know how this is going to shape out’,” CPM Group’s Christian said.
Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.6% to 764.10 tonnes on Friday from 759.70 tonnes on Thursday.
“Safe-haven flows in gold continue to inflate the extreme overbought positioning in gold with more than $4.4 billion entering the gold market over the week. Most of this flow is due to short covering,” Societe Generale said in a note.
Spot gold may retest a support at $1,337 per ounce, a break below which could cause a loss to $1,324, according to Reuters technical analyst Wang Tao.
Other precious metals traded lower as well, with spot silver down 0.3% at $14.83 per ounce, and palladium declining 0.4% to $1,459.23.
Platinum dipped to its lowest since May 31, down 0.7% at $793.57 per ounce.

Source: CNBC

Comments

Popular posts from this blog

Analysis | The Cybersecurity 202: How the shutdown could make it harder for the government to retain cybersecurity talent

By Joseph Marks 13-17 minutes THE KEY President Trump delivers an address about border security amid a partial government shutdown on Jan. 8. (Carolyn Kaster/AP) The partial government shutdown that's now in its 18th day is putting key cyber policy priorities on hold and leaving vital operations to a bare bones staff. But the far greater long-term danger may be the blow to government cyber defenders' morale, former officials warn. With the prospect of better pay and greater job security in the private sector, more government cyber operators are likely to decamp to industry, those former officials tell me, and the smartest cybersecurity graduates will look to industry rather than government to hone their skills. That’s especially dangerous, they say, considering the government’s struggle to recruit and retain skilled workers amid a nationwide shortage of cybersecurity talent. About 20 percent of staffers are furloughed at the De

Democrats call for investigation into Trump’s iPhone use after a report that China is listening:Analysis | The Daily 202 I The Washington Post.

washingtonpost.com By James Hohmann _________________________________________________________________________________ President Trump and Chinese President Xi Jinping visit the Great Hall of the People in Beijing last November. (Andrew Harnik/AP) With Breanne Deppisch and Joanie Greve THE BIG IDEA: If Democrats win the House in two weeks, it’s a safe bet that one of the oversight hearings they schedule for early next year would focus on President Trump’s use of unsecured cellphones. The matter would not likely be pursued with anywhere near the gusto that congressional Republicans investigated Hillary Clinton’s use of a private email server during her time as secretary of state. Leaders of the minority party have higher priorities . But Democratic lawmakers made clear Thursday morning that they will not ignore a New York Times report that Trump has refused to stop using iPhones in the White House, despite repeated warnings from U.S. intelligence offici

RTTNews: Morning Market Briefing.-Weekly Jobless Claims Edge Down To 444,000. May 13th 2010

Morning Market Briefing Thu May 13 09:01 2010   Commentary May 13, 2010 Stocks Poised For Lackluster Open Amid Mixed Market Sentiment - U.S. Commentary Stocks are on pace for a mixed start to Thursday's session, as a mostly upbeat jobs report continued to relieve the markets while some consternation regarding the European debt crisis remained on traders' minds. The major index futures are little changed, with the Dow futures down by 4 points. Full Article Economic News May 13, 2010 Weekly Jobless Claims Edge Down To 444,000 First-time claims for unemployment benefits showed another modest decrease in the week ended May 8th, according to a report released by the Labor Department on Thursday, although the number of claims exceeded estimates due to an upward revision to the previous week's data. Full Article May 13, 2010 Malaysia's Decade High Growth Triggers Policy Tightening Malaysia's economy grew at the fastest pace in a decade in