Kaloti Precious Metals-Morning Market Report-Tuesday, November 29, 2016

Gold Posts Biggest Advance in Four Weeks as Dollar Declines

Market Daily & Weekly

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

Fundamentals and News

Gold Posts Biggest Advance in Four Weeks as Dollar Declines

Gold futures posted the biggest gain in almost four weeks as the dollar fell and investors bet the recent selloff was excessive. Palladium reached a 17-month high.

A Bloomberg gauge of the dollar declined from the highest in a decade as a retreat in Treasury yields sapped the currency’s appeal. Weakness in the dollar tends to help commodities priced in the currency. The metal’s 14-day relative-strength index was below 30 in the previous six sessions, signaling to some traders and analysts that gold was oversold.

Gold has slumped more than 6 percent this month as U.S. President-electDonald Trump’s pledge to increase infrastructure spending boosts speculationthat the Federal Reserve will raise interest rates in December, curbing demand for assets that don’t provide yield. A U.S. employment report due Dec. 2 will provide more clues on the outlook for rates, after wage gains accelerated and jobs continued to rise at a steady pace in October.

 “There’s some rotation into gold as the dollar is down,” Jason Schenker, president of Prestige Economics LLC in Austin, Texas, said in a telephone interview. “What’s going to be really important for gold prices is the U.S. jobs numbers on Friday.”

Gold futures for February delivery climbed 1.1 percent to $1,193.80 an ounce at 1:42 p.m. on the Comex in New York. That marks the biggest gain for a most-active contract since Nov. 2. The metal fell below $1,200 last week for the first time since February.

News sentiment about Gold Resource Corp. improved to most positive from negative in the past day.

Sentiment, measured by using a proprietary Bloomberg algorithm to evaluate recent news stories, rose to 0.83 from -0.32 on a scale where -1 is most negative and 1 is most positive.

Gold Resource shares rose 3.3 percent in the last session, compared with the 0.5 percent decline in the Standard & Poor's 500 Index. Trading volume was 23 percent below the daily average of 147,093. The stock is up 1.1 percent in the past week.

Data Forthcoming Releases

Courtesy: http://kalotipm.com.sg/kaloti-market-report-29th-november-2016

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