Kaloti Precious Metals-Morning Market Report-Friday, October 28, 2016

Market Daily & Weekly

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

Fundamentals and News

Gold Stuck in a Range as Traders Watch for Clues on U.S. Rates

Gold is trading in a narrow range as traders look for U.S. data to give further clues about the strength of the economy and likelihood of tighter monetary policy from the Federal Reserve.

Price swings for gold futures, measured by a gauge of 60-day volatility, are near an almost two-year low. The most-active gold futures contract has traded in a range of about $17 this week, compared with a $52 for all of September. The price of the metal has fallen 3.8 percent this month.

Gold has retreated after rallying in the first half as expectations increase that the Fed will raise borrowing costs by the end of the year. Fed funds futures show the odds of a hike in December climbed to 74 percent from 59 percent at the beginning of October. U.S. data on Thursday were mixed, with durable goods orders falling in September by the most in seven months while filings forjobless benefits declined last week.

The durable goods report “indicates weakness and a threat that the Fed may use this as an excuse not to increase the interest rate,” Naeem Aslam, chief market analyst at ThinkMarketsU.K. Ltd., said in a note. “In reality, we are trading in a very narrow range” in gold, he said. “We really need to break out of this range to make a new trend.”

Gold futures for December delivery gained 0.2 percent to settle at $1,269.50 an ounce at 1:47 p.m. on the Comex in New York.

Holdings in exchange-traded funds backed by bullion dropped 0.6 percent to 2,034.6 metric tons as of Wednesday.

China, the world’s biggest gold consumer, raised bullion imports from Hong Kong in September for the first time in four months as investors sought to diversify their assets on prospects for a weakening yuan.

In other precious metals:

Silver futures for December delivery gained on the Comex, whilepalladium fell and platinum climbed on the New York Mercantile Exchange.

Platinum ETF holdings slipped for the first time in four sessions, according to data compiled byBloomberg.

Data Forthcoming Releases

Courtesy: http://kalotipm.com.sg/kaloti-market-report-28th-october-2016