Kaloti Precious Metals-Morning Market Report-Wednesday, November 09, 2016

Market Daily & Weekly

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

Fundamentals and News

Gold Holds Drop With Investors on Tenterhooks Before Vote Result

Gold held a two-day drop as investors counted down to the results of the U.S. presidential election, with opinion polls putting Hillary Clinton ahead of Donald Trump in the run-up to voting, hurting haven demand.

Bullion for immediate delivery traded at $1,274.13 an ounce at 7:01 a.m. in Singapore from $1,275.68 on Tuesday, according to Bloomberg generic pricing. After three weeks of gains, the precious metal slid 2.3 percent in the past two days on speculation that the odds of a Clinton win have improved.

Bullion has swung in recent weeks as investors tracked the campaign, which has dominated sentiment even as the Federal Reserve signals that it’s set to raise interest rates. While a win for the Republican is largely seen as bullish for bullion because his promises to renegotiate trade deals and curb immigration may stoke instability, a Democrat victory is seen as less turbulent. Goldman Sachs Group Inc. this week said a Clinton win was more likely, and reaffirmed its forecast for lower gold prices over 12 months.

“Gold is going to make a much larger move as the night progresses with the results coming in, especially after polling stations close,” said Phil Streible, a senior market strategist at RJO Futures in Chicago. “And then 24 hours from now everyone is going to ask: ‘Hey, is the Fed going to raise rates in December?’ and then we’ll proceed forward with life.”

Gold slipped as opinion polls put Hillary Clinton ahead of Donald Trump before U.S. voters cast their ballots in the presidential election.

Bullion has swung in recent weeks as investors tracked the U.S. campaign. A win for Trump is largely seen as bullish for gold because his promises to renegotiate trade deals and curb immigration may introduce geopolitical instability, boosting demand for haven assets. Gold gained in recent weeks as polls tightened and investors bet the Federal Reserve would move slowly on raising interest rates.

Data Forthcoming Releases

Courtesy: http://kalotipm.com.sg/kaloti-market-report-9th-november-2016