Kaloti Precious Metals-Morning Market Report- Tuesday, May 30, 2017

Market Daily & Weekly

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

Fundamentals and News

Gold near May Highs as Investors Weigh U.K. Election, U.S. Rates

Markets closed in China, U.K. and U.S. for holidays

Gold steady near its May highs as growing uncertainty over U.K. election next month counters impending interest rate increase in U.S.

Bullion for immediate delivery flat at $1,267.04/oz at 10:32am in London, after posting third weekly gain in period through May 26: Bloomberg generic pricing

Metal touched $1,269.55 on Friday, highest since May 1

A gauge of the dollar steady after +0.1% last week

U.K. election on June 8 getting tighter, with poll showing Theresa May’s Conservative Party leading main opposition Labour Party by just 5 points

“Increasing political uncertainty continues to invoke safe haven buying with polls showing Prime Minister May losing ground to her main opponent ahead of the next month’s election,” ANZ analysts write in May 29 note.

North Korea Fires Ballistic Missile, Drawing Ire of Neighbors

Federal Reserve Bank of San Francisco President John Williams sees inflation approaching 2% within year or so.

Stronger performance of economy “will help inflation move up to 2%”; some effects holding inflation down are “transitory”

With economy at full employment, “we are in a good place”

If data comes in stronger or better than expected, “we’ll probably raise rates a little faster than that,” or if it disappoints, then Fed will raise rates “a little slower”

He says not many risks in the macro economy that keeps him up at night

He’s not worried about “hard landing” in China; leaders in China have been “realistic” about economy and realized for some time it won’t be growing as high as 10% as it did in past

Williams comments to reporters in Singapore before delivering speech at Symposium on Asian Banking and Finance

Silver +0.1% to $17.3745/oz

Platinum -0.2% to $958.70/oz

Palladium +0.6% to $796.67/oz         

Data Forthcoming Releases

Courtesy: http://kalotipm.com.sg/kaloti-market-report-30th-may-2017