Kaloti Precious Metals-Morning Market Report-Wednesday, January 11, 2017

Market Daily & Weekly

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

Fundamentals and News

Commodities Gain as Dollar, U.S. Stocks Fluctuate

• U.S. stocks fluctuated with the dollar as post-election asset moves stalled a day before Donald Trump is slated to hold a press conference that could elucidate his policy preferences. Commodities advanced amid rising producer prices in China.

• The Dow Jones Industrial Average hovered near 19,900, while the S&P 500 Index traded 0.4 percent below an all-time high. Treasuries edged lower, while the dollar nudged higher as Federal Reserve officials signaled Monday they continue to favor gradual rate hikes as the economy strengthens. Gold climbed to a five-week high, while copper surged with iron ore after China’s producer price index jumped.

• Caution crept into financial markets as the euphoria over Trump’s perceived pro-growth policies faded with Congress holding cabinet confirmation hearings and the president-elect preparing to face the media for the first time since July.

• “Traders are wary ahead of a media briefing,” said Naeem Aslam, chief market analyst in London at Think Markets U.K. Ltd. They “want to play safe and the yellow metal provides them this safety.”

• The S&P 500 fluctuated near 2,270 at 9:31 a.m. in New York, after Friday closing at a record. The Dow climbed last week within 0.37 point of 20,000 before fading.

• The Europe Stoxx 600 Index edged higher, while the FTSE 100 Index headed for an 11th straight gain in its longest rally since 2011. The index has closed at all-time highs for eight straight days; a ninth would be a record.
• Mining shares on the Stoxx Europe 600 Index gained 2.8 percent to the highest level since Dec. 13.
• The dollar climbed 0.1 percent against the yen and was almost flat against the euro.

• The pound touched its lowest level since Oct. 25 before rebounding to trade little changed at 1.2166 per dollar.

• West Texas Intermediate crude added 0.3 percent at $52.11 a barrel after sinking 3.8 percent last session as an increase in U.S. drilling offset signs that OPEC members are sticking to planned output cuts.

• Gold futures were little changed near a five-week high at $1,185 an ounce, with demand forecast to rise ahead of Chinese New Year.

• Zinc rose 3.4 percent to a three-week high of $2756.50 a metric ton on signs that demand for the metal used to produce galvanized steel would increase in China.

Data Forthcoming Releases

Courtesy: http://kalotipm.com.sg/kaloti-market-report-11th-january-2017