Tuesday, November 15, 2016

Equityworld futures : Falling Gold Prices Depressed Strengthening of the US dollar and US Treasury Results

Equityworld futures-Gold prices fell in late trading Tuesday morning (15/11), had fallen more than one percent to the lowest level in 5.5 months, pressured strengthening of the dollar and Treasury yields on expectations that President-elect Donald Trump would increase US spending.

equityworld futures

LLG Spot gold prices fell 0.58 percent at $ 1,218.63 per ounce. The metal fell 1 percent to $ 1,212.26 an ounce earlier in the session, the lowest since June 3.

US gold futures prices fell 0.48 percent at $ 1,218.40 per ounce.

The US dollar rose to a 11-month high against a basket of major currencies, while the yield on 10-year US Treasury rose to the highest since January at 2.2 percent.

Read : Equityworld Futures : US stocks Technology Sector Financial Balance, Wall Street Closed Mixed

The US dollar strengthened on expectations of fiscal policy and Trump will increase spending because of inflation, which could cause US interest rates higher.

A sell-off in global commodity and soaring bond yields has made the precious metal slipped nearly 3 percent in the previous session.

"People seem to have canceled Trump-risk and now they are talking about 'Trumpflation'," said Jeffrey Halley, senior market analyst at Oanda, as reported by CNBC.

Fed Vice Chairman Stanley Fischer said on Friday that US economic growth prospects appear strong enough for the Fed to continue with a gradual increase in interest rates.

The market is also betting on the Federal Reserve to raise interest rates more quickly. Metal is very sensitive to the rise in US interest rates, which can raise the opportunity cost of holding gold.

However, uncertainty about the US economic outlook and also about international risk events such as the presidential election Austria and Italy next month's constitutional referendum could have an impact on the broader market and the impact on the gold trade in the medium term.

SPDR Gold Trust, the largest gold holdings in the world that is backed exchange-traded fund, said its holdings fell 0.76 percent to 934.56 tonnes on Friday.

Silver rose 0.14 percent to $ 17.36 per ounce. Earlier in the session, touching the worst since June 9 at $ 17.00.

Platinum was up 0.7 percent at $ 677.40 while palladium was unchanged at $ 672.22 per ounce.

Equity Analyst Research Center estimates that the price of gold at the next trade weak potential to move with the stronger US dollar. Prices are expected to move in the range of $ 1,217- $ 1.215 Support, whereas if the price rises will move in the range of $ 1,221- $ 1.223 Resistance.


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