News Commodity Market News

Gold slips below $1310/oz on stronger US dollar

10-Jan-2018

COMEX gold trades weaker below $1310/oz after a 0.5% decline yesterday. Gold hit a 3 ½ month high last week but has corrected amid concurrent rise in US dollar, equity market and bond yields. We expect to see some more correction in the near term

The US dollar index hit 1-week on sharp rise on bond yields. Bank of Japan altered its bond purchase program triggering a rally in global bond yields. The US 10-year yield rose to 2.55%, the highest since March 2017.

US DJIA hit fresh record high level Tuesday amid general optimism about US and major global economies. Optimism about US economy remained unfazed despite weaker US economic data. Job openings, a measure of labor demand, fell by 46,000 to a seasonally adjusted 5.88 million, the lowest level since May.

ETF outflows also show weaker investor interest. Gold holdings with SPDR ETF fell by 2.95 tonnes to 831.9 tonnes, lowest level since Sept.2017.

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