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Gold Down on US Elections Outlook & Lack of Physical Demand

November 8, 2016 at 21:55 by Vladimir Vyun

Gold futures slipped today as markets were betting on Hillary Clinton’s victory in the US presidential elections. This outlook was helping the US dollar, though not against all peers, (as well as the currencies of US trading partners) and increased chances for an interest rate hike from the Federal Reserve in December. Consequently, the precious metal suffered due to the stronger greenback and prospects for a Fed hike.

Another hit for the metal was the lack of physical demand from consumers and central bank. The World Gold Council reported that demand fell 10% in the third quarter of 2016. With that said, there is a possibility that the coming festive season in India and China may boost purchases of gold.

Futures for delivery of gold in December slid 0.28% to $1,275.8 per troy ounce as of 21:37 GMT on COMEX today.

Surprisingly, other precious metals demonstrated strong performance. Futures for silver climbed 1.01% to $18.34 per ounce. Spot price for platinum rose 0.3% to $1,002.9 per ounce, and palladium rallied as much as 1.64% to $663.25 per ounce.

If you have any questions and comments on the commodities today, use the form below to reply.

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