Commodities: Gold recovers from 3 day drop as greenback weakens

Digital Look WebFG News | 19 Oct, 2017 18:02 | | |

Gold bars

Thursday saw the US dollar fall for the second day in a week, with the dollar index down 0.24% to 93.140 after 10-year Treasury yields dipped 2 basis points as investors returned to the safety of bonds.

This helped gold recover from a three day slump with the spot contract up 0.53% to $1,287/oz and the December contract 0.5% firmer to $1,285/oz.

"There's technical reasons why we've stabilised, stocks have come off, (but overall) people are not finding much value investing in gold at the moment," said Fawad Razaqzada, an analyst at FOREX.com.

"The lack of safe-haven demand combined with expectations of higher interest rates is weighing. If gold remains below $1,300, there's a risk of a deeper correction in the coming days or weeks."

Other presious metals saw silver rise 1.38% to $17.24/oz. by 1720 BST, platinum also rallied, up 0.47% to $925/oz. while palladium traded flat at $961/oz..

Palladium rallied to a 16-year high this week and may spike further on rising auto sales in China and as consumers replace vehicles damaged by hurricanes in the US.

Base metals saw copper fall 0.3% to $6,987/tonne as market participants weighed up the latest data out of China showing an increase in industrial production to 6.6% year on year.

Energy markets saw oil prices drop on Thursday with West Texas Intermediate (WTI) for January delivery fall 1.27% to $51.82/barrel and benchmark brent crude drop 1.41% to $57.02/barrel.

"There seems to be a macro selloff across the board with energy stocks also coming down," said John Kilduff, partner at Again Capital LLC.

Ongoing tension in the Middle East has kept a bid under the market, however, as reduced flows from the Iraqi Kurdish pipeline through Turkey have raised worries about supply.

In the grains market, soybeans futures for November were 0.45% firmer to $9.88/bushel, staying inside the previous day's trading range. Mostly dry conditions in the U.S. Midwest this week should promote harvest progress, although weekend rains may slow fieldwork. Beneficial rains expected next week in dry areas of Brazil's soy belt.

December Corn was modestly higher by 0.23% to $3.5/bushel, with rallies capped by the ongoing harvest of a large U.S. crop amid mostly dry weather in the Midwest this week.

More news

19:07 Europe close: Stocks slip going into the weekend

Stocks reversed early gains as investors opted to play it safe going into the weekend and the euro edged a tad higher on the back of the political gyrations on Capitol Hill.

18:52 Europe open: Stocks start slightly higher, analysts wary

Stocks have started the morning trading slightly higher, tracking overnight gains on Wall Street but analysts are worried about buying into Thursday's bounce.

18:41 London close: Stocks finish week on down note

London's top flight index slipped on Friday, but managed to finish well-off its lows of the session despite renewed Brexit angst as the pound gave back early gains.

16:34 Kingfisher gets RBC upgrade as 'reasons to be cheerful' in France

DIY retailer Kingfisher has more "reasons to be cheerful" thanks to an improving French outlook, analysts at RBC Capital Markets said on Friday, while clothes seller Supergroup remains "compelling" but its shares have gained a lot in recent weeks.

16:33 NAV on the rise as Alpha Real Estate Trust turns focus to build-to-rent market

Real estate investment group Alpha Real Trust saw its net asset value (NAV) rise in its first half of trading as it moved to make further investments in build-to-rent projects.

16:33 Pacific Industrial & Logistics completes sale of Bedford asset

Industrial and logistics-focussed real estate investment trust Pacific Industrial & Logistics has completed the sale of an asset located at Hammond Road, Bedford, for a total consideration of £5.8m, it announced on Friday.

16:27 DP Poland cuts ribbon on 50th Polish Domino's store

DP Poland, which holds the exclusive master franchise for the Domino’s Pizza brand in Poland, celebrated the opening of its 50th location in the country on Friday.

16:24 Mercia Technologies makes new investment into Aston EyeTech

National investment group Mercia Technologies has made a new direct investment into Aston EyeTech - a spinout from Aston University, Birmingham - which has developed a range of proprietary hardware and software products in ocular care, it announced on Friday.

16:19 SimiGon receives final approval for $2m Israeli Air Force order

Modelling, simulation and training solutions provider SimiGon has now received final regulatory approval for a $2m purchase order received from the Israeli Air Force, initially announced on 20 June 2016, it confirmed on Friday.

16:15 Agriterra losses grow after 'subdued' interest in corn products

Agricultural investment group Agriterra saw losses widen in the first half of its trading year as subdued demand for its maize flour products slashed revenues by more than a third.