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United Market Commentary

Wednesday, February 22, 2017

Market Commentary - February 22, 2017

Gold did a whole lot of nothing today, with the market doing the usual recovery from the early day decline to climb back to a touch better than unchanged by day's end. The FOMC minutes indicated a willingness to raise interest sooner rather than later, but set no timetable. Given that, the U.S. dollar came off on the news and allowed the gold market to recover by the close.

The market opened at $1235 in the Far East and traded between and early high of $1237 and $1234. Europe trended higher for a second day, rising up to $1238 by their close in steady but quiet conditions.

New York began at $1237 and rose quickly to the day high of $1240 before falling on another day of a rallying U.S. dollar, eventually falling to $1232 (day low) by midday in front of the minutes release. The Fed said nothing new except that inflation pressures are "rising" - and noting downside risks. However, these were discussed on February 1st, prior to the last few positive economic releases. Here the bargain hunters came in "buying the dip" once again, lifting gold back to $1239 by late afternoon, finally closing at $1238.


8:30am Jobless Claims - cons. 244,000

Michael Mikolay

Tuesday, February 21, 2017

Market Commentary - February 21, 2017

Once again, gold regained ground after early losses. Under pressure from the implied upcoming interest rate hike, the "buy the dip" mentality came through again, lifting gold during New York hours to recover back to unchanged.

Selling came in early during Asian hours, with gold falling to $1232 from a $1237 open. Some light bargain hunting lifted gold back to $1234 but reversed the gain by their close. London was negative from the start, selling quickly off on a stronger dollar and the concept of even higher U.S. rates, falling to $1227. Late afternoon buying lifted gold to $1231, before easing off to finish their day at $1229.

New York began at $1230 and initially moved lower as equities opened higher once again, with gold falling to the day low of $1226. The buying entered once again, with gold rising rapidly to $1234 by fixing time. Another round of buying, seemingly technical in nature, lifted gold to the day high of $1238.50 by midday. Light profit taking from day traders pushed gold lower, slipping back to close at $1235.

Tomorrow brings:

10:00am Existing Home Sales for January - cons. 5.580 M units (annualized)

Michael Mikolay

Friday, February 17, 2017

Market Commentary - February 17. 2017

Gold closed modestly lower in front of a long U.S. holiday weekend in somewhat subdued conditions on some profit taking after yet another propitious week of trading. Gold did seem to run out of a little steam in Friday's trading. Expect nothing to happen on Monday and perhaps a retest of the lower end of the recent trading range during Tuesday's hours.

After a $1238.50 open in Sydney (day high), the Hong Kong trading hours were quiet, with gold holding to a narrow range of $1237 to $1238 before slipping at the close to finish at $1236. London saw buying from the start, with a softening dollar prompting some short covering in front the weekend. Gold rose to the day high of $1243 before falling back to close at $1241.50.

New York began with a retest of the day high of $1243 and traded ?choppily? between $1240 and $1242 until late morning. Profit taking was evident as the dollar recouped earlier losses and gold began a slide through the $1240 level, falling to $1237. A mild attempt at a rally in early afternoon went nowhere and another round of longs taking profit drove the market into an afternoon decline, falling to the low of $1235 twice in the last hour of trading, closing just off the lows at $1235.50.

Michael Mikolay

Thursday, February 16, 2017

Market Commentary - February 16, 2017

Yet another day of "higher and steady" trading summarized gold and silver trading activities today as a modest correction in the dollar and a pause in the equity markets' recent run-up all helped to lift the metals higher once again.

Asia opened at $1233 (day low) and moved above $1235 on the dollar weakness early in the Hong Kong session. After a brief retest of the lows the market rebounded to close back at $1235. London was quiet but played to a higher range, moving between $1235 and $1239 during their hours.

New York began at $1237.50 and after a brief downturn to $1236, rose to $1240 by fixing time on light buying due to soft equity openings. A late morning rise to the high of $1242 was quickly rebuffed as gold fell back below $1240 by midday. A quiet and narrow range of $1237.50 to barely $1240 covered the remainder of the afternoon, closing at $1238.50.

The Market Closes the Week with:

10:00am Leading Economic Indicators for January - cons. +0.4%

Michael Mikolay

Wednesday, February 15, 2017

Market Commentary - February 15, 2017

Gold finished higher today after following its usual pattern of late; overcoming an early decline after economic data indicated an almost certain interest rate hike in March to close slightly above unchanged for the session. After a corresponding rise in the U.S. dollar on the news, the greenback declined in afternoon trading, providing some support to the "bulls" who succeeded once again in making "lemonade out of lemons".

Sydney began at $1228 and "fell" into the Hong Kong opening, hugging the $1225 level for almost the entire Far East trading day. London fared no better, holding to a narrow range of $1225 to $1227.

New York opened at $1225 and fell on the CPI release of a lofty +0.6% (cons. +0.3%) and strong Retail sales of +0.4% vs. cons. of +0.1%. Quickly touching its nadir of $1216 (a two week low) within minutes, gold began a recovery just as quickly, rising back to the $1225 level by fixing time despite another strong opening (and day) in the equity markets. After a brief sideways pause, gold resumed its upward climb through midday, eventually rising above the $1230 level in early afternoon. Quiet but steady for the remainder of the day, gold remained underpinned by profit taking in the dollar, with the market rising slightly in the last two hours of trading to close at $1233.

On the Docket Tomorrow:

8:30am Jobless Claims - cons. 246,000

8:30am Housing Starts for January - cons. 1.232 M units // Permits - cons. 1.233 M units (annualized)

8:30am Philadelphia Fed Business Outlook Survey for February - cons. 19.3

Michael Mikolay

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Precious Metal Spot Prices

  Bid Change
Gold $1,249.07 +$11.60/+0.94%
Silver $18.16 +$0.02/+0.11%
Platinum $1,007.00 +$6.00/+0.60%
Palladium $770.00 +$5.00/+0.65%
Gold 2017-02-23 2:05 PM
Bid/Ask $1,249.07/$1,249.22
High/Low $1,251.20/$1,235.70
Change +$11.60/+0.94%
Silver 2017-02-23 2:05 PM
Bid/Ask $18.16/$18.16
High/Low $18.25/$17.91
Change +$0.02/+0.11%
Platinum 2017-02-23 2:05 PM
Bid/Ask $1,007.00/$1,013.00
High/Low $1,022.25/$991.75
Change +$6.00/+0.60%
Palladium 2017-02-23 2:05 PM
Bid/Ask $770.00/$779.00
High/Low $787.00/$760.00
Change +$5.00/+0.65%

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Prices shown are for reference only. Please contact our trading desk for accurate, up-to-the-minute pricing.