Gold price recovers but remains below $1,290/oz

September 29, 2017

London (Sept 29)  The spot gold price has recovered slightly after the dollar’s recent run of strength came to a halt, but remained below $1,290 per oz during Asian morning trading on Friday September 29 on a lack of upside catalysts.

The spot gold price was quoted at $1,284.35-1,284.75 per oz as of 04:56 BST, down $2.65 on the previous session’s close. Trade has ranged from $1,283.93-1,287.90 so far today. The price had dipped as low as $1,277.85 on Thursday, the lowest since August 25.

•The lack of further details on recent tax reform plans proposed by US president Donald Trump has put a lid on the US dollar’s recent climb. On Wednesday, Trump had announced a tax reform plan which included cutting corporate tax to 20% from 35% and also tax cuts for individuals.

•The increased possibility of a US rate increase at the end of the year is expected to continue providing support to the dollar, some market observers noted.

•“Going forward one might expect further media examination of the pending timing gap between the [US Federal Reserve] raising rates and the implementation of Trump’s proposed tax reform policies, leading to some market caution,” John Browning, md at Bands Financial, said.

Silver, PGMs

•In the other precious metals, the spot silver price fell $0.02 to $16.82-16.84 per oz. Platinum increased $2 to $920-925 per oz while palladium was up $10 at $936-941 per oz.

•On the Shanghai Futures Exchange, gold for December delivery was recently at 278.50 yuan ($41.80) per gram, and the December silver was at 3,873 yuan per kg.


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