Gold prices inched higher during Asian morning trading on Tuesday November 21, staging a minor recovery after a steep fall overnight.
The spot gold price was quoted at $1280.15-1280.45 per oz, up by $1.00 as of 11:58am Shanghai time. Trade has ranged from $1278.05-1280.50 so far today.
- Gold prices have staged a minor recovery from their precipitous overnight fall.
- The recovery came as the dollar eased somewhat.
- The dollar index was at 94.03 as of 12:21pm Shanghai time – the index had reached a high of 94.1 yesterday, its highest since November 14.
- “Gold plunged $17.00 overnight breaking the hearts of optimists as US yields rose slightly and the US dollar strengthened across the board. Gold fell from its overnight open at $1,294.00 to close at $1,277.00 in New York. Gold’s inverse relationship to the big dollar seems unbreakable at the moment and is set to continue this week at least, as the US moves into holiday mode,” Jeffrey Halley, senior market analyst at OANDA, said on Tuesday.
- “As the dust settles, gold finds itself almost precisely in the middle of its six-week trading range at $1,278.00 this morning, just below its 100-day moving average at $1,280.70. … It will likely take a material sell-off in the US dollar to give hope that gold can reclaim $1,300.00 an oz anytime soon,” Halley added.
- In the other precious metals, the spot silver price was up by $0.030 to $16.970-16.990 per oz.
- Platinum was $4 higher at $927-932 per oz, and palladium increased $6 to $991-$996 per oz.
- On the Shanghai Futures Exchange, gold for June delivery was recently at 279.90 yuan ($42.2) per gram, and the December silver was at 3,868 yuan per kg.
Currency moves and data releases
- The dollar index was little changed at 94.03 as of 12:21pm Shanghai time.
- In other commodities, the Brent crude oil spot price was up by 0.36% to $62.29 per barrel, and the Texas light sweet crude oil spot price increased by 0.27% to $56.48.
- In equities, the Shanghai Composite was up by 0.40% to 3,405.83.
- In data on Monday, China’s CB leading index was in line with expectations at 1.3%, while the print from the United States climbed 1.2% in October, following a 0.1% increase in September.
- The economic agenda is light today with mainly the United Kingdom’s public sector net borrowing, the Bank of England’s inflation report hearings and US existing home sales of note.