U.S. Dollar Recovers Ground

Cassie Bastien

8/3/2017 12:14:47 PM

Daily Gold & Silver Market Report – 08/03/2017

Although still treading near a 2 1/2-year low, the U.S. dollar recovered some losses Thursday as investors look toward numbers from U.S. jobs data. Reuters Saikat Chatterjee said, “Most of the U.S. currency's gains came against the commodity linked currencies such as the Australian dollar and its Canadian counterpart, a theme that has been consistent this week, as investors took profits after recent gains.” The dollar index rose about 0.2 percent to 93.02 against a basket of other major currencies. Michael Hewson, chief market analyst at CMC Markets, said, “Despite today's bounce and the heavy positions the dollar can go lower, with any signs of improvement in the eurozone economy likely to push euro/dollar above the 1.20 line.”

Gold Can’t Seem to Hold a Rally

The U.S. dollar rose from multi-month lows and investors saw signs of a strengthening U.S. economy, pressuring Gold prices. OCBC Analyst Barnabas Gan said, “There’s still ongoing optimism in the global market with the Dow Jones Industrial Average at record highs.” The Dow broke the 22,000 barrier for the first time in its 121-year history Wednesday. Gan said, “I think the global economic strength we’ve seen, especially from the U.S. numbers and the very strong equity prints [Wednesday] night, were much more dominant in influencing [Gold] prices than [the ongoing] geopolitical concerns.” Business Day Reporter Nithin Prasad made a valid point by saying the safe-haven appeal is typically hindered when the economy shows strength, turning investors toward riskier assets.

• Silver fell 0.2 percent to $16.52 per ounce after touching its highest since June 29 the previous session.
• Platinum was up 0.5 percent at $947.40 per ounce after rising to its highest since June 14.
• Palladium was 0.2 percent lower at $893.45/ per ounce, on track to break a nine-session gaining streak (BusinessDay.com).

Electric Car Revolution Shakes Up Metals Market

The revolution in electric vehicles, which could disrupt numerous industries from energy to infrastructure, is also creating ripples within the metals markets. Mining companies will also feel the benefits from this electric car movement. Bloomberg Reporters Mark Burton and Eddie Van Der Walt said, “The outlook for greener transportation got a boost this year as the U.K. joined France and Norway in saying it would ban fossil-fuel car sales in coming decades. That’s as Volvo AB announced plans to abandon the combustion engine and Tesla Inc. unveiled its latest, cheaper Model 3.” Simona Gambarini, a commodities economist at Capital Economics Ltd. in London, says this is a “complete game changer” and will show a “big impact” on metals.

At 1:14 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,270.80 Down  $4.20
• Silver, $16.71 Down $0.07
• Platinum, $964.90 Up $10.10
• Palladium, $888.60 Down $9.60

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