Gold Market Report 16th September 2015

Fundamentals and News*:

  • Thegold market has gone quiet before the Federal Reserve meeting.
  • Volume was about 47 percent below the 100-day average for this time of day, and Tuesdaysaw the lightesttrading all year, according to Comex data compiled by Bloomberg. Gold futures for December delivery slipped 0.5 percent to settle at $1,102.60 an ounce at 1:44 p.m. on the Comex in New York.
  • While traders see only a 28 percentchance that the Fed will raise interest rates after a two-day meeting that begins on Wednesday, investors may get an indication of the schedule for future increases. The probability of an increase climbs to 62 percent for December, based on futures data compiled by Bloomberg. Higher rates curb the allure of gold by making it less competitive to assets that pay a yield, like bonds.
  • “Traders and market participants seem to be frozen in some strange cryogenic world, while they wait for the Fed to bring them back to life,”David Govett, head of precious metals at broker Marex Spectron Group in London, said by e-mail. “I really don’t think we are going to see any major moves before the announcement.”
  • Market swings are also diminishing before the Fed’s meeting, with a measure of 15-day volatility falling to the lowest in almost a month on TuesdayOn Monday, spot prices traded within a range of $6.90, the smallest since July 14.
  • “Most of the markets are waiting for the Fed decision on interest rates,” Michael Smith, the president of T&K Futures & Options Inc. in Port St. Lucie, Florida, said in a telephone interview. “That uncertainty is keeping investors away from most of these markets, especially gold.”
  • Aggregate volume for Comex gold futures was estimated at 68,115 contracts on Tuesday, the smallest since Dec. 24 and less than half the average this year. Prices have fallen 6.9 percent in 2015.
    MitonOptimal Group, said by phone from Cape Town. “It’s been a tough few weeks for commodities traders, and I think there are a lot of guys out there with red paint all over their numbers, so it’s no surprise they prefer to err on the side of caution.”
  • Silver futures slipped on the Comex, while platinum, and palladium gained on the New York Mercantile Exchange

(*Source:Bloomberg)

Data Forthcoming Releases:

 

Time*CountryToday’s EventsForecastPreviouActual
4:30CADManufacturing Sales m/m1.1%1.2%
4:30USDCPI m/m0.0%0.1%
4:30USDCore CPI m/m0.1%0.1%

 

Resistance & Support Levels:

PeriodR3R2R1S1S2S3
Gold$   1,136.6 $   1,126.4 $   1,120.1 $   1,099.7 $   1,093.4 $   1,083.2
Silver$      15.21 $      14.96 $      14.81 $      14.30 $      14.15 $      13.89