Gold: Gold Firm Despite Rising US Rate Hike Expectations
Movement in the price of gold remained fairly muted this week as a lack of directional drivers kept the precious metal hemmed in. The Fed is widely expected to raise rates at its upcoming meeting in December which should keep upside constrained, while simmering geopolitical tensions in the Middle East and between the US and North Korea, have provided a floor of support for the safe haven.
A strong US CPI reading this week, which saw core inflation rising to 1.8% in October from 1.7% prior, has kept rate hike expectations intact and saw gold reversing earlier gains but still positive on the week.
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Gold has been stagnant around the 1278.40 level for the last four weeks and remains within the bullish channel which has framed price action since the November 2016 lows. Key support is sitting at the 1260.58 where there is a confluence between the October low and rising bullish channel support.
Silver: Price Remains Stagnant on Lack Of Directional Drivers
Silver prices remained positive this week as a weaker US Dollar kept precious metals and industrial metals alike, supported. Price action continues to be driven by opposing themes of rising US rate hike expectations and geopolitical tensions. Although tensions between the US and North Korea have been out of the spotlight recently they remain below the surface they remain a key market focus and have the potential to create sporadic volatility.
Read more: https://www.orbex.com/blog/2017/11/weekly-commodities-wrap-china-data-weakness-weighing-on-copper