Gold futures are holding just under $1,200 on Friday as a slightly stronger dollar and general holiday malaise are keeping the market quiet.
Gold for February delivery on the Comex division of the New York Mercantile Exchange was last up $2.00 at $1,196.80 per ounce. Trade has ranged from $1,193.20 to $1,201.50.
“Gold prices are currently capped by a stronger dollar and ongoing weak oil prices. Equity market gains further reduce the appeal of alternative assets like gold,” HSBC’s James Steel said. “Despite this, gold keeps challenging $1,200. The outlook is not wholly negative for bullion.”
In the physical markets, Switzerland exported 232.2 tonnes of gold in November, according to official Swiss Customs Administration statistics, an increase of 16 percent on the October total and the highest volume this year.
Elsewhere, India’s imports of gold surged in November to 145-150 tonnes, according to the latest statistics from the Indian Ministry of Commerce and Industry. The ministry valued gold imports last month at $5.6 billion, which at the average spot price of $1,177 per ounce equates to around 148 tonnes.
Imports hit 150 tonnes in October after 120-130 tonnes in September, 71 tonnes in August and 48 tonnes in July, when importers stepped up their efforts to meet the typical increase in demand from the Hindu festival season.
“Swiss customs data show strong gold exports to India in November,” Steel said. “Although confusion over import regulations and softer seasonal demand may reduce India’s demand this month, it is safe to say that declines from these levels are likely to elicit greater emerging market purchases.”
“This should help establish a floor on gold prices but not necessarily promote a rally. Stronger investment-led participation in the market is needed for that, we believe,” he added.
Trading today is expected to remain subdued however, in light of few macroeconomic announcements and as the year-end holiday season approaches.
“There comes a time in December when it becomes clear that the time for Christmas holidays is upon us,” Marex Spectron’s David Govett said earlier this week.
“Do not buy strength or sell weakness in this market at the moment. When it looks good, sell it, when it looks awful, buy it, otherwise leave it alone,” he added.
In data today, Japanese all industries activity disappointed at -0.1 percent. GfK German consumer sentiment was close to expectations at 9, while the country’s PPI beat expectations at 0.0 percent and the eurozone’s current account fell short at $20.5 billion.
In the wider-markets, the dollar is holding near a two-year high at 1.2279 against the euro, while Germany’s DAX and France’s CAC-40 were down 0.31 percent and 0.13 percent respectively.
Light sweet crude (WTI) oil futures were up $1.07 at $55.43 per barrel, nevertheless, crude is still just about $2 above a five-and-a-half year low.
As for other precious metals, Comex silver for March delivery were down 1.4 cents at $15.920 per ounce. Trade has ranged from $15.830 to $16.00.
Platinum for January delivery on the Nymex was up $1.20 at $1,198.30 per ounce, while the most-actively traded palladium contract was at $793.25 an ounce, up $1.10.
(Additional reporting by Ian Walker)
The post Comex muted in pre-holiday trade appeared first on The Bullion Desk.
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