Gold prices rose by $10/ ounce on Wednesday, largely on account of a weaker dollar (particularly against the yen). There were modest gains in the rest of the group. Gold prices retained their firmer tone in the wake of Fed minutes as well, something of a surprise. Although the minutes confirmed market expectations that a rate increase was in store for December, investors were nonetheless surprised to see that the Fed’s view was not unanimous. Some on the committee warned that subpar inflation readings was making the case against further aggressive rate increases, while others countered that both the economy and inflation would evolve in such a way so as to justify additional firming. The fact that there was a degree of dissent likely tipped the balance to the long side as far as the gold market was concerned.
|Precious Metals Daily Report --- November 23 2017.pdf||463.42 KB|