Sunday , September 22 2019
Home / Commodity Blog / Gold Slumps on NFP, India’s Import Duty

Gold Slumps on NFP, India’s Import Duty

Summary:
Gold slumped today after the release of US nonfarm payrolls. Most other metals joined the decline, with the exception of palladium. US employers added 224,000 jobs in June versus the consensus forecast of 162,000. The report made the US dollar surge and speculators trim bets on interest rate cuts from the Federal Reserve. The CME FedWatch page was showing that markets no longer price in a 50 basis point cut this month and chances for at least some cut were no longer 100%. Yet currently, it looks like bets have returned to about where they were before the report, with a 100% chance for a cut by at least 25 points and about a 6% chance of a 50 point cut. Another negative factor for the market was the increase of import duties on gold and other precious metals by India today. That was a total

Topics:
Vladimir Vyun considers the following as important: , , , ,

This could be interesting, too:

Andrew Moran writes Gold Poised for Weekly Gain on Fed Easing, Middle East Tensions

Mike Shedlock writes Since 2000 Wage Growth Has Barely Grown, If You Even Got That Much

Mike Shedlock writes QE Debate: Powell’s Comment On “Resuming Balance Sheet Growth”

Vladimir Vyun writes Video: Gold as of September 17, 2019

Gold slumped today after the release of US nonfarm payrolls. Most other metals joined the decline, with the exception of palladium. US employers added 224,000 jobs in June versus the consensus forecast of 162,000. The report made the US dollar surge and speculators trim bets on interest rate cuts from the Federal Reserve. The CME FedWatch page was showing that markets no longer price in a 50 basis point cut this month and chances for at least some cut were no longer 100%. Yet currently, it looks like bets have returned to about where they were before the report, with a 100% chance for a cut by at least 25 points and about a 6% chance of a 50 point cut.

Another negative factor for the market was the increase of import duties on gold and other precious metals by India today. That was a total surprise to market participants as Anantha Padmanabhan, chairman of All India Gem and Jewellery Domestic Council, told Reuters:

This is a shocking move. We were expecting reduction in the custom duty.

Experts are worried that the move will result in smaller retail demand and increase of smuggling.

Futures for delivery of gold in August dropped 1.44% to $1,400.50 per troy ounce as of 17:17 GMT on COMEX today. September contract for silver tumbled as much as 2.09% to $15.02 per ounce. Spot price for platinum tanked 3.32% to $807.15 per ounce, but palladium manged to gain 0.32% to $1,570.06 per ounce. Copper for delivery in September subtracted 0.86% to $2.66 per pound.


Commodity Blog, 2019. | Permalink | No comment | Add to

Better Feed from Ozh

Vladimir Vyun
Vladimir is an online journalist with background in computer science and work experience in pension funds. He contributes news reports, fundamental analysis and sentiment forecasts to TopForexNews.com and CommodityBlog.com. His main specialization is the currencies of emerging economies and inter-market correlations with commodity and bond trading.

Leave a Reply

Your email address will not be published. Required fields are marked *