4 October, 2016
The gold price continued to fall today, racking up its 5th day off losses as fears subsided over the fate of the European banking system with Deutsche Bank allegedly close to making a deal with the US government.
At 5.13pm (GMT) gold was trading at $1,311 down from $1,316 in yesterday’s trading.
After initially demanding US$14 billion from Germany’s biggest bank by way of penalties linked to its MBS business, which would have seen the bank on the verge of bankruptcy, US regulators have agreed to US 5.4 billion dollar fine, bringing a sense of calm over the markets.
Also weighing on the gold price today is a stronger US dollar boosted by better than expected manufacturing data which increased the chances of a rate hike from the Fed in December.
The purchasing manager's index (PMI) hit the market at 51.5, bouncing back from a number of 49.4 in August.
A number above 50 shows the sector in expansion mode.
"The September PMI release breathes a sigh of relief to growth concerns given the survey's abrupt deterioration in August," said Brittany Baumann, a macro strategist at TD Securities.
"Besides the headline index, which is consistent with its 6m trend, the details were broadly supportive of continued expansion in manufacturing activity and suggests that the August drops were likely a blip." He added.
Speculation surrounding the chance of a rate hike in the US before the end of the year may be just enough to keep gold from building up any steam and rallying much further.
“With investors uncertain on whether the Fed will raise rates this year, there is just enough of a headwind to keep gold prices under pressure,” said Peter Hug, global trading director at Kitco Metals.
The latest tumble in the oil price has now reached gigantic levels, almost equaling the declines reached during the global financial crisis and according to some analysts, we may...
A declining stock market is always good for gold as investors look for somewhere safe to ride out the uncertainty. Precious metals are seeing buying...
The British pound is powering ahead today against its US counterpart as more positive data raises speculation that a rate hike from the Bank...
After a horror 6 months the gold price has found much needed support over the last 4 weeks and is now sitting above the $1,200 mark and depending...
As widely expected, US President Donald Trump has slapped another $200 billion worth of tariffs on Chinese goods which has caused a lift in the US dollar today against the major...
The US China trade war has now come to the top of the headlines again with US President Donald Trump keen to go ahead with an extra $200 billion...
Just when we thought that a deal between the European Union and Great Britain was in the making and thus avoiding a hard Brexit, another spanner...
The British pound has surged back through the $1.30 mark after progress made today on Brexit negotiations raised speculation that a deal...
The oil price had a rough time last week, hitting its lowest level since join after a report by the energy watchdog showed rising inventories which raises concerns over global growth...