Gold to rebound strongly

10 March, 2017

Gold to rebound strongly

Gold is under further pressure today on rate hike expectations in the US and things are set to get worse if tomorrows non-farm payrolls figure hits the market on, or above expectations.

Although the market expects the US Federal Reserve to lift interest rates next week, all eyes will be on the jobs data tomorrow with a strong reading all but guaranteeing a rate hike.

“If the official U.S. labor market data turns out to be good when they are published Friday, nothing is likely to prevent the Fed from raising interest rates next week. According to the Fed fund futures, a rate increase is now completely priced in,” said Carsten Fritsch fromCommerzbank,

“What is more, the gold price fell below the technically important 100-day moving average yesterday, which sparked technical follow-up selling and exacerbated the price slide,” he added.

Although gold is likely to stay under pressure for the foreseeable future, some predict there will be a rebound in the price with gold moving towards $1,400 before the end of the year.

The elections coming up in Europe as well as some of Donald Trump’s protectionist policies, will be the catalyst for golds rebound according to analysts at Bank of America Merrill Lynch,

"While tighter monetary policy is not bullish, inflation and a range of uncertainties, including European elections and protectionism should support the yellow metal. As such, we see prices at $1,400 by year-end". they wrote,

"The decline in volatility across asset classes is particularly notable given some of the massive policy shifts currently under debate in the U.S. and Europe. In our view, the market seems to be ignoring the large and growing risks of U.S. or U.K. policy mistakes and the upcoming electoral cycle in Europe," they added.


Source link  
RBA misleads investors on AUD

The Australian dollar has dropped sharply in today's Asian trading session on the back of disappointing data and throws into question yesterday...

Brexit doubts pressure pound

The British pound has enjoyed a good run against its US counterpart ever since rumors spread that the EU and the UK were close to reaching a deal...

Gold steady ahead of key news

The gold price is trading slightly higher today as the market awaits the senate testimony later today from Jeremy Powell who is Donald...


Gold looks to go past $1300

The gold price remains well supported today after yesterday’s stellar gains on the back of a less than convincing speech from The US Federal Reserve...

Gold remains supported

After falling sharply on Monday, the gold price has stabilized over the last 2 days and it looks as if for now, the precious metal has found strong...

US dollar hit from 2 sides

The US dollar is under pressure against the major currencies today as fears grow over the possibility of tax reform as well as disastrous results...


Australian dollar has further to fall

The Australian dollar is under further pressure today after yesterday’s spectacular plunge which seems to have put to bed any interest rate hike...

Gold technical review

The gold price has finally stabilized today after suffering 3 days of heavy losses and we may be in the process of a double bottom formation. It seems as if the news out of Spain...

Oil set to rebound

The Oil price has finally settled in today’s trading after a week of heavy losses on the back of profit taking and some say that the price may once again head higher. Following a solid month of gains...

  


Share: