Its a good day for gold

15 June, 2017

Its a good day for gold

The gold price has surged higher in late European trading today, travelling in the opposite direction of the US dollar as a round of disappointing data out of the US just before the Fed’s interest rate decision and a shooting in Virginia spooked investors.

At 3.32pm, (GMT) gold was trading at $1,277 up from $1,266 in yesterday’s trading.

Retail sales figures release from the US earlier today came in at -0.3 percent against predictions for a figure 0.1 percent and comes just hours before the US Federal Reserve are widely expected to lift interest rates.

Consumer price index figures also disappointed investors coming in at 1.9 percent, slightly below expectations for a figure of 2 percent but more importantly, decisively below the 3 percent figure the trump administration has promised.

The Fed now has a dilemma on their hands and although they will lift rates later today, the following monetary speech is likely to be bearish, and gold may receive its 2nd boost of the day as further rate hikes may be off the table this year.

"If the Fed hikes, it will most certainly be followed by a dovish comment," Saxo Bank's head of commodity research Ole Hansen said. "Either way it could signal the end of the latest gold retracement, which has been healthy and not that deep considering the speculative length that was added during the past few weeks." He added. Also boosting gold’s appeal as a safe haven asset was a shooting earlier today at a baseball game in Virginia where the wounded included 2 police officers and Whip Scalise, a US congressman which caused chaos at the stadium.


Source link  
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...

New sanctions won't hurt gold

The gold price is stable in early Asian trading today after falling heavily yesterday after a planned missile test from North Korea failed to eventuate...


Gold down but not out

The gold price has bounced back in today’s trading after racking up losses on the back of a deal between the white house and Congress and some say yesterday was just a small...

Oil to remain capped at $50

The oil price is making another run for the $50 mark today over concerns about the damage that Hurricane Harvey has caused, but below it will struggle...

Gold down on profit taking

Gold has pulled back in the last 3 days on the back of profit taking but by no means is the rally over with so much uncertainty around us at the moment...

  


Share: