Gold may struggle to rebound

4 October, 2017

Gold may struggle to rebound

The gold price is under further pressure today as investors exit the safe haven commodity in favour of the US dollar after yesterday’s positive round of economic data from the US

ISM manufacturing PMI numbers hit the market at 60.8, well above expectations for a figure of 58 and all but guarantees a rate hike from the US Fedral Reserve in the coming months.

Gold is now sitting at a 7-week low and has certainly fallen out of favour with traders as Geo political tensions cool down, which give little reason to hold onto non-interest bearing investments such as gold.

Unless the situation drastically changes between the US and North Korea it is hard to see gold bouncing back and further losses are expected and it seems the market is bracing for such a situation

"The factors that pushed gold toward $1,360 in early September are now reversing," said Julius Baer analyst Carsten Menke.

"The U.S. dollar and yields have rebounded from their recent lows and it looks like positioning in the gold futures market is somewhat reversing, with some long covering and new shorts." He added


Source link  
Gold awaits US employment data

The gold price is under further pressure today after being hammered over the last week and as we mentioned yesterday, any sustained break down...

Gold ready for breakout to the upside

The gold price has certainly behaved strangely this week, failing to react to news which would usually send the precious metal considerably higher...

Pound set to rally

The British pound continues to rise today against its US counterpart after rumors surfaced yesterday that the UK has reached a settlement to leave the European union...


Gold awaits news on tax reform

The gold price is making another run for the $1,300 mark in today’s trading session on the back of US dollar weakness and as the market...

Gold takes a breather, comeback predicted

The gold price has drifted slightly lower for the 2nd day in a row on the back of profit taking as the US as the US celebrates thanks giving...

Gold looks to tax reforms

The gold price is slightly lower in today’s European trading session although it is still hovering around 1 month highs as fears grow that US President...


Gold set to go higher

The gold price has moved significantly higher over the last 4 trading sessions on the back of US president Donald Trump’s trip to Asia as well as political turmoil for the president back home...

Euro set to weaken further

The Euro is under further pressure today against its US counterpart after suffering heavy losses on Friday on the back of strong data from the US...

Gold awaits next Fed chair

The gold price is heading for a 2nd day of gains as the market awaits US president Donald Trump’s choice for the next candidate to run the US Federal...

  


Share: