Gold down for 5th straight day

October 5, 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.

Publication source
FIBO Group information  FIBO Group reviews

October 26, 2016
Revealed a larger than expected consumer confidence drop to 98.6
Asian stock markets are mostly down, with Japan a notable outperforming (closing up and indices holding on to modest gains as the Yen continued to decline against the Dollar...
October 26, 2016
AUD gains on better than expected CPI numbers
The Australian Bureau of Statistics released the consumer price index data for the third quarter. Official records showed that CPI advanced 1.3% on the year in the third quarter of 2016...
October 25, 2016
US flash Markit PMI jumped 1.7 points to 53.2 in October
Asian stock markets are mostly down, as the positive confidence indicators out of Europe and the U.S. yesterday were overshadowed by weak GDP numbers from South Korea, which weighed on most markets. Topix and Nikkei outperformed, with a weaker Yen underpinning exporters...

Larson&Holz IT Ltd Rating
Fort Financial Services Rating
OctaFX Rating
HotForex Rating
Vantage FX Rating Rating

365BinaryOption Rating
IQ Option Rating
Beeoptions Rating
OptionBit Rating
TopOption Rating
Grand Option Rating