Gold down for 5th straight day

5 October, 2016

Gold down for 5th straight day

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.


Source link  
Gold headed for critical time

In the last 2 weeks the gold price has broken through 2 significant resistance points and is now heading for perhaps its most important test, the peak reached...

Gold is expected to resume its rally

Gold is on track today to rack up its second straight day of gains which ends a disastrous 2 weeks where the precious metal tumbled over $50...

Gold just received a huge boost

After falling heavily for the last 2 weeks it appears gold may have found a temporary bottom and some news released from the US earlier today may be...


Gold due for pullback

The gold price has stabilized today after suffering 2 straight days of losses as the markets await a key Federal Reserve meeting in which the central bank is going to lay out its monetary...

Gold technical analysis

The gold price is powering ahead today, racking up its fourth straight day of gains as political tensions boil over between the US and North Korea with the later threatening to strike the US...

More loses expected for pound

The British pound continued its downtrend today before recovering slightly...


Analysts divided over Aussie dollar

The Australian dollar is holding steady today with analysts deeply divided over the direction of the currency as the year unfolds. At 8.31pm (GMT) the Aussie dollar was trading at US76.81c virtually unchanged from yesterday’s trading...

Analysts divided over oil price

The gold price remained under pressure today continuing its downward spiral as investors await Wednesday’s interest rate decision and monetary statement from the US Federal Reserve...

Oil down on doubts over deal

The oil price is down over 3 percent today as OPEC's members struggled to agree on a deal to cut production in order to boost the price...

  


Share: