Gold could go back down - page 20
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Bearish on Gold.
Fed Comments Will Dominate Gold Market Next Week - Analysts
A preponderance of hawkish central bank comments lately is helping to weigh down the gold market and that is not expected to change next week, according to some analysts.
Gold is seeing some selling pressure Friday, but the metal is still preparing to end its second consecutive week in positive territory as it hit a two-and-half-week higher Tuesday. December Comex gold last traded at $1,336 an ounce, up 0.59% on the week.
Silver, on the other hand, has fallen back below $20 an ounce as it has closed in negative territory four out of the last six weeks. December Comex Silver futures last traded at $19.43 an ounce, down 0.21% on the week.
Some analysts are warning that gold’s short-term trend could be established first thing Monday as a lot of attention will be focused on what Federal Reserve Governor Lael Brainard will say when she speaks at an event in Chicago.
“Brainard is a dove on the committee but if she comes out with a neutral tone -- with the hawkish comments lately -- that would be very bad for gold,” said Colin Cieszynski, senior analyst at CMC Markets. “If gold is going to rally next week then Brainard has to be clearly dovish.”
Although the next Federal Reserve monetary policy decision won’t be released until Sept. 21, most analysts expect that it will be the dominate trading theme next week, keeping gold prices range bound.
Ole Hansen, head of commodity strategy at Saxo Bank noted that since the Brexit referendum, the gold price has averaged around $1,339 an ounce, just slightly above current levels.
“The game between the bulls and the bears is still playing out and I think prices will remain range bound as the market is not comfortable completely ruling out a surprise rate hike in less than two weeks,” he said.
read more
Gold Prices Hold Narrow Range Ahead of Economic Data
Gold prices were little changed Wednesday, barely snapping a five-day losing streak as investors remained on the sidelines ahead of high-profile economic data and a policy announcement from the Bank of England.
Gold for December delivery, the most actively traded futures contract, edged up 0.2% to close at $1,325.90 a troy ounce on the Comex division of the New York Mercantile Exchange. As of 10:40 pm GMT, the futures price was hovering around $1,326.10 a troy ounce.
Precious-Gold Steady, Set For Biggest Weekly Gain In Two Months
Gold was little changed early Friday, but remained set for the biggest weekly gain in nearly two months after rising to a two-week high in the previous session.
FUNDAMENTALS
* Spot gold XAU= was steady at $1,337.60 an ounce by 0109 GMT, on track for a 2 percent rise this week, its biggest gain since late July.
* U.S. gold futures GCcv1 were down 0.3 percent at $1,341.20 an ounce.
* The number of Americans filing for unemployment benefits unexpectedly fell last week to a two-month low, pointing to labor market strength that could pave the way for the Federal Reserve to raise interest rates by December.
* Bank of England policymaker Kristin Forbes said she did not see a case for a further interest rate cut to help Britain's economy after June's vote to leave the European Union, putting her at odds with the majority of her fellow rate-setters.
* The European Central Bank needs to have a flexible approach over the time needed to reach its inflation objective to ensure its policies are aligned with financial stability objectives, Governing Council Klaas Knot said on Thursday.
* By dallying over raising interest rates the U.S. Federal Reserve made it easier this week for central banks in the Asia Pacific to stay dovish, with Indonesia lowering rates on Thursday and Australia and New Zealand saying they could cut later.
* Holdings of SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, rose 0.69 percent to 950.92 tonnes on Thursday.
* A Ugandan company backed by a Belgian investor is due to open the East African country's first gold refinery by the end of this year to process raw gold produced mainly from the region, a senior company official told Reuters.
* Morocco's biggest mining company Managem MNG.CS posted a 63 percent drop in first-half net profit to 52 million dirhams ($5.35 million) on Thursday, citing weak global commodities prices.
source