Day 9/12 Yesterday, gold prices may decline slightly, but ranged between $ 1,069.44 wide margin and $ 1,085.34 / ounce. Ending the session, the price closed at $ 1,072.51 / ounce, down 0.2% compared with the opening price $ 1,074.87 / ounce. Precious metals under pressure to go down before expected Fed raised interest rates for the first time in nearly a decade.
Causes of price movement explained in yesterday, investors may see here: 4 reasons why gold prices fell SESSION 09/12/2015.
Gold prices are still under pressure to go down before expected Fed rate hike. After the November jobs report positively, investors expect the Fed reinforces raise interest rates. Rate investors bet 78% chance the Fed will act in the following week’s meeting. Psychology lost faith in the precious metal as pressure gold prices downward.
Asian session this morning, gold edged up amid publication of economic data in Asia. Japan reported commodity prices now falling lost 0.1% in November, 8th consecutive decline, compared with a fall of 0.3% previously. Australia claims data showed more jobs 71.400 jobs in November, compared with a fall of 10,000 jobs, over 65% expected, unemployment accounts for 5.8%, below the expected 6%. Also in Australia, MI inflation expectations at 4% in December, up from 3.5% in May 11. New Zealand’s central bank cut interest rates. Previous series news, investors reduced attention to precious metals, gold prices edged up support.
Today the market received many important economic events, including policy meeting of the Swiss Central Bank (SNB) and the Bank of England (BOE) attracted the attention of investors . Most likely in Europe, the price will move in a narrow range.
Applications for US unemployment benefits announced tonight will impact on the gold price, because this is one of the Fed data help assess the health of the labor market. Economists predict there will be 266,000 people filed for unemployment benefits last week, down slightly from the previous week. If the figures were as expected, the Fed will have more confidence to proceed to raise interest rates next week, and pulled gold prices go down. However, negative data will reduce the market’s expectations on the Fed’s decision, supported gold prices up.
Besides, the proposal of the Government of India gold is also positive signs. 20-year-old temple Shree Siddhivinayak in Mumbai is considered saved 160 kg of gold in a bank, is a positive signal that people are responding to proposals circulating gold coins, help mobilize 20,000 tonnes of gold reserves of the people and the temple, which limit the import needs of the country gold. If this project continues to be responding, weakening supply will negatively impact the gold price.
Although still subject to downward pressure on the Threshold of the Fed meeting next week, there are positive signs helped gold prices rally in the near future.
World Gold Council (WGC) yesterday announced periodical statistical updates on the official gold reserves of the country. The changes are adjusted as gold reserves increased in the second half of 2015, Russia (95.6 tons during the period May 7-10), China (83.9 tons in 5 months up to August 11), Kazakhstan (11.7 tons within 4 months of the end of October). WGC expects these countries will continue to buy gold with the same speed. Speculative demand in the country may support precious metal prices go up.
Upcoming New Year of the Asian countries, gold jewelery demand is expected to increase. Gold imports by India, the country’s second largest gold consumer in the world, doubling in November, amid the gold price dropped to 5 year lows boosted demand peak during the festival and wedding season , peaked at 101 MT from 45 MT in May 10. Demand flourishes in India and China can support the gold price rally in the near term.
Reports from Russia also showed gold output in the first 10 months declined from 246.1 tons to 243.9 tons in gold mining output also fell, indicating the loss of precious metal prices also affected profits of the miners. Supply and demand weakened in Asia increases will push gold prices rise in the future.
At 1:40 pm GMT + 7, gold is trading at $ 1,074.40, up 0.2% compared with the opening price $ 1,072.03 / ounce, and is looking forward to the block below 38.2 in 23.6 plagued at $ 1.072 / ounce.
Observe the H1 chart can see, prices are aiming at $ 1.079 plagued 23.6 / ounce, no gain turned down. H1 candle present clearance hit 38.2, expected to close in this price range. Then the price will continue moving up towards clearance 23.6. Predicting the price will move in the range $ 1,072- $ 1.079 / ounce, and the US will turn more volatile, if strong enough will prevent 23.6 gold prices plunged to 50.0 in $ 1.067 clearance / ounce.
23.6 Where clearance is broken in today, prices will bounce much higher, possibly hitting $ 1.082 / ounce.
Besides, engines start MuaEA SIGNAL TREND sell signal in early trading today, is currently losing 230 points.
The expectation the Fed raised interest rates in December was covered market, adversely impact the gold price. Precious metals are still in downtrend. The market is anxiously waiting for the Fed policy meeting next week will decide the direction of precious metals prices. Today, the market is shifting the focus to the SNB and BoE meeting should volume and margins will not be too big.
Observe the H1 chart in Technical Analysis can see currently have 2 plants should be reduced compared with 6 candles rose. Average body of 2 candle fell 96 points, while four rose candle candlestick averaged 73.5 points, indicating more selling pressure remains strong buying power.
Most of the increase and decrease H1 candles are longer upper shadow shadow below, showed that want to sell off, in accordance with market expectations regarding the Fed will raise interest rates at a meeting next week.
As mentioned in the basic analysis, gold prices will be affected by data applications for unemployment benefits in the US. Despite the downward pressure on prospects the Federal Reserve raised interest rates, but gold prices could still edged up in today.
Observe the H1 chart can see, the price of gold has approached resistance level 38.2 and 23.6 are aiming clearance. In the case of applications for US unemployment benefits rose more than expected, prices will likely rebound, most likely to touch the red line at $ 1.082 / ounce.
Gold prices continued downward pressure on expectations the Fed to raise interest rates in the policy meeting March 12. The market is anxiously waiting for the Fed policy meeting next week. With interest accrues on SNB and BoE today, predicts prices will continue to fall, possibly hitting $ 1.067 / ounce.
However, the factors mentioned in the risk analysis, gold is likely edged up in today, expected to reach the $ 1.082 / ounce.
Analyses of Group IF24h