Vang SJC

Yesterday (11/11), gold prices fell slightly, maintaining near 3-month low, amid gloomy trading in Veterans Day and waiting for the important US economic conditions. Ending the session, the price closed at $ 1,086.06 / ounce, down 0.14% compared with the opening price $ 1,089.14 / ounce.

US markets closed for a holiday and precious metals traded in a narrow range between $ 1.094 and $ 1.083. Since achieving a peak of $ 1.175 / ounce in late October, the current price of gold is recorded nine falls in recent sessions 11. The main factor putting pressure on gold prices right now is Federal Reserve expectations (Fed) to raise interest rates, causing the price of gold to fall 6% in the past month.

Today (12/11), the members of the Committee of the Federal Open Market (FOMC) including Fed Chairman Janet Yellen will join the 2-day conference to discuss the Fed’s implementation and main switch of monetary policy in the period after the crisis. Ms. Yellen will speak in the morning and in the afternoon (US time), when Fed Chairman Stanley Fischer will deliver a speech on the impact of the exchange rate on output and inflation. Hence, statements from Fed officials will influence the price of gold.

With the October employment report satisfactory, the Fed chairman also adds to the confident statements about the US economy and the possibility of rising interest rates. The spokesman could pull optimistic gold price goes down further. At the same time, figures for unemployment benefits applications announced today will also affect the movement of the gold price. Positive economic data will support the dollar, thereby creating extra pressure on precious metal prices.

Investors also awaited US economic data such as retail sales, producer prices (PPI) and consumer confidence and announced on the 6th, in order to find clues whether the Fed may raise interest rates in the meeting on 15-16 / 12 or not. In recent months, Ms. Yellen constantly gives the message that the Fed will consider economic data to make their decisions. CME Group raised the proportion predicting the Fed will tighten in December to more than 70%.

The fundamentals in the gold market is not supporting precious metals prices. In India, Diwali lasting 1 week istaking place, but there are no signs to suggest that demand for gold jewelery shop increases. El Nino weather effect influenced the agricultural productivity, causing many farmers can not afford to purchase gold for the festive season. Meanwhile, traders prior to hoard more gold, despite giving lower prices but it is not enough to induce people to buy gold. This negatively impacts the price of gold on world markets.

1:48 pm Currently GMT + 7, gold is trading at $ 1,088.36, up 0.3% compared with the opening price $ 1,085.36.

Market outlook: In the long term, gold prices continued downward pressure at the prospect of the Fed raising interest rates and sluggish demand. After 3 sessions bleak recent trading band between $ 1,095- $ 1.083 / ounce, predicted today will price volatility, due to the US economic data and speeches by officials. Most likely prices will fall to the $ 1.080 / ounce, then can fall to about the $ 1.075 / ounce. However, do not exclude the possibility that prices may climb for resistance $ 1.100 / ounce.

Analyses of Group IF24h

Linh Nhan