Yesterday (30/11), before US economic data released not as expected, gold prices bounced back, get rid of nearly 6-year lows reached a daily high at $ 1,069.57 / ounce. Ending the session, the price closed at $ 1,064.54 / ounce rose 12:46% compared with the opening price $ 1,057.05 / ounce.
According to the Association of National Property (NAR), now pending home sales edged up 0.2% only in October, far less than expected to 1.5% of the economists. Another report by market research group Kingsbury International showed the Chicago PMI Managing purchases declined 7.5 points to 48.7 points in November, compared with an increase of 56.2 points spectacularly in October.
Economic data disappointed somewhat curb the strength of the dollar and support gold prices edged up, get rid of nearly 6-year low.
Along with that, the status of Chinese manufacturing fell to its worst in three years, due to the stagnation of the traditional engine of growth increased risks to growth objectives of the government . Activity stagnant production raises concerns about the growth of the 2nd largest economy in the world, will promote safe-haven demand for the precious metal. Gold prices surged to highs at $ 1,074.46 Day / ounce.
However, this increase will be tempered by co Dollar remains strong ahead of the growing confidence in the outlook Federal Reserve System (Fed) will raise interest rates at a meeting June 12. The US dollar index measuring the strength of the greenback versus six major currencies, climbed to the highest level since May 4. The market continues to bet on the price of copper Dollar 5th consecutive week, and the possibility of the Fed raising interest rates December amounted to 74%.
Prospects Fed tightening will continue to pressure gold prices downward. This week, investors will be closely watched non-farm payrolls in November of America announced on Monday 6 (4/11), final jobs report before the Fed’s policy meeting on 15 -16/12 to.
The market also awaited speech by Fed Governor Lael Brainard in 3rd (1/12) at a meeting of the Institute for Economic Policy Research at Stanford Associates, to find more clues about when the Fed raised interest rates. In the last month, Brainard has made numerous statements fairly relaxed and warned that rising interest rates will likely have a ripple effect across borders and drag the global economy down. The market will also focus on speeches by Fed Chairman Janet Yellen on Monday 4 (2/12) and a hearing before Congress on Thursday 5.
The spokesman of Fed officials will help investors consolidate expectations. Most likely the Fed will speak optimistic about the US economy, and a sign it was time to normalize interest rates in nearly a decade. Psychology will give investors “alienate” the precious metal as a safe haven asset, gold prices continued to pull further losses.
Gold demand also weighed heavily dived pressure on gold prices. Investors are losing confidence in the precious metal. According to data the Commission Commodity Futures Trading (CFTC), announced on Wednesday (30/11), hedge funds and cash management funds increased net short position on Comex gold contract on the highs at. The SPDR gold assets in the fund, the fund swaps are the world’s largest gold bottomed since 12/2008.
On the physical gold market, the appearance of signs that strong demand gradually however, still not enough to push gold prices up. Sales of American Eagle edged up in November, with nearly 3 times the amount of gold last month. Imports of US jewelry jumped 12% for gold before the festive season.
Gold transaction accounts increased by 2% in October, according to the Association of London commodity market (LBMA). India is considering changes in the scheme circulated gold coins of this country at the meeting on Tuesday (1/12), after the response is not encouraging when the program starts activation. This move shows that India is trying to mobilize national gold reserves in order to limit gold imports. India is the country’s largest gold consumer in the world, so this project will impact negatively on world gold prices.
IMF officially recognized the renminbi become a reserve currency in the SDR basket. This move will be able to consolidate China’s position in the campaign to become one of the leading financial powers in the world. Analysts said that this decision can attract money flowing into renminbi assets as well as valuation of the yuan, which may reduce the need to invest in gold. But the IMF’s decision will take effect on the date 01.10.2016, so this event will have no immediate impact to the gold market.
The focus of the market today is the speech by Federal Reserve Chairman, Chicago tonight, Charles Evan economic and monetary policy, and Governor Lael Brainard Fed, along with the manufacturing sector index ISM. Economists predict the index of the ISM manufacturing PMI to rise slightly compared with the previous month figures at 50.6 points, a sign that manufacturing activities are still being expanded.
Currently, 3:05 pm, GMT +7, gold is trading at $ 1,069.73 / ounce, up 0.45% of the compared with the opening price $ 1,064.93 / ounce, tends to escape more than 5-year lows.
Market: In the context of the market bet on Fed rate hike outlook, several Fed officials have attitudes in favor of tighter monetary policy, gold prices will remain under downward pressure. However, at the Dollar is “little vacation” get a rise, and investors can actively covering support for gold prices to go up, gi along with psychological awaited important events this week . Currently, the price tends to escape from the bottom of $ 1.052 / ounce. Anticipating today’s prices will continue moving up, may hit $ 1.080 / ounce.
However, a spokesman for tightening of Fed officials and US economic data lower than expected may be pulled down gold prices, possibility of return to lows around $ 1.052 / ounce.