Yesterday (20/10), the gold price turned on for the first time after three consecutive losing sessions, the dollar weakened by the rise of the euro, after positive data area and eve Euro zone meeting the European Central Bank (ECB) this week.
Ending the session, gold closed at $ 1,175.91 / ounce, up 0.4% compared with the opening price ($ 1,170.79 / ounce).
Currently, at 1:57 pm GMT + 7, the price of gold is at $ 1,174.32 / ounce.
For today, the gold price will fall ability under the influence of these factors:
As reported by the US Commerce Department yesterday, the number of housing starts (housing starts) in September soared nearly 8-year highs, while apartment construction activity continues to accelerate. Figures showed positive momentum in the market flourishes US real estate, health signals largest economy in the world is recovering strongly, strengthening prospects for US Federal Reserve (Fed) raised interest rates the first time in almost one decade. Rumors of time has not cooled tightening, uncertainties still hanging over the curb onto the market and the price of gold.
According to experts Torsten Slok of Deutsche Bank, the US economy actually stronger than what the market says. Within 12 months, the US could reach its full capacity, and that reason Fed President Janet Yellen, vice chairman Stanley Fischer and William Dudley Chairman expectations about the possibility of “monetary tightening” in 2015.
Besides, on the 2nd (19/10), San Francisco Fed President John Williams declared, Federal Reserve System (Fed) are close to the dual task is price stability and full employment, and will raise interest rates in the near future. He said the US economy grew well and expect the Fed will “tighten” slowly, probably starting in late 2015. The spokesman could support the dollar and the negative impact on prices gold.
On the 2nd, China announced GDP figures III / 2015 better predictions, but still at a record low since 2009. The market is speculation China will launch more stimulus measures in the future, to achieve the growth target of 7% in 2015. Expectations on the support of the Government of Beijing will ease investors’ concerns about the health 2nd largest economy in the world . Hence, the appeal of gold as “shelter” also declined.
However, gold prices may also be increased by:
Yesterday, the credit data from the ECB’s quarterly publication indicates, banks and the common currency have eased lending standards more than expected in the third quarter / 2015, despite the recent market volatility . This causes pressure to extend ECB QE at the next meeting package reduced somewhat. Favorable figures reinforced strength from Christian Noyer said, member Board of Governors on Thursday ECB 2 (19/10) that QE package extremely “fit” and does not need further adjustment. Consequently, the euro has appreciated possibility at this point, put pressure on the dollar, thereby creating momentum for gold flourishes.
Psychology gold investors seem more optimistic. Reserve at gold ETF SPDR Gold largest Trust recorded an increase of 3.6 tonnes in yesterday. As reported COT (investment status of the transaction), the latest published by the CFTC in the 6th (16/10), from 6/10 to 13/10 week, net buyers of gold continues to rise strong momentum rally marking four consecutive weeks.
Identify trends: Gold prices tend to fall, the price toward $ 1.168 / ounce, reached this level, the price can go back to the $ 1.162 / ounce.
Analyses of Group IF24h