Yesterday (21/10), which recorded price slide “disastrous” in the past 3 weeks, before the recovery of the dollar against the euro, amid controversy over plans to raise interest rates by bureau US Federal Reserve (Fed) has yet to reduce resolution time. Meanwhile, investors are cautiously waited for the meeting of the European Central Bank (ECB) today (22/10).
Ending the session, gold closed at $ 1,167.03 / ounce, down 0.75% from the opening price ($ 1,175.39 / ounce).
Currently, at 3:03 pm GMT + 7, the price of gold is at $ 1,167.56 / ounce.
In trading yesterday, precious metals continue surpassed the average price of 200 days ($ 1.175 / ounce) 6th session in a row, but then “plunged” than $ 10 lows of the day ($ 1,163.65 / ounce ). Gold prices did not “break” is an important resistance, making investors disappointed, boosting momentum in the market sell-off. Therefore, gold likely to continue under pressure fell again today.
The dollar reversed to go up against the euro ahead of the ECB meeting. Investors expect the ECB will not expand the asset purchase program worth € 1.1 trillion (QE) in October, however, the institution might imply the ability to do that at the end of 2015. Besides which, according to the strategist’s Vassilis Karamanis Bloomberg, the euro is stunted, though the ECB has declared strengthen loosened or not in this meeting. Psychological pressure from investors, market position and technical resistance, all of which “implies” the downward trend of the European common currency. The euro fell could create momentum for the dollar rally, putting pressure on gold prices.
According to the latest report by Goldman Sachs announced today, the US Federal Reserve (Fed) rate hike likely in 12/2015 and then interest rates may be increased by 100 basis points in 2016. forecasting institutions, the shift of the US monetary policy will cause “damage” the gold market. The bank said that the bullion price has dropped to $ 1.100 capabilities / ounce in the next 3 months, 6 months $ 1.050 and $ 1.000 in the first years.
Concerns over China have somewhat cooled down. On 2nd (19/10), China announced GDP figures III / 2015 better predictions, although still at a record low since 2009. The market is speculation China will launch more measures economic stimulus measures in the future, to achieve the growth target of 7% in 2015. The People’s Bank of China (PBOC) today (22/10) had injected 105.5 billion yuan (or $ 16.6 billion) into the banking system, loans using the 6 month period to keep borrowing costs low, to prevent further massive capital withdrawal from the mainland. Expectations on the support of the Government of Beijing will ease investors’ concerns about the health of China’s economy
Yesterday, President Xi Jinping declared that China will not “plummeting” after the impressive growth. 2nd largest economy in the world still maintained momentum, however is entering phase “steady growth”.
Hence, the appeal of gold as “shelter” also declined.
However, gold prices may also increase due to the following factors:
According to Christian Noyer said the member Board of Governors of the ECB on Thursday 2 (19/10), QE package extremely “fit” and does not need further adjustment. If the ECB does not mention enhance monetary easing in its meeting today, the euro is likely to increase sharply, putting pressure on the dollar, thereby creating momentum for gold flourishes.
Tonight, the US will publish the application for unemployment benefits, home sales index available and led by the Conference Board. Good data supports dollar, putting pressure on gold prices.
Identify trends: Gold prices are likely to fall, towards the $ 1.162 / ounce, exceeding this threshold, the price can turn on the $ 1.159 / ounce. However, if there is good news supported and precious metals can be turned up $ 1.176 / ounce.
Analyses of Group IF24h