Friday last week (23/10), gold prices continue to fall, the dollar turned to the highest level in more than 2 weeks, while the stock market rally also put pressure on precious metals.
Ending the session, gold closed at $ 1,164.58 / ounce, down 0.1% compared with the opening price ($ 1,165.69 / ounce).
Currently, at 2: 57 pm GMT + 7, the price of gold is at $ 1,162.95 / ounce.
On the 6th, China suddenly announced rate cuts since September 6th 11/2014, simultaneously lowering required reserve ratios, in an effort to revive the economy is on track to weaken. Following this news, the precious metal jumped more than 1% on the day’s ceiling of $ 1.180 / ounce. However, the momentum quickly “evaporate”, by easing of China, the number of positive US economic data, strengthening prospects for US Federal Reserve (Fed) raised interest rates in 2015. Once the Fed action, the appeal of gold declined compared to interest bearing assets.
PMI US manufacturing in October rose to a record high since January 3/2015 of 54 points from the previous month’s slight slide. The figure exceeded the expectations of experts, supporting the greenback climbed to a peak since the day 19/8 versus currency basket strong, putting pressure on gold prices.
Besides, the stock continues to escalate, causing massive capital inflows pouring in this market, also create downward pressure on gold prices.
During the meeting of the 5th ECB in Malta last week (22/10), Mario Draghi said the Chairman, the ECB will weigh 1 to “caution” before making a decision to strengthen loosened. His statement repeated “tone” predecessor Jean-Claude Trichet, in a signal for one of the upcoming policy changes. Investors welcomed this statement as innuendo about the possibility of launching additional ECB stimulus measures in December 12. This may continue to trigger the selling-off of the session the euro today. Euro’s slide could create momentum for the dollar rally, dragging down gold prices.
Meanwhile, investors are nervously waited for the Federal Reserve’s FOMC meeting held on 27-28 / 10 (US time), to search for indications of plans to raise interest rates for the first time after almost one decade . Although the ability Fed “tightening” in October was very low, the time is still be open in December. The controversy surrounding the Fed’s plan to cause instability in the market, gold prices held back in recent months.
However, gold prices may also rise. As reported COT (investment status of the transaction), the latest published by the CFTC in the 6th (23/10) from 13/10 to 20/10 week, net buyers of gold continues to climb ladder week for 5 consecutive weeks, a record high level since May 1/2015 is +151.301 contract. This is a signal of optimism is gradually returning the gold market, gold price could rally support in the future.
With the Fed expected to keep interest rates in the upcoming FOMC meeting, many investors may buy gold, when gold prices are low.
Tonight, the US will release new home sales figures month 9. Good will support dollar, negatively impact the gold price.
Identify trends: Gold prices are likely to fall towards the price $ 1.156 / ounce, reached this level, the price can turn on the $ 1.151 / ounce. However, if support from US private and precious metals can turn up the threshold $ 1.169 / ounce.
Analyses of Group IF24h