In early trading week yesterday (2/11), the gold price recorded for 4 consecutive days of losses, reaching their lowest level in 4 weeks. Ending the session, the price closed at $ 1,133.20 / ounce, down 0.7% compared with the opening price $ 1,141.38 / ounce.
Precious metals continue to come under pressure after declaring October policy meeting of the Federal Reserve (Fed). The Fed decided to keep interest rates unchanged, as markets expect. However, the institution was directly “refer” tightening outlook in March 12. The Fed said it will evaluate the possibility of raising interest rates in the next FOMC meeting, based on the growth of inflation and the labor market, while eliminating the risk of slower global growth could threaten the US economy. Prospects Fed tightening this year is strengthened, putting pressure on gold prices.
Now, the market waited for the state in the important US economic data. This week the focus will be the employment report released October 6th (dated 6/11), the hearing of Federal Reserve Chairman Janet Yellen in tomorrow, and the speeches by Fed officials.
Yesterday, San Francisco Fed President John Williams was a speech about consumer financial services and banking technology area, but he did not make any public statements about the economy or the The Fed’s monetary policy. It seems that the market did not get disappointed clues about the Fed’s intentions for the next meeting in December. Therefore, the market will continue to monitor economic data and upcoming speech by Fed officials for more clues about when the Fed tightens.
Today the market will remain in the psychological waiting so likely no volatility. Gold prices are affected data production orders published at 10:00 pm. After declining 1.7% in September, economists predicted that this number will continue to decline but shrinking at -0.8%. Negative economic data could push the dollar down and supporting precious metals prices go up.
3:00 pm Currently, gold is trading at $ 1,136.83 / ounce, up 0.3% compared with the opening price $ 1,133.10 / ounce.
Market outlook: In the long term, gold prices remained under downward pressure as the prospect of the Fed raising interest rates this year. With the psychology of waiting, anticipating today, gold prices will not fluctuate sharply, may inched up to $ 1.145 / ounce. However, if the positive US economic data will pull the gold price go down, can hit $ 1.130 / ounce, around the opening price.
Analyses of Group IF24h