Yesterday (3/11), the price of gold recorded the 5th consecutive day reduced the prospect of the Fed raising interest rates in June 12. Ending the session, prices closed at $ 1,117.53 / ounce, down 1.4% compared to the opening price door $ 1.133.
Following the announcement to keep interest rates at a meeting in October of the Federal Reserve (Fed), investors and analysts continue to closely monitor the economic data in the US, to find more clues confirm whether the Fed has raised interest rates in nearly a decade, or not. But many argue that the economic data such interleaving can still weighing on precious metal prices, and see no reason not help gold prices recover. Gold prices will remain under downward pressure in the psychology of waiting until the end of this week.
In the October policy meeting last week, the Fed signaled that it would consider direct ability to tighten in the next meeting. The US economic data recently made bleak market that the Fed will not act until 2016. This unexpected statement the Fed has stopped the rise of gold prices.
Market focus this week will be the employment report published in October 6th (April 6/11), and the speech of the Fed’s power trio today.
Fed President Janet Yellen have a hearing before the Financial Services Committee of the House at 10 am at the Capitol Hill. The official theme is about financial regulation, but lawmakers are free to put any questions, including monetary policy or the economy. New York Fed President William C. Dudley will hold a press conference at 2:30 pm in New York, and Vice Chairman Stanley Fischerse talk with Club National economists in Washington at about 07:30 local time.
This will be an opportunity to reinforce the market’s Fed statement at the meeting in October, in order to find clues about the possibility of the Fed raising rates conducted in December to or not. Along with employment figures reported in October, suggesting the labor market health United States, whether it is enough for the Fed confident on prospects for full employment. Previous outlook Fed raised interest rates, precious metals increasingly devalued.
Prior to the downward pressure on expectations the Fed tightens, demand for gold globally is not very flourishing. Ahead of the festival takes place between November Diwali Indian gold imports in October declined by 87%, only 3 MT of gold were imported in October compared to 24.07 MT in the same period last year.
Although current gold prices are the lowest in 5 Diwali festive season back, but import demand remained low, by bullion traders are still “sitting on” sizable pile of gold reserves . Before that they had increased imports in July and August this year. Tepid demand in India also dragged gold prices go down.
At the same time the most important economic data of the US also announced today, including reports of non-farm employment of the ADP survey, the balance of trade, or the non-manufacturing PMI.
As predicted by economists, the number of new jobs created under the ADP survey will reach 183,000 jobs, below last month’s figure of 200,000. Although this is not official data but still have an impact on the direction of the dollar when published, affect the price of gold. Prices will fluctuate sharply at the news. Better data expected to support the dollar, dragging gold prices go down, and vice versa.
Current GMT + 7 3:00 pm, gold is trading at $ 1,119.23 / ounce, up 0.1% compared with the opening price $ 1,117.77 / 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 important events of the day, predicted gold prices would fluctuate sharply. Most likely prices will continue to move on the support price $ 1.100 / ounce. However, the news can not exclude negative US economic support gold prices go up, possibly hitting $ 1.135 / ounce.
Analyses of Group IF24h