During the sixth session last week (6/11), the price of gold slid to 3-month low, recorded the 8th consecutive losing session while dollar rose, US employment reported for the number positive data, strengthen the chance that Federal Reserve System (Fed) raise interest rate in December. Ending the session, prices closed at $1,088.95 / ounce, down 1% compared with the opening price $1,104.47 / ounce.
According to published reports, it has added 271,000 new jobs in October, the largest number this year, far exceeding the 185,000 jobs forecast by economists. Average hourly earnings rose 0.4% from the previous month. Wages of employees increased 2.5% from the same period last year, the biggest gain in six years.
At the end of last month, Federal Reserve System (Fed) has officially announced that it would consider the possibility of raising interest rates in the next session. In the past week, Federal Reserve Chairman, Mrs. Janet Yellen also reiterated that capacity is entirely possible. Good employment report works as one of the prerequisites for conducting Fed officials will raise interest rates. October Employment Report expected positive reinforcing speculation the Federal Reserve to raise interest rates. At the Dollar backed up prices, gold prices dropped as deep drag. In last week’s trading session, the precious metal hit a low of $ 1,084.82 was / ounce, the lowest since March 9/2015.
On Saturday (7/11), San Francisco Fed, President John Williams at the next step that the Fed is raising interest rates to speed slowly, and the elements to bring inflation down, including cheap oil and copper strong dollar, will soon be eliminated and help restore inflation. Mr Williams is said to be a neutral member of the Fed’s decision making, this is also the spokesperson optimistic about the prospects for inflation, is a sign of support for the Fed’s ability to conduct tightening in the next meeting follow.
On the gold market, there are not many signs of support for gold prices. In India, the eve of Diwali, the demand for gold in this not very prosperous. Additionally, the Indian government launched its own gold coins, gold coins circulate Scheme (GMS) and the Scheme contrary phieuvang sovereign, to mobilize 20,000 tonnes stored in households and temples . The move will help reduce large amounts of Indian gold imports.
In China, gold holdings rose by 14 tonnes of gold in May 10. Earlier, China’s gold reserves increased by 15 tons in September, 16 tonnes and 19 tonnes in August of next month 7. Plan increasing gold reserves may support precious metal prices go up.
Before gold price outlook bleak, with expectations the Fed raised interest rates, gold prices will continue to go down in the long term. Market focus this week will be speeches by Fed officials, including Ms. Yellen, said Charles Evans, William C. Dudley, and Stanley Fischer, along with US economic data as important as price indices producer (PPI), consumer confidence index, … can also affect gold prices.
3:12 pm Currently GMT + 7, gold is trading at $ 1,093.16 / ounce, up 0.3% compared with the opening price $ 1,089.48.
Market outlook: In the long term, gold prices continued downward pressure. With the first trading sentiment today, predicts there will be no big changes. Currently, prices are facing resistance at $ 1.100 / ounce, likely today price may reach this level. However, there may be excluded price to go down right, towards the support price $ 1.085 / ounce.
Analyses of Group IF24h