Gold Analysis: Monday 8/12/2014 Today Projection: According to Fibo retracement, gold upside price around $1,207 and $1,218 and downside target $1,178.58 to $11,60.68. Gold rallies withing range of 1220 and 1160. Gold prices are starting the week relatively strong considering Friday’s surprisingly positive nonfarm payrolls report, but some analysts are expecting to see more pressure in the near-term. Electronic trading of Comex February gold futures open the Sunday North American evening/Monday Asian session at $1,191.20 an ounce, up from Friday’s pit close of $1,190.40 an ounce. Shortly after the open, prices started to fall, hitting an early session low of $1,187.30 an ounce. Prices have since bounced higher; as of 9:12 p.m. EST, February gold was trading at 1,193.80 an ounce. Analysts at HSBC said in a recent note that they expect prices will continue to fall in the near-term as the U.S. economy picks up momentum. This was reflected in the stronger-than-expected employment numbers, adding expectations that the Fed will hike interest rates sooner rather than later. “In short, the data are robbing gold of the oxygen it needs to fuel a rally,” HSBC said in a research note published Friday afternoon. “Against a powerful consortium of higher equities and rates, and stronger (US dollar), the appeal for gold as a perceived ‘safe haven’ evaporated.” Looking at the U.S. dollar, analysts at Brown Brothers Harriman said that it remains king of the currency world. “It continues to be supported by the divergence in growth and interest rate differentials,” they said in a note published Sunday. “In the coming weeks, it is difficult to envision anything that will undermine this general theme.” Edward Meir, commodities consultant with INTL FCStone noted that they are expecting the gold market to struggle in the next three-to-six months. In a report published Sunday, he said that weaker energy prices “will lower inflationary expectations and increase real interest rates, yet another reason that we would be cautious about gold’s upside potential.”
Posted on: Mon, 08 Dec 2014 04:20:32 +0000
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