Gold price to follow macro factors; event risk up ahead Gold price broke its five-day losing streak to close higher on Monday and prices continue to make gains into Tuesday’s Asian trade. With major events such as today’s FOMC meeting and the Scottish independence referendum on Thursday, markets are poised for headwinds to hit the currency markets and influence precious metals performance as well. Attention now turns to the FOMC meeting which starts today, with financial markets watching closely, speculating a higher change that the Fed will accelerate its timeline to raise interest rates. Meanwhile, the US dollar’s recent rally took a breather on Monday as traders stayed sidelined ahead of risk events such as the FOMC followed by the Scottish independence referendum on 18 September. While the Euro has recovered from its significant slide against the greenback last week, it remains under 1.30, with prices last seen at 1.2945 against the dollar. The dollar index continued to stay near its 14-month peak, last seen at 84.2. “Gold’s recent price action indicates that direction up ahead is likely to be influenced more by macro factors suggesting that FOMC clues and US data releases are going to be increasingly important. A hawkish FOMC statement on Wednesday presents considerable downside risks for gold right now Spot gold price is last seen at $1,236.20 per ounce, up $3 from Monday’s close. Silver is also $0.04 higher at $18.70 per ounce, trading near its lowest in 15 months. “Speculative financial investors are becoming increasingly pessimistic…In the latter(silver) case, this was already the eighth consecutive weekly decline, meaning that money managers have contributed to the fall in both gold and silver prices. Given that prices have dropped further since the reporting date, net long positions have no doubt also been reduced further in the meantime,” said a research note from Commerzbank. Platinum and palladium prices are also higher this morning, with platinum up $1 to $1,363 and palladium up $4 at $837 per ounce. DISCLAIMER: New Zealand Mint does not provide financial advice and does not employ financial advisors. Any opinions expressed within news articles are not intended as recommendations. If you are looking for investment advice, please seek independent, specific advice regarding your personal financial situation from a qualified professional.
Posted on: Wed, 17 Sep 2014 10:27:36 +0000
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