Declining number of risky assets, including declining demand for gold occurred after the U.S. Nonfarm Payroll (NFP) data in April that weak so that investors are concerned that people's purchasing power will also decrease because the economy weakens. The U.S. NFP number that appears much lower than expected, has boosted demand for the currency market with the status of safe haven as the U.S. dollar, so that automatically help weaken gold denominated in U.S. dollars. Today, gold prices are in U.S. $ 1637.30
But the decline in gold is limited by speculation among investors where the weakening economy would likely trigger additional policy easing from Federal Reserve. Previously, the market is still reminded by the attitude of the governor of the Fed - Ben Bernanke said that QE3 depends on the future economic data.
In addition, gold prices fell as the election results in Europe adds to the anxiety of Europe's debt crisis, after the candidate from the Socialist Party Francois Hollande defeat in Nicholas Sarkozy the election of President on Sunday. Other than that Greece party's pro-bailout suffered a major defeat.
That raises doubts about the ability of Europe to seek measures budget austerity due to this defeat, leading to the strengthening U.S. dollar to its highest level and trigger a 3-week Euro weakness and also gold.
Tuesday, May 8, 2012
Friday, May 4, 2012
Gold Price Eroding
Futures gold prices for June delivery in New York are flat today. At 8:16 pm Melbourne time, the gold contract for June delivery was in the position of U.S. $ 1636.40 per troy ounce. Throughout this week, gold prices for this contract was down by 1.7%.
Meanwhile, the contract price of gold for fast delivery are also not much listed changes in the level of U.S. $ 1636.07 per troy ounce. Thus, throughout the week, gold prices for this contract was down 1.6%.
While the contract price of silver for July delivery rose 0.3% to U.S. $ 30.09 per troy ounce and is toward a weekly decline of 4.2% this week.
Yesterday, gold prices recorded the biggest drop in three weeks after the European Central Bank refrained from adding more stimulus into the financial system at a meeting in Barcelona.
The factors causing the price of gold fell
Gold is now seen as a physical commodity rather than a safe haven asset or hedging tools. The decline in gold prices occurred after unemployment data (Jobless Claims) in some countries jumped sharply. This is fueling the fears that the global economy will slow. Mere information, the unemployment rate in Europe surged to its highest level in 15 years.
In addition, gold ownership in exchange-traded products fell to its lowest level in three months. The data compiled by Bloomberg show, yesterday (May 2), gold ownership in ETP fell to 2381.045 per metric ton. This is the lowest level since February 1.
Another factor in the decline in gold prices is the strengthening U.S. dollar against the euro.
Meanwhile, the contract price of gold for fast delivery are also not much listed changes in the level of U.S. $ 1636.07 per troy ounce. Thus, throughout the week, gold prices for this contract was down 1.6%.
While the contract price of silver for July delivery rose 0.3% to U.S. $ 30.09 per troy ounce and is toward a weekly decline of 4.2% this week.
Yesterday, gold prices recorded the biggest drop in three weeks after the European Central Bank refrained from adding more stimulus into the financial system at a meeting in Barcelona.
The factors causing the price of gold fell
Gold is now seen as a physical commodity rather than a safe haven asset or hedging tools. The decline in gold prices occurred after unemployment data (Jobless Claims) in some countries jumped sharply. This is fueling the fears that the global economy will slow. Mere information, the unemployment rate in Europe surged to its highest level in 15 years.
In addition, gold ownership in exchange-traded products fell to its lowest level in three months. The data compiled by Bloomberg show, yesterday (May 2), gold ownership in ETP fell to 2381.045 per metric ton. This is the lowest level since February 1.
Another factor in the decline in gold prices is the strengthening U.S. dollar against the euro.
Thursday, May 3, 2012
Gold Price is Still Under Pressure
Gold prices fell on Wednesday as the decline in the stock market and other commodities, following a disappointing employment data of U.S. private sector and weak physical demand, adding to the decline in gold for the second day. Gold, which this year follows the performance of risky assets, is under pressure after ADP report showed the addition of workers of at least in seven months in April, adding to worries that the economy has lost its momentum.
Market players said the ADP data, does not seem strong enough to alter the view that good U.S. economic data recently has eroded expectations of additional quantitative easing by the Federal Reserve. The gold market is awaiting the data of April nonfarm payrolls on Friday for clues about whether the U.S. central bank will keep interest rates near zero for several years and use the stimulus to boost economic growth. News on Friday will have a big impact on gold prices. Unless payrolls data on Friday is bad, it's not going to drive up prices based on expectations of QE.
Precious metals traded down with the movement of gold prices continued to show weakness in early trading in Asian session. Release of U.S. jobs data that misses the prediction failed encourage investor interest in gold. It is also due to comments from members of the central bank indicating that the new stimulus measures will not be done in the near future.
The price of gold at $ 1,652.10 / ounce, drop $ 1.60 from its closing level in New York, silver at $ 30.60/ ounce, down 5 cents, platinum at $ 1,558.50 / ounce, drop 50 cents and palladium at $ 664.80/ ounce, down 20 cents.
In terms of technical, gold resistance level in the range of 100-day MA at $ 1.670 / ounce.
Market players said the ADP data, does not seem strong enough to alter the view that good U.S. economic data recently has eroded expectations of additional quantitative easing by the Federal Reserve. The gold market is awaiting the data of April nonfarm payrolls on Friday for clues about whether the U.S. central bank will keep interest rates near zero for several years and use the stimulus to boost economic growth. News on Friday will have a big impact on gold prices. Unless payrolls data on Friday is bad, it's not going to drive up prices based on expectations of QE.
Precious metals traded down with the movement of gold prices continued to show weakness in early trading in Asian session. Release of U.S. jobs data that misses the prediction failed encourage investor interest in gold. It is also due to comments from members of the central bank indicating that the new stimulus measures will not be done in the near future.
The price of gold at $ 1,652.10 / ounce, drop $ 1.60 from its closing level in New York, silver at $ 30.60/ ounce, down 5 cents, platinum at $ 1,558.50 / ounce, drop 50 cents and palladium at $ 664.80/ ounce, down 20 cents.
In terms of technical, gold resistance level in the range of 100-day MA at $ 1.670 / ounce.
Wednesday, May 2, 2012
Improved Performance of U.S. Manufacturing, Gold Down
Gold prices climbed on Monday in the improving technical outlook which can increase the gain last week, but gold closed slightly down for the month of April. Gold fell about 0.2% in April, for the third month and the longest monthly decline since 2000. A number of strong U.S. data and waning hopes of additional stimulus from the Federal Reserve has eroded the investment interest in gold.
Gold declined from a high level of 2 weeks on Tuesday as the dollar rallied due to the U.S. manufacturing sector data better than expected, dismissed speculation that the Federal Reserve will again ease monetary policy to boost the economic growth. The increase in U.S. manufacturing activity would provide additional evidence would not need further monetary injections from the Federal Reserve.
Without confirmation of support from the Fed on the U.S. economy, the rise in gold can be limited in the short term. In the near future, I do not see the possibility of gold through the $ 1700 level. Gold needs a catalyst to continue the rally. Can say, the level of $ 1.700 per troy ounce and above require other potential catalysts that trigger the Quantitative Easing (QE). It is definitely a very loose monetary policy would continue, but whether there is a need for QE III.
However, I do not see the potential for a significant fall in gold prices. Gold seems to have scored the lowest prices, and this can be a good start to add precious metals ownership.
We are in a condition where the market does not just follow the fundamentals, but more dependent on the market sentiment. The latest news is very influential on the price movement of gold.
The latest news is being awaited: release of U.S. payrolls data on Friday. This news would be one of the things that affect the price of gold. This news would be one of the trigger price of gold. If it's a bad news would raise the price of gold.
Gold declined from a high level of 2 weeks on Tuesday as the dollar rallied due to the U.S. manufacturing sector data better than expected, dismissed speculation that the Federal Reserve will again ease monetary policy to boost the economic growth. The increase in U.S. manufacturing activity would provide additional evidence would not need further monetary injections from the Federal Reserve.
Without confirmation of support from the Fed on the U.S. economy, the rise in gold can be limited in the short term. In the near future, I do not see the possibility of gold through the $ 1700 level. Gold needs a catalyst to continue the rally. Can say, the level of $ 1.700 per troy ounce and above require other potential catalysts that trigger the Quantitative Easing (QE). It is definitely a very loose monetary policy would continue, but whether there is a need for QE III.
However, I do not see the potential for a significant fall in gold prices. Gold seems to have scored the lowest prices, and this can be a good start to add precious metals ownership.
We are in a condition where the market does not just follow the fundamentals, but more dependent on the market sentiment. The latest news is very influential on the price movement of gold.
The latest news is being awaited: release of U.S. payrolls data on Friday. This news would be one of the things that affect the price of gold. This news would be one of the trigger price of gold. If it's a bad news would raise the price of gold.
Tuesday, May 1, 2012
Physical Gold Demand in India Declined
Gold futures contracts fell for three consecutive months following the concerns of physical demand in India declined and the Spanish economy entered recession in the second condition since 2009. Investors prefer cash now considering European.
Gold futures contract for June delivery slipped 60 cents to 1664.2 per troy ounce (equivalent to 31.1 grams) on Monday (4/30/2012) at 1:44 PM, at the Comex in New York. This price has dropped 0.5 percent in April. The price has declined for 3 months is the longest decline since March 2001.
Physical gold demand in India in the festival Akshaya Tritiya, which is a momentum to buy gold in India last week, demand for physical gold was disappointing. This condition was exacerbated by the strengthening U.S. dollar against euro after reports that Spain's economy declined during the first quarter of 2012. In terms of physical demand, purchasing gold in India was not shining. that's the problem.
Gold futures contract for June delivery slipped 60 cents to 1664.2 per troy ounce (equivalent to 31.1 grams) on Monday (4/30/2012) at 1:44 PM, at the Comex in New York. This price has dropped 0.5 percent in April. The price has declined for 3 months is the longest decline since March 2001.
Physical gold demand in India in the festival Akshaya Tritiya, which is a momentum to buy gold in India last week, demand for physical gold was disappointing. This condition was exacerbated by the strengthening U.S. dollar against euro after reports that Spain's economy declined during the first quarter of 2012. In terms of physical demand, purchasing gold in India was not shining. that's the problem.
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