Category Archives: Gold

Gold Looks Poised To Resume Rally

Fawad Razaqzada

Safe haven gold found strong support on Thursday in response to the falling equity markets and US bond yields, with the latter helping to accelerate the USD/JPY sell-off. Profit-taking at the start of Friday’s session saw these assets move in the opposite direction. Gold was thus a touch weaker at the time of this writing after Thursday’s big rally. It remains to be seen whether equities and/or the US dollar will come under renewed selling pressure as we move into the North American session. more…

Gold Steady Ahead Of US Jobs Data After Ending Best Quarter In Nearly 30 Years

Fawad Razaqzada

Ahead of the all-important US jobs report in the afternoon, gold has started the new quarter fairly quietly today after ending the last one 16 per cent better off. It was the best quarter for gold in nearly 30 years, helped by a depreciating US dollar and increased volatility in the equity markets. But as equities rallied in March, the safe haven gold struggled to push further higher even as the dollar weakened. All the same, it didn’t really drop off a cliff. more…

Gold Erases Overnight Gains As Stocks Stabilise, NFP Eyed

Fawad Razaqzada

Gold rallied to a fresh nine-week high of $1112 in overnight trading before dropping by a good $15 to trade back below $1100 at the time of this writing. The People’s Bank of China fixed the USD/CNY lower a day after the Chinese authorities decided to abort the circuit breaker after it was triggered twice this week following the big drops in Chinese stocks. This, as well as short-covering ahead of today’s US jobs report and the weekend helped to stabilise the stock markets which have had their worst ever start to a year in the US and the worst since at least the 1970s in Europe, according to Goldman Sachs. So, gold’s intraday drop is due to the slightly positive tone in the stock markets which has reduced the demand for safe haven assets such as gold. more…

Gold Advances As USD Pauses For Breath Ahead Of FOMC, GDP

Fawad Razaqzada

Gold is up for a second consecutive day and is trading around a good $1173 per troy ounce at the time of this writing. The rallying dollar has paused for breath ahead of the FOMC policy statement tonight and the US GDP data on Thursday, while the upsurge in equity markets have also slowed down, at least for the time being anyway. And with government bond yields in Europe falling further more…

Gold Shining Ahead Of Fed

Matt Weller

In contrast to the usually quite pre-FOMC trading, markets were surprisingly volatile Wednesday. US equity indices were all tacking on around 0.5-0.7%, the greenback is dropping, and commodities are rallying sharply. In addition to Wednesday’s big breakout in oil, Gold has also turned sharply higher, providing some relief for beleaguered bulls. more…

Will gold cross the critical “line in the sand” at 1140?

Matt Weller

The fallout from yesterday’s Federal Reserve minutes has been swift, and in some cases, dramatic. As my colleague Kathleen Brooks noted earlier today, the market saw the minutes as dovish, prompting Fed Funds futures traders to lower their implied probability of a September rate hike to just 38%, from roughly 50% beforehand. The dollar was the big casualty of the release: the trade-weighted dollar index has fallen back below its 50-day moving average near 96.25 as the yield in the benchmark 10-year bond retreated by 10 bps to 2.10%. Interestingly, US stocks, which would theoretically be expected to rally on continued low interest rates, fell nearly 1% yesterday and futures are currently pointing to another big bearish gap today. more…

Forget Super Thursday: it could be Black Friday for gold

Fawad Razaqzada

Now that Super Thursday is behind us, it could be a Black Friday for gold. Today’s much-anticipated jobs data could provide us a big clue in terms of when to expect a potential rate rise from the Federal Reserve. If the numbers are as strong as the ISM services PMI indicated on Wednesday then calls will increase for a September rate hike. This should help to give the dollar another shot in the arm, which in turn could weigh heavily on gold. Conversely, if the numbers are weaker than expected then the dollar could fall back, leading to a relief rally for gold. Admittedly, the dollar is just one among several factors that determine the direction of gold. But today, it will most likely be the main driver. more…

Gold: moment of truth

Fawad Razaqzada

We have repeatedly commented that gold’s near term outlook does not look bright because of the apparent lack of interest from investors worried about the crisis in Greece. Whereas the European stock markets have fallen quite dramatically in response to the deteriorating Greek situation, the precious metal has barely shown much reaction. Admittedly, this has been in part because of the strength of the US dollars, which has been climbing steadily higher this week in anticipation of Thursday’s US jobs report. As it turned out, more…