Gold prices declined moderately today, updating the minimum of 20 April, which was caused by the strengthening of the dollar. Nevertheless, at the end of the week yellow metal has risen in price by almost a percentage.
The US currency has risen significantly against the yen on speculation the Bank of Japan is considering the possibility of negative interest rates as part of its program of lending financial institutions. Central Bank now offers loans at 0% APR. As of April 10, the Bank of Japan gave in 2013 about 24.4 trillion yen. Basically, the money went to buy government bonds.
A slight influence also provided data on the US, which showed that the preliminary manufacturing PMI from Markit was 50.8 in April, compared to 51.5 in March, signaling the weakest rise since September 2009. Weaker industrial production and the growth of new orders, along with weaker growth in the number of staff were major factors in the PMI pressure in April. Last rise the level of production has been uneven and the slowest since the moment when the recovery began in October 2009. Producers relied mainly on subdued demand conditions, delays in decisions on the costs to customers and a constant disadvantage in the energy sector.
“After yesterday quotes rose to a five-week high, today the precious metal once again losing ground due to the growth of the dollar against the yen and the euro”, – said analyst ActivTrades Casa de Carlo. – Gold is likely to remain in the range, and only a close below $ 1225 will force the seller to increase the pressure. “
Meanwhile, analyst FXTM Otunuga Lukman said that in the future the price of gold could rise again because of the uncertainties associated with the global economy. Recall, gold recorded a maximum quarterly growth in nearly 30 years for three months in 2016 on expectations that the Fed will not raise rates this year due to market volatility and concerns about the Chinese economy. Recent data from China pointed to the recovery of industrial activity, investment and household spending, which increased the demand for metals used in manufacturing.
Also today, Goldman Sachs experts have maintained their “bearish” view on gold and other commodities, reiterating its recommendation to sell gold. “We still expect that the strengthening of the US labor market will force the Fed to raise rates three times this year, which will lead to a stronger dollar and a gradual increase in real interest rates in the US Against this background, the gold would be for the pressure.”, – The Goldman Sachs analysts .
The cost of the June gold futures on the COMEX today fell to $ 1244.8 per ounce.
The post Gold prices declined moderately appeared first on forex-analytics.press.