We can see the technical movement on the metal evident with investors locking on their gains with the metal stretched at record levels which with the strong dollar supported investors to take the metal lower as now gold seems as a risky buy.
Jitters are finding their place back in the market, and even as gold lost some of its risk premium with the death of Bin Laden it was not totally shunned as the dollar strength for now overshadows its demand, where we can see the risk aversion already rising in the market on fear over reprisal attacks following Bin Laden’s death.
Inflation pressures are rising in some nations and especially in the pacific, where despite the steady rates from the RBA India’s central bank moved rates higher by 50 bp and producer price inflation in the euro area accelerated at the fastest pace on the year in two-and-a-half years.
For now, gold is at high levels and the dollar is the main player and the rise in risk aversion and the dollar holding at its levels and compensating for the recent losses will keep profit taking on the metal.
More growth signals will be awaited for the market on Wednesday as investors start to eye signs of a slowing pace of global recovery. The services sector performance will be under the spotlight in UK, euro area, and the US. Also, the US ADP employment figures will be very critical for the sentiment as a strong indicator for markets ahead of Friday’s nonfarm payrolls.
Once again, the volatility will be evident for gold on Wednesday and with the rising uncertainty the dollar might hold its grounds and accordingly keep pressuring gold lower unless the sentiment once again shifts to positive which so far seems subdued.Original Post...
Gold prices Predictions, Gold prices estimated, Interes rate of Gold prices, haigh Gold prices, will Gold prices indicator for markets For the latest updates PRESS CTR + D or visit Stock Market news Today
No comments:
Post a Comment