Gold Price Movements
Gold prices rose +0.4% yesterday, as the prices hovered near the new resistance/support level of $1,185 before the FOMC press conference. Gold inched higher amid a weaker dollar after manufacturing activity in the US appeared to have deteriorated.
Greek fatigue continues to grip the market as the prospects of a Grexit now appears underwhelming compared to the draggy and wishywashy acts of the Europeans. The gold market is now seemingly immune to the developments in Greece as its eyes are firmly fixed on Thursday’s FOMC press conference. Don’t let that fool you, however; if Greece really does leave the exit door, no amount of fatigue is likely to hold back a rally in gold prices as investors scramble for safety.
Until that happens, at the risk of sounding like a broken record, the focus for gold will be very much on the FOMC press conference this Thursday morning. I may have been saying the same old thing over and over again since the start of this year but sadly, the rate hike appears to be the one major event most markets are looking at.
We still think it is September – avid readers of my column would know I have been saying this for some time now. The IMF’s and World Bank’s beliefs that the hike should only take place in 2016 are, shall we say, out of the ordinary, and are highly unlikely to influence the Fed’s decision.
US housing starts today will be the last major release before Thursday’s FOMC press conference. In the meantime, expect the dollar to strengthen and in effect, push down gold prices, especially now that it has crept above $1,185. Watch out for a sharp decline in gold on Thursday morning.
|Real time Gold Prices (Showing in China Beijing Timing)|
Whether you are a trader or a market-watcher, the FOMC will prove to be highly interesting. I honestly can’t wait. (Read Report)
Source : Phillip Futures Pte Ltd