Gold off a seven week high, into new price parameter

The gold price was at $1,266.02 this morning, marking a come down from a previous seven week high of $1,273 last night. Gold’s robust outlook and price pick up has been largely attributed to the weaker economic data coming from the US, offsetting the prospect of any significant interest rate hikes by the Federal Reserve.

“We expect prices to trade range bound for the day, as downbeat US data weakened the prospect of the Federal Reserve pursuing an aggressive rate hike stance,” a spokesperson for India’s Nirmal Bang Commodities told the Economic Times.

The rise in the price of gold has led to lower demand in the Asian sub-continent. “Indian gold traders estimate that the significantly higher gold prices in recent weeks have cooled demand, as has the introduction of the goods and services tax on gold purchases,” said a Commerzbank note, reported in ScrapRegister.

The gold price now seems to have new parameters according to some analysts. ANZ analyst Daniel Hynes spoke to Reuters saying it’s going to be difficult for gold to break out of (its) range for the next week or two.

“At the moment, the upside looks a little bit limited. We’re seeing obviously some increase in net long-positioning in the market, but we’re seeing some selling come through on the ETF [exchange traded funds] side as well.”

U.S. gold futures for December delivery declined 0.6 % to $1,272.30 per ounce.

Link to this article: : http://www.goldmadesimplenews.com/gold/gold-off-a-seven-week-high-into-new-price-parameter-13318/

Posted by on Aug 2 2017. Filed under Gold News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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