The precious metal lost the shine on Wednesday as well extended the losses on Thursday’s Asia session dips to 1%.
The world’s largest gold ETF – SPDR GOLD TRUST positions to reduce the 0.62 percent the previous day to 810.08 tons. Concern is the world’s largest gold exchange-traded fund SPDR Gold Trust holdings over the previous day to reduce 5.06 tons, to 810.08 tons. Month record biggest one-day reduction reported by Goldtoutiao.
Investment bank Credit Suisse released a report that the long-term gold price of roughly $ 1,200 an ounce level, as the level of prices will remain relatively balanced supply and demand situation. By early 2018, real interest rates began to rise, the price of gold is likely to appear callback.
The US rating agency Standard & Poor’s and investment bank Goldman Sachs on Wednesday lowered its average GDP growth in the United States, the US Standard & Poor’s 2016 real GDP growth forecast down from 2.7 to 2.3%; 2017 is expected to be reduced from 2.6 to 2.5 percent. Goldman Sachs first-quarter US GDP growth forecast from 0.9 to 0.8 percent.
Credit Suisse analyst Michael Slifirski and Nick Herbert said in a report Wednesday recalled its quarterly foreign exchange and commodities, the price of gold will hit $ 1350 / oz peak levels in the first quarter of 2017. The report further noted that, before the global economy stabilizes and get rid of the shadow of recession, gold prices may continue to rise. Credit Suisse expects the gold price correction will occur in early 2018, because then real interest rates began to turn higher. Credit Suisse analysts said their long-term forecast for gold at $ 1,200 / ounce, gold prices because of supply and demand to be relatively balanced at this level.
What’s on today?
Traders focus on March inflation.
US March CPI and initial jobless claims due on the US session.
March inflation expected to accelerate to 1.2% on a year on year basis from February’s 1.0% . Market participants expect the core inflation to remain at 2.3%.
The price is trading at $1,235.70 low made at $1,229.30 recovered 6$ from the intraday lows.
Parallel support finds at $1,229.00,$1,227.00 and $1,225.00 levels alternatively, $1,236.50, $1,240.00 and $1,244.00 acting as resistance during Asia session.
On Tuesday’s article, we forecast the metal price entered the resistance zone fell 33$ or 2.6%.