The metal pause the 3day falling streak manages to close with 8$ gain. After the FOMC minutes the metal fell 10$ rapidly manages to hold the $1,200.00 rebounds to $1,211.00.
Singapore’s largest commercial bank DBS Bank (DBS) that, due to the recent further US interest rate expectations have subsided, the market turmoil has not yet completely subsided, so the gold will continue to rise. Federal funds rate futures show that investors believe the Federal Reserve to raise interest rates before the end of this year the probability of only 34%.
Bullish views DBS Bank and Goldman Sachs is precisely the opposite. This old Wall Street investment bank, in fact, before also see more, said the price of gold “is expected to rise above $ 1200 / oz,” but after the recent return to risk sentiment, Goldman Sachs changed its position changed to appeal to investors shorting gold, said the recent gold is driven by panic unreasonable price rebound, gold market and other financial markets have exaggerated China’s economic slowdown, lower oil prices and the impact of negative interest rates.
Goldman Sachs still expects the Fed will raise interest rates further, and down the next three months the price of gold is expected to 1100 US dollars / ounce, and down the next 12 months target price of gold to $ 1000 / ounce.
What’s on today?
Philly Fed Manufacturing Index
Philadelphia Fed Business Outlook- UBS, which expects the index to come in at 0.0 for February, write that, “If factories are finally finding demand for their products, the inventory correction will begin to weigh less on overall growth.”
Initial Jobless Claims- Analysts at Bespoke write, “This relatively intuitive and simple series is extremely valuable, because unlike other employment data, it’s not a statistical sample. It’s true hard data; actual counts of real people.” The firm added that a sustained increase in claims would’ve increased concerns about recession, but last week’s reading “did a lot to assuage those fears.”