The metal dips 1% on Wednesday’s session after hawkish music hits the wires. The metal lost almost 15$ after several hawkish sounds delivered from Fed officials.
Boston Fed President Eric Rosengren said that the market is underestimating the potential Fed rate hikes, if improved economic data in line with expectations, the Fed should raise interest rates.
The world’s largest gold ETF – SPDR GOLD TRUST positions increased by 0.39% from the previous day to 845.19 tons.
Old Mutual Gold & Silver’s Ned Naylor-Leyland said, “very happy to see the first quarter of 2016, gold demand is so strong, especially in Western financial centers, had been depressed for three years.” “Emerging gold demand support London paper gold a lot of counter transactions, we saw physical gold ownership in the West there is an upward trend, which is an important structural change. ”
BMO capital markets are now added to the gold price forecast raised the camp, the bank on Thursday released a report that is expected this year, gold rose to $ 1,400 / ounce, silver will rise to $ 21 / ounce.
OCBC Bank economist commodity Barnabas Gan said, “We had predicted for the end of 2016 the gold price $ 1,100 / ounce raised to $ 1,200 / ounce, due to federal funds futures show the Fed rate hike this year, twice extinguished.” Barnabas Gan was once one of the economists predict the most accurate gold.
Wells Fargo economist John Silvia, led the team, said that the FOMC will not raise interest rates in June, maybe later in the December rate hike; if in September prior to action will require a more robust US economic data to a large extent, and Fed officials change argument; FOMC is expected to raise interest rates three times in 2017, expected to take action four times before.
“King of new debt” Gundlach: many Fed officials, the main Xi Yelun stance on interest rates is the most dovish.FOMC in 2016 the possibility of a rate hike is 50:50.
The 20Dsma has been acting as a lifeboat to the price. The metal took support at 20Dsma for three times including today on Asian session. Besides, 200Wema earlier crucial resistance now turned as support find at $1,257.00
If the price closes below $1,256.00 by the end of the day (today) further downside retracement expected in the coming days. Alternatively, until the price holds $1,256.00 retracement expected towards $1,280.00 again.
Trading support finds at 1265.00, 1259.00 and 1256.00
Resistance seems at 1270.00, 1274 and 1281.00
On the four-hour chart, 200 moving averages find between $1,255.00 and $1,250.00
What’s on today?
U.S-Retail Sales m/m, Core Retail Sales m/m, PPI m/m and Prelim UoM Consumer Sentiment
Commerce Department report is expected to show that US retail sales probably increased in April for the first time this year, according to a Bloomberg survey.
Photo: REUTERS/GARY CAMERON