US Data Deluge Leaves No Room for Improvement in Gold Prices

Gold Price

Amidst US Data Deluge, Gold prices experienced flat Thursday. Gold prices have been going downhill and are expected to follow the same trend for the coming few days.

December Gold futures as monitored in the Comex division of the New York Mercantile Exchange was steady at $1,323.50 a troy ounce. The day ended on somewhat somber mood vis-à-vis Gold Prices. At the end of the day, gold prices traded within fluctuations between $1,318.60 and $1,329.40.

Compared to last week wherein Bullion rallied at 2.4% it is on a weekly decline of 1.4%.

On the other hand according to the report highlighted in Economic Calendar, Silver rose by 0.4% which amounts to $19.19 a troy ounce.

The value of USD has an inverse impact on the prices of precious metals. Last week, Federal Reserves had kept their interest rates low which improved the prices of precious metals. People readily took advantage of Federal Reserve’s decision to keep its interest rates low to buy Gold.

Now, as USD gets back on road of recovery Gold Prices are expected to experience a decline.

US economy got the much-needed support from contribution brought in by exports and fervor on part of the consumers to spend more. This comes as a great relief especially when the value of USD did not see any significant improvement in past few weeks.

Many banks expect these Gold prices to rise as we move to the year end. The Global head of commodities research at Goldman Sachs, Jeffrey Currie, had mentioned the enhanced investment in Gold amidst political uncertainties looming large over the market. Many global issues also seem to impact the prices of these precious metals. Banks have been a bit skeptical with issues such as Brexit and other macroeconomic factors having a direct impact on the psyche of consumers as well as the on the market conditions.

Moreover, the majority of central banks across the globe, Japan, for example, are looking at ways to increase inflation with quantitative easing and side by side purchasing financial assets like bonds. In this market uncertainty, gold has proved to be the best investment ploy to deal with such attitude of banks considering the inflation risks.

Currently, the market uncertainties have created confusion both in the minds of investors as well as marketers. Once the outcome of presidential elections for one is announced, the economy can be steered in right direction. The mixed reactions by the US Fed officials have added to uncertainty. The impact of such reactions weakens the credibility of the market and the result is a loss of investors.

The market atmosphere also hinges on the oil prices. As the oil prices climb up it can lend some amount of support to bullion.

Report by Commerce Department on personal income and outlays for the month of August is being awaited with baited breath as it will highlight the increase in income from all sources by 0.2%. From July, the Personal Consumption Expenditure (PCE) index which is the most favored metric for the Federal Reserve is also to climb up by 0.2% from July.

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