Gold Will be Data Dependent
Important numbers were out from the US which indicated a lot of things. There were signs of a deteriorating US economic data especially on consumer confidence and certain manufacturing data indicating shrinkage. Even though this had been the voice of many Fed Guv post the recent verdict from US Federal Reserve last Wednesday, the recession call stays unconfirmed, however it still remains on the table of leading economists. A surge and drop in gold and crude respectively could be a follow effect of this belief.
Gold prices inched higher on Thursday as investors resorted to bargain hunting after a sharp drop in the previous session, although a firm dollar limited the gains.
Spot gold was up 0.3% at $1,508.61 per ounce on Thursday. In the previous session, prices fell 1.8%, their biggest one-day percentage decline since Sept. 5.
Meanwhile, the release of a whistleblower complaint against Trump revealed more details behind the impeachment inquiry that the House of Representatives launched against him earlier this week.
The White House released a reconstructed transcript of a call between the president and his Ukrainian counterpart, where Trump is heard asking a “favor” before discussing a corruption probe in the East European nation that links to his political rival, former VP Joe Biden.
The news sent U.S. stocks lower overnight, but had little impact on the yellow metal.
While these 12 days might be crucial, at least for crude as I assume a sudden spurt on the upside. Indian equity markets are cooling off after a big rally after big rally but it might prove to be food for sustainable medium term.
As mentioned earlier, the gold which has second leg could attempt$1550 an ounce soon while $1531- $1532 is the support band.
Furthermore we have some important data awaiting –
- France CPI (EU Norm)
- Prelim YY
- EU Consumer Confid.
- US Consumption,
- Adjusted MM Aug
- US Durable Goods Aug
- US U Mich Sentiment Final Sept