Gold Flat to Begin Trading Week
Gold prices did not do much of anything on Monday to begin the new trading week. This likely comes as a bit of a disappointment to the gold bulls who were probably looking for some meaningful follow through after Friday's gains.
Gold prices moved higher on Friday and are currently trading just above the previous breakdown level of $1183. A mix of short covering and fresh buying saw the price of gold move to the upside from a consolidation pattern. Although this move above $1183 is of technical importance, the gold bulls still have a great deal of work ahead to attract more fresh buyers into the market.
This week will be somewhat busy from a data perspective. Investors will get the latest data on PPI, CPI, weekly jobless claims, manufacturing and more. Wednesday afternoon will be highlighted by the release of the latest FOMC meeting minutes. After putting a halt to its QE program, investors will look to the central bank for guidance on interest rates as well as the Fed's assessment on economic activity.
Outside markets continue to do the yellow metal no favors. The dollar index remains at four year highs while crude oil prices continue to look weak. Overnight, Japanese GDP data showed a decline in GDP. A gain in this key number was expected. This weakness in Japan, along with ongoing weakness in the Euro zone will likely keep the dollar index well-supported for the foreseeable future. This dollar strength may potentially continue to be a barrier to significantly higher gold prices.
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18 Nov 2014 | Categories: Gold