Read the Beforeitsnews.com story here. Advertise at Before It's News here.

By BullionVault.com (Reporter)
Contributor profile | More stories

Story Views
Now:
Last hour:
Last 24 hours:
Total:

Gold Prices Fall, Silver Spec's Still Bearish as Attention Turns to the Fed

Monday, March 12, 2018 7:34

% of readers think this story is Fact. Add your two cents.

Adrian Ash is head of research at BullionVault, the world-leading gold trading & ownership service online…

GOLD PRICES started the week lower against a falling US Dollar on Monday, while equity markets surged after Friday’s strong US job data eased fears of inflation, writes Steffen Grosshauser at BullionVault.

With the US central bank expected to hike interest rates at its March meeting next week, gold fell 0.5% even as the Dollar dropped on the FX market, touching what technical analysts called “nearby support” at $1317 per ounce after finishing last week almost unchanged at $1323.

US data showed on Friday a strong increase of more than 300,000 new jobs in February but a slowdown in wage growth, easing concerns that the Fed could hike rates more quickly than expected.

Asian and European equity markets surged Monday morning to a 2-week high, with the Stoxx Europe 600 Index rising for a sixth day and setting its longest winning streak since October.

Silver tracked gold prices lower, falling back to $16.45 per ounce after also recovering last week’s earlier losses by Friday’s finish.

“We expect gold prices to trade lower on Monday as robust US nonfarm payrolls numbers boost global risk appetite,” according to Indian stock brokers Angel Commodities.

“We still are somewhat wary on gold short-term,” agrees brokerage INTL FCStone’s analyst Edward Meir, “as we suspect that the precious metal will struggle on account of a stronger Dollar…closer to the Fed meeting [next week].”

Hedge funds and other leveraged speculators modestly raised their bullish bets on Comex gold in the week to 6 March, according to the latest Commodity Futures Trading Commission (CFTC) data.

Remaining negative in contrast on silver futures and options overall for the fourth week running, the ‘Managed Money’ category held gold bets some 31% more bullish than that group’s historic average at the close of last Tuesday’s trade.

Investor interest meantime held unchanged last week in the world’s largest bullion-backed trust funds, the SPDR Gold Trust (NYSEArca:GLD) and the iShares Silver Trust (NYSEArca:SLV).

“[Gold] could be overwhelmed by headwinds of higher bond yields and a stronger US Dollar,” warns exchange-traded trust fund provider ETF Securities’ Maxwell Gold.

Bond yields slipped Monday, as did the Dollar. That helped cut gold prices for Euro investors back towards last week’s 2.5-month lows at €1065.

“Precious metals [will] follow the familiar pattern of selling off ahead of the Federal Reserve’s monetary policy decision and then rallying once investors gauge the underlying trajectory of interest rates for the rest of the year,” ETFS’s Gold believes.

But “the labour report that we saw in the US on Friday has spilled over into this week [and a] slowdown in the growth of wages last month has certainly eased concerns about more aggressive rate hikes,” says analyst Daniel Hynes at Australian bank ANZ.

Formerly City correspondent for The Daily Reckoning in London and head of editorial at the UK’s leading financial advisory for private investors, Adrian Ash is the editor of Gold News and head of research at BullionVault – winner of the Queen’s Award for Enterprise Innovation, 2009 and now backed by the mining-sector’s World Gold Council research body – where you can buy gold today vaulted in Zurich on $3 spreads and 0.8% dealing fees.

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

Source: https://www.bullionvault.com/gold-news/gold-prices-031220182

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).

Comments

Online:
Visits:	1,599,538,519
Stories:	8,139,505