FRIDAY: The gold trade has been cited on the blink of gain and loses today as royal yellow metal struggles with plunging global stock alongside dollar that rebounds on bull track.
INSIGHT: Investment in the Euro-zone remains far below pre-crisis levels, partly due to problems in the banks. It may be out of immediate danger, but it is not in robust health, as per Organization for Economic Co-operation and Development (OECD) – source: British Broadcast Corporation.
Exclusive data obtained from Market Watchers cite (for readers’ concern):
|Gold for August delivery (GCQ6) lost worth 0.1% i.e. bearish at $1,272.50/ounce. But a 2.5% weekly gain – best since week ended on 29 April 2016|
|SPDR Gold Trust (GLD) hiked about 0.1% prior trade session|
|VanEck Vectors Gold Miners (ETF GDX) hiked about 0.7% prior trade session|
|Silver for July delivery (SIN6) gained worth 0.2%, i.e 4 cents; marching towards 5.8% weekly gain – best in nearly 8 weeks / in accord to FactSet|
|iShares Silver Trust (SLV) drooped than 0.1% prior trade session|
|US Dollar index (DXY) gained worth 0.3%|
Certainly global commodity-dominant currency once gains strength, makes royal metals like gold less valuable – hence buyers with other monetary units opt not-to buy strategy and
The Dollar has remained on bear track since there had been no signal from the Federal Reserve to go for an interest hike.
“Gold is having an inside day, pausing to consolidate recent gains in the $1,264 to $1,270 range.” – CMC Markets’ chief market strategist, Colin Cieszynski
“Clearly then, the underlying trend is bullish even if gold is effectively still in a larger consolidation” – Forex.com and City Index’s market analyst, Fawad Razaqzada
UPDATE: Gold has risen back above the 21-day exponential and 50-day simple moving averages. These moving averages are pointing higher and are above the slower 200-day moving average (source: Market Watch).