Learning Investment09 - Gold
futures prices declined again last weekend (3.18), reversing the increase
experienced before. The decline in the gold price is in line with the
strengthening US dollar. Moreover, global stock markets were able to reduce the
safe haven appeal of the precious metal, prompting market players to take
profits after a sharp rally on Thursday.
Gold
for April delivery fell by 10.70 US dollars, or about 0.9 percent to 2.9
percent after rallying in the previous day. In the Asian session this morning
(21/3), gold futures trading around 1,253.90 per ounce price level.
Colin
Cieszynski, Head of Marketing Strategy at CMC Markets told MarketWatch on
Friday, the movement of gold prices on Friday was a normal trading correction.
In addition, he also added that the movement of gold is quite strong lately,
and a lot of traders who do take profits before the weekend.
Not
only gold futures are declining, but silver futures were also down about 0:13
per cent, which is traded at the price of 15 790 US dollars. Meanwhile copper
futures for delivery in May traded at 2,278 dollars; The commodity price
decline of 0.35 percent.
American Economic doubtful
Investors
and economists have lowered their expectations for rate hikes as surprisingly
dovish outlook the Fed become too predictable and interest rates will not rise
before September. Regardless of the correction in gold prices last week, the
price of gold so far has gone up about 16 percent this year as investors seek a
safe haven in the face of unstable financial markets and fears the global
economy China is declining and making difficult the Fed to raise interest rate.
For
the week, market players will give their attention at the announcement of
fourth quarter US GDP as a new indication of the strength of the US economy.
Durable goods orders report (durable goods) and sale of residential (home sales)
will be the focus in line with the trend for investors to estimate if the world
economy is strong enough to withstand higher interest rates in 2016. In
addition, investors speech will also oversee a number of Federal Reserve
officials this week, namely James Bullard, Dennis Lockhart, Jeffrey Lacker,
Charles Evans and Patrick Harker.