Search

Client support: Phone: (+357) 22314160

FX & CFD trading involves significant risk

News

Show news:


25.06.2013 15:20

Gold continues to become cheaper

Gold prices decline moderately amid fears related to the reduction incentive program the Fed and cash deficit in China.

Prices rose in trading in Asia at the beginning of the day thanks to the comments of the two Fed officials who rejected the possibility of immediate termination of incentives, but the lack of interest from buyers and general uncertainty have caused the decline in prices.

HSBC Bank on Monday lowered price forecasts for gold in 2013-2014, taking into account the intentions of the Fed to reduce the volume of buying up bonds and weak prospects for economic growth in China. Credit Suisse has also lowered forecasts on Tuesday.

Futures in Shanghai on Tuesday fell 0.3 percent, pointing to weak demand in the market, ranked second in the world in consumption of gold after India. Demand in India is also reduced, as the government in an effort to reduce the trade deficit increased the import duty on gold.

Slowing Chinese economy may limit the ability of investors to buy precious metals. In addition, insufficient supply of credit in the financial system may force banks to sell the metal to get cash.

Investors also sold precious metals, based on the fact that the U.S. economy is stabilizing prompt the U.S. Federal Reserve cut the incentive program, which is now being spent every month $ 85 billion. The yield on 10-year U.S. Treasury bonds on Monday hit its highest level in nearly two years. Precious metals, which do not yield usually attract the attention of investors in times of low interest rates.

Bank Goldman Sachs on Monday lowered its forecast for gold prices this year and next, citing the improved outlook for the U.S. economy.

The analysts of the investment bank now expects gold will finish this year at $ 1,300 per ounce, which is 9.4% lower than the previous forecast. According to the bank, at the end of 2014 gold will trade at $ 1,050 an ounce, which is 17.3% lower than the previous forecast.

Analysts at BNP Paribas also downgraded its forecast and now believe that the average price this year will be 1405 dollars per troy ounce, which is 11% lower than the previous forecast. Although bond yields in the United States remains low by historical standards, "its growth is still contributing to the negative attitude" to gold, they said.

Stocks of the world's largest exchange-traded fund backed by gold (ETF) SPDR Gold Trust on Monday fell by 0.43 percent to 985.73 tonnes - the minimum level in more than four years.

The cost of the August gold futures on COMEX today dropped to 1270.70 dollars an ounce.

Market Focus

  • Donald J. Trump was inaugurated as the 45th president of the United States
  • Canada: Retail Sales, m/m, November 0.2% (forecast 0.5%)
  • U.S.: Nonfarm Payrolls, January 227 (forecast 175)
  • Eurozone: Consumer Confidence, January -4.9
March 2017
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010
  • 2009
  • 2008
  • 2007
  • 2006
  • 2005
  • 2004
  • 2003
  • 2002

Quotes

All posted material is a marketing communication solely for informational purposes and reliance on this may lead to loss. Past performance is not a reliable indicator of future results. Please read our full disclaimer.

To maximize our visitors browsing experience TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies. If you disagree, you may change your browser settings at any time. Read more

  • © 2011-2017 TeleTrade-DJ International Consulting Ltd

    TeleTrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.

    The company operates in accordance with Markets in Financial Instruments Directive (MiFID).

  • The information on this website is for informational purposes only. All the services and information provided have been obtained from sources deemed to be reliable. TeleTrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.

  • TeleTrade cooperates with SafeCharge Limited, which is an electronic money institution authorized and regulated by the Central Bank of Cyprus and is a principal member of MasterCard Europe and Visa Europe. We also cooperate with Moneybookers and Neteller, which offer electronic e-wallet services authorized and regulated by the Financial Conduct Authority.

    Please read our full Terms of Use.

  • To maximize our visitors browsing experience TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies. If you disagree, you may change your browser settings at any time. Read more

    TeleTrade-DJ International Consulting Ltd currently does not provide its services to residents or nationals of the USA, and also doesn't provide retail Forex and CFD accounts to residents or nationals of Belgium.

Connect with Us
Share on
social networks
Online
consultant
Request a callback
Top Page