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Gold futures rose sharply, allowing to recover all early losses , and update the session high. Such dynamics are related to the fact that many traders are waiting for the Fed meeting, which will take place this week, and can provide hints about the quantitative easing program , which plays an important role for gold.
Recall that this is the last meeting under the chairmanship of Ben Bernanke as Fed chairman , which increases the chances that any vital decisions would be taken , and the mission of reducing the program of "quantitative easing " the Fed will get a new chapter - Janet Yellen , which will come into office in February . Probably tone Bernanke comments will be soft , no surprises are expected . This would allow investors to finish the year on a positive note .
Meanwhile, experts say that with the approach of Christmas trading volumes in all markets begin to decrease considerably and the thin trading usually means that prices can move very rapidly and substantially .
The course of today's trading also affected the U.S. data , which showed that in December the index of activity in the manufacturing sector of the Federal Reserve Bank of New York rose to 0.98 , compared to -2.21 in November. Note that, according to the average forecast of economists , the value of production index would grow to a level of 4.9 . Recall that the index values above zero indicate expanding activity , and below zero - at its decline.
In addition, there was one more important report , which showed that in December preliminary index of business activity in the U.S. manufacturing sector Markit PMI showed a slowdown in expansion. The index fell from 54.7 to 54.4 , confounding forecast 54.9 , but kept in the area of expansion over the 50.0 mark key . The slowdown impacted by lower index of new orders component , with new export orders remained unchanged . Employment and procurement prices rose moderately .
Cost February gold futures on the COMEX today rose to $ 1242.10 per ounce.
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