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The price of gold has grown considerably today, reaching a one-week high at the same time, due to the escalation of tensions between Russia and Ukraine. However, strong economic data the United States dropped the demand for safe-haven assets, which put pressure on the price of the precious metal.
Today it was reported that the Ukrainian president Poroshenko canceled a trip to Turkey because of "the invasion of Russian troops on the territory of Ukraine." Indicating the intention Poroshenko call for an emergency meeting of the organization of the UN Security Council and the Council of the EU to resolve the situation. We also learned that the President urgently convene a meeting of the National Security and Defence. Russia has not yet submitted any comments, but Moscow has repeatedly denied allegations that its troops conducting military operations in Ukraine.
As for the data on the United States, they have shown that in the second quarter growth of the American economy has been more resilient than previously thought, putting the recovery back on track. Gross domestic product (overall goods and services produced in the economy) rose to a seasonally adjusted annual rate of up to 4.2% in the second quarter, said on Thursday the Ministry of Commerce. DOC previously estimated growth rate in the second quarter to 4%, based on incomplete data on international trade, stocks and other sectors. Economists had expected growth for the second quarter will be reduced to 3.9%. Positive data fueled optimism about the state of health of the economy and reinforced expectations that the Fed will raise rates earlier than previously thought.
"Adverse factors for gold is more than favorable, at least in the short term. Demand among investors and jewelers are still weak, although there are signs of increasing in India, "- said analyst Edward Meir INTL FCStone.
Demand in India, especially for silver, grew up in connection with the upcoming holiday season. The last two days the demand was high, but now all is quiet. The physical market in Singapore margins on gold bars are stable at $ 0.80-1.00 to the spot price in London.
From a technical point of view, today and in the coming days, the price of gold price dynamics will be limited to the level of support $ 1,280.0 an ounce resistance level $ 1300.0 per ounce.
The cost of the October gold futures on the COMEX currently increased to $ 1289.20 per ounce.
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