FX & CFD trading involves significant risk
Gold prices rose today by more than two percent, reaching at this 4-month high, which was associated with an unexpected decision by the Swiss Central Bank to abandon the peg franc. In addition, the SNB lowered the rate on demand deposits to 0.75%.
Gold prices rose nearly 6 percent this month, after declining for two consecutive years, but the forecast for the current year remains uncertain.
"Gold demand in the background of the situation, because no one expected that the Swiss central bank to abandon the peg. This caused a noticeable fluctuations in the market, and obviously led to a flight to safe assets," - said the expert Saxo Bank Ole Hansen.
It is worth emphasizing, lower interest rates positive effect on gold, because it lowers the relative cost containment metal that guarantees investors a profit.
Meanwhile, the weakness of the dollar is also supporting gold, as it boosts the metal's appeal as an alternative asset and decreases in the value of dollar-denominated commodities for holders of other currencies.
A little pressure on gold have data on the United States. As shown by Philadelphia Fed report, in January PMI deteriorated markedly, reaching at this level 6.3 points compared to 24.5 points in December. It is worth noting that many economists expected a decline of this indicator only to the level of 20.3. All sub-indices fell in January: the index terms of delivery in January fell to -11.0 vs. -0.2 in December, the shipments index to -6.9 from 15.1, the new orders index to 8.5 from 13.6 in December, the index of inventories to 0.7 from 7.3, the employment index to -2.0 from 8.4 in December, the index of wholesale prices in January -0.2 against 9.8 in December, and the index purchase prices up 9.8 against 14.4 in December
We also add that previously reported showed that the number of Americans who first applied for unemployment benefits rose to its highest level in four months last week, noting a slight decline in the labor market, which has just published its strongest year for more than ten years. Initial claims for unemployment benefits rose by 19,000 and amounted to a seasonally adjusted 316,000 in the week ended January 10th. Economists had expected 299,000 new claims.
The cost of the February gold futures on the COMEX today rose to 1262.20 dollars per ounce.
|remaining time till the new event being published|
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.