FX & CFD trading involves significant risk
Gold prices declined moderately, interrupted in this case a series of seven-day increase, due to the weakening of the US dollar and expectations of the speech by Fed Yellen. Experts note that the precious metal may continue to fall, if the head of the Central Bank show hawkish attitude, thus stimulating the US dollar. It should be emphasized, despite today's decline since the beginning of the week gold has risen in price by about 1.3 percent.
Influenced the course of trading on US GDP data. As it became known, the US economy has slowed in recent months 2014 and corporate profits fell, noting weaker base preceding the apparent slowdown in the beginning of this year. Gross domestic product, the broadest measure of goods and services produced in the economy expanded at a seasonally adjusted annual rate of up to 2.2% in the fourth quarter, the Commerce Department said. The result was unchanged from the previous estimate last month. Economists had expected an upward revision to growth of 2.4%. The volume of production in the fourth quarter increased by 2.4% compared with a year earlier, slowing from an annual growth of 2.7% in the third quarter.
The report also said that corporate profits after tax, unadjusted inventory valuation and capital consumption fell by 3% compared to the third quarter. It was the largest quarterly drop in profits in the first quarter 2011. Profit in the fourth quarter increased by 2.9% compared with a year earlier, slowing from the 5.1% annual growth in the third quarter. The overall picture in the last quarter was mixed - consumer spending grew at the fastest pace since 2006, but business investment has slowed and reduced government spending.
Support prices still has a geopolitical tensions. Recall, the international coalition with Saudi Arabia and the Gulf states beginning in Yemen on Thursday night a military operation against insurgents Huthis controlling most of the country. The operation began immediately after the statement of the Cooperation Council for the Gulf States, which noted that Saudi Arabia, Kuwait, Bahrain, the United Arab Emirates and Qatar intend to respond to the request of President Hadi and protect the legitimate authority in Yemen.
"Gold becomes cheaper due to profit-taking and a slight weakening of the dollar. I do not think that traders want to open large positions if the situation in Yemen will not deteriorate," - said the expert Lee Cheong Gold Dealers Ronald Leung.
Meanwhile, an analyst Norbert Ruecker Dzhulias Baer said: "Geopolitics has never been something that can create a trend in gold prices, it is only a short-term deviation from the current trend."
Also today it was announced that the world's largest reserves of the gold-ETF-fund SPDR Gold Trust on Thursday declined by almost 6 tons to 737.24 tons, the lowest level since January.
May futures for gold on the COMEX today fell by $ 6.7 - up to 1196.60 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.