In the near-term, the strength of the US dollar may keep down ward pressure on gold pirce. However, with the gold price now well below US $1,300/Oz again, physical demand from China and other emerging markets should start to play a supporting role, according to ETFS report.
LONDON: Gold prices weakened on strong US dollar as US payrolls surprised to the upside and China grwoth data also came in above expectations, accordign to ETF Securities Ltd. (ETFS).
In the near-term, the strength of the US dollar may keep down ward pressure on gold pirce. However, with the gold price now well below US $1,300/Oz again, physical demand from China and other emerging markets should start to play a supporting role, according to ETFS report.
Key events to watch this week
The US data calendar is light. Industrial production numbers for India, Japan, EU and the US will be released this week, with better than expected data likely to benefit the cyclical precious metals. Q3 GDP data for the Eurozone, Germany and France will be published this week, providing a clearer picture of the extent (or lack thereof) of the European recovery. The Eurozone Finance Ministers meeting will also be monitored closely as Europe remains the biggest risk to global stability. Perhaps of greatest market interest in relation to the longer-term commodity outlook will be any new policy initiatives announced following China’s Third Plenum meeting.
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