Gold dipped over 8.00 in today’s session, losing the gains of the last two day. With little market incentive, and an over positive sentiment trades are shedding gold and moving to other commodities. Although the Chinese GDP was disappointing but at forecast, the other reports released today showed a significant turnaround, especially in retail sales and fixed asset investments, as well as industrial production. There is a belief that the Fed’s will reduce their QE as the US seems to be showing signs of a positive recovery, even though the jobless data was mixed today.
The wild card right now is the EU Summit and decisions being made regarding Spain and Greece.
Also South African miners returned to work today after settling their strike. Indian gold buyers have increased their purchases during the wedding season, as prices dip.
Gold and silver today dropped for the first time in three days as gains by the dollar before European Union leaders’ summit on the region’s debt crisis reduce demand for bullion as a store of value. European Union leaders gather in Brussels for two days starting today, where Greek Prime Minister Antonis Samaras prepares to argue for a two-year extension to meet the country’s bailout targets.
French President Francois Hollande says efforts to stem the turmoil that began in Greece could unravel if the EU fails to deliver on its promises. The euro fell for the first day in three against the US dollar, declining 0.3 per cent.
recommendation: buy to gain a little, then wait for pullbacks to buy back up to 1770 area
0 comment(s):
Post a Comment