Karachi, December 11, 2017 (PPI-OT): Gold
Gold markets are likely to continue to go to the downside, if we break down below the bottom of the weekly candle that just printed. The $1250 level is the middle of the overall consolidation of the year, but we have broken through a significant trend line, and of course is pass we Close towards the bottom of the range. If we break down below the bottom of the candle, it’s very likely that we will see a continuation of the bearish pressure, and perhaps reach down towards the $1225 level, and more importantly, the $1200 level. A breakdown below there would be very negative for gold in general. Pay attention to the US dollar, if that continues to strengthen overall, we will see gold suffer. The US dollar has performed rather miserably during most of the year, so a rebound in the value the greenback makes sense, so gold could be soft for several weeks.
Gold is heading for the biggest weekly drop since May as investors anticipate higher US interest Rates
Progress on tax reform buoys the dollar, deepening a slump for the metal that touched a one-year high in September
Bullion has lost 2.6 per cent last week, the most since the period ended May 5
U.S President signed legislation to fund the federal government for two weeks
U.S job growth increased at a strong clip in November
Gold prices were steady early today in Asian trading session, holding above a four-month low hit last week, amid a firm dollar. Spot gold was nearly unchanged at $1,247.80 an ounce, after hitting its lowest since July 26 at $1,243.71 on Dec. 7.
U.S. gold futures were 0.1 percent higher at $1,250.10. The dollar was steady in early Asian trade today, underpinned by expectations of higher U.S. interest rates, while bitcoin seized the spotlight as futures of the cryptocurrency began trading.
Republican U.S. Senator Susan Collins, whose support was crucial in passing the Senate tax reform bill earlier this month, said on Sunday she has not yet decided whether she will back the final measure negotiated by House and Senate leaders.
U.S. President Donald Trump on Friday signed legislation to fund the federal government for two weeks, giving congressional negotiators more time to work out budget priorities through next September and other thorny policy matters.
A Palestinian stabbed an Israeli security guard at Jerusalem’s main bus station on Sunday, police said, and violence flared near the U.S. Embassy in Beirut over U.S. President Donald Trump’s recognition of Jerusalem as Israel’s capital.
The United States, Japan and South Korea will hold two days of missile tracking drills starting on Monday, Japan’s Maritime Self-Defence Force said, as tensions rise in the region over North Korea’s fast-developing weapons programmes.
U.S. job growth increased at a strong clip in November, painting a portrait of a healthy economy that analysts say does not require the kind of fiscal stimulus that President Donald Trump is proposing, even though wage gains remain moderate. Hedge funds and money managers sharply reduced their net long positions in COMEX gold.