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Gold analysis Thursday 6th of July 2017

Gold analysis Thursday 6th of July 2017 

 

The price of the yellow metal settled yesterday after the Federal Reserve Committee meeting, showing the increasing division among decision makers in the monetary policy of the Federal Reserve and this with regards to inflation expectations.

The record showed that the members of the committee are divided in views on the potential impact of inflation on the pace of increase in the price of future interest, which had an impact on the rise in gold during yesterday's trading.

It should be noted that the yields of US government bonds have seen a sharp rise over the past period at the same time we have seen hints of a number of members of the reserve committee refers to the continuation of monetary tightening policy, which some observers interpreted to indicate that the members of the Committee are not sensitive to weak economic data and low inflation rates.

Looking ahead, today's Non-Farm Payrolls (ADP) is expected to add 184,000 jobs in June versus 253,000 in May.

Today, the Purchasing Managers' Index (PMI) in the non-manufacturing sector, issued by the Institute of Supply will be released, with market expectations of 56.5 versus 56.9.

Technically

The rally above 1225 might be a support for gold to try to rally towards the 200 SMA at 1233 and if breaching this level it could extend towards the 100 SMA at 1248 and then 1250.

A decline below 1225 could cause a fall towards 1218 and if breached it could extend towards 1198 and then 1180

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