Gold @ 6-week low

 

Take a look at the gold price today. Down -1,24%, trading at $1,295,20. Silver is now below $20, trading at 19,67. Down -1,55%, followed by copper which is down -0,98%, trading at $298,15. Not good for the commodities at the moment, but that`s why I said I`m not bullish, but less bearish on commodities.

Gold

Gold prices fell to a six week low yesterday. Declining on more technical selling pressure. The Fed of St. Louis president James Bullard said the U.S economy is improving and sees the unemployment below 6% at the end of this year.

European stocks rallied yesterday, as the European Central Bank have an idea to embark on further monetary policy stimulus due to concerns about deflation in the Euro zone. In addition; the Fed issued a report that was deemed as less dovish than investors expected.

Bears next downside breakout price objective is closing prices below a technical support at $1300,00. It is the macro-news that drives the metal prices and the down trend in copper is in a three-month old downtrend in the daily bar chart.

In a new report released yesterday, Barclays have revised their gold price forecast for 2014 from $1205/oz to $1250/oz. Other average price forecast for 2014 from Barclays is silver, $19 an ounce. China has become the world`s largest gold-consuming nation, and Barclays expect the gold consumption will continue to grow.

A key for gold will be whether indian authorities ease restrictions on gold imports meant to control the current-account deficit. We think a decision likely will not be made until after the end of the fiscal year, and perhaps more likely not until after (spring) elections,” Barclays said. “Such a move would provide the next cushion of support for gold prices, in our view.”

We think the extent of the decline in copper prices is overdone since micro trends have likely bottomed, though macro concerns and stock overhang take some of the potential upside off our Q2 price forecast,” Barclays said. “China is now the biggest risk — in both directions.

Reports today:

08:30 AM ET Unemployment Claims
08:30 AM ET FOMC Member Pianalto Speaks
08:30 AM ET Final GDP q/q
08:30 AM ET Final GDP Price Index q/q
10:00 AM ET Pending Home Sales
10:30 AM ET Natural Gas Storage

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

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