Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Gold Slides to Fresh Monthly Low- $1739 Estimated Range Low  Join our daily free Newsletter

MENAFN - DailyFX - 12/10/2012

No. of Ratings : 0
Add to Mixx!


Gold_Slides_to_Fresh_Monthly_Low-_1739_Estimated_Range_Low_body_Picture_1.png, Gold Slides to Fresh Monthly Low- 1739 Estimated Range Low

Fundamental Forecast for Gold: Neutral

Gold was softer at the close of trade this week with the precious metal shedding 1.8% to trade at 1754 at the close of trade in New York on Friday. While further weakness is likely in the near-term, losses are likely to remain limited as central banks around the world continue to strike a dovish outlook for monetary policy amid ongoing concerns regarding global growth prospects. As such, we will remain neutral at these levels after prices triggered our primary objective at 1795, with pullbacks likely to offer favorable long entries.

The Fed’s beige book released earlier this week struck a more upbeat tone than expected with all twelve Fed districts reporting that economic activity “expanded modestly” with improvements seen in manufacturing and housing. Although employment remained little changed, the report marks the first time all twelve districts reported improvements in underlying economic activity with some districts citing improvements in residential real estate conditions as existing home sales and residential construction strengthened. While the report bodes well for the US economy, the data is unlikely to weigh on monetary policy in the near-term as Chicago Fed President Charles Evens has already explicitly cited intentions to maintain an accommodative stance so long as the unemployment rate remains above 7% and inflation below 3%. As such, it’s likely that gold will remain in demand as a hedge against inflation amid global central bank easing.

Looking ahead to next week, gold trader will be closely eyeing inflation data on Tuesday with September CPI expected to up-tick to 1.9% y/y from 1.7%. Core prices (ex food & energy) are expected to rise to 2.0% from 1.9% and a stronger than expected print could further support gold prices as demand for the precious metal builds on concerns over faster price growth. Inflation data out of China on Sunday night may also impact prices with consensus estimates calling for CPI to ease to 1.9% from 2.0%. Should the data heighten the threat for a ‘hard landing’, gold may continue to ease in the near term as concerns regarding global growth prospects outweigh expectations for further central bank easing. Although Premier Wen Jiabao has called for additional monetary support from the PBoC, there has been no indication that the central bank is poised to do so and accordingly, the data may ultimately stoke fears for a ‘hard landing’ in the world’s second largest economy.

From a technical standpoint gold looks to have started a correction lower with critical near-term support seen at the confluence of key Fibonacci levels at 1739. Longer-term prospects remain bullish with only a break below this level invalidating our directional bias. Such a scenario risks declines to 1715 pivot level and the 61.8% Fibonacci extension taken from the December and May lows at 1693. We remain neutral at these levels while noting interim resistance at 1775 and the 100% extension at 1795. Daily RSI now looks poised for a test of the 50-mark with a break below this level suggesting that a more substantial correction may be underway. A breach back above the weekly high at 1780 looks to a test of the yearly highs at 1796 with subsequent topside targets eyed at 1840 and 1860. -MB


  MENA News Headlines
Apr 24 2014Qatar- HH Sheikha Moza Meets Mayor of Kobe Visits RIKEN Research Institution ,Qatar News Agency
(MENAFN - Qatar News Agency) Kobe April 24 - Her Highness Sheikha Moza bint Nasser Chairperson of Qatar Foundation for Education Science and Community Development (QF) today held a meeting with the ...

Apr 24 2014Qatar- Sidra-BMC Event Boosts Biomedical Research Publishing ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - A symposium organised jointly by Sidra Medical Research Centre and BioMed Central (BMC) mulled trends in research and on open access publishing here ...

Apr 24 2014Qatar- Mannai Corp Q1 Net Profit up 73% to QR 150.1 Million ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - Qatar Exchange listed Mannai Corporation (QE: MCCS) net profit is up 73% to QR 150.1 Million for the first quarter of fiscal year 2014 ending March 31 ...

Apr 24 2014Bahraini firms forecasted to grow 10 pct ,MENAFN
(MENAFN) In a report based on a study of over 650 companies across GCC, Kuwait Financial Centre (Markaz) forecasts a growth of the Bahraini companies' earnings by 10 percent in 2014, Gulf Daily News ...

Apr 24 2014Israeli Army Storms Deir Samit Village West of Hebron ,Qatar News Agency
(MENAFN - Qatar News Agency) bron April 24 - Israeli army forces stormed at dawn Thursday Deir Samit village southwest of Hebron city in the West Bank. The Israeli forces conducted raid and search ...

Apr 24 2014Qatar Airways to add more seats on Doha-Vienna route ,MENAFN
(MENAFN) Qatar Airways plans to offer more 1.700 seats on its Doha-Vienna route beginning from September 2014, according to Gulf News. The company aims to expand the growing passenger demand from ...

Apr 24 2014Qatar- QFC Authority Five-a-Side Football Tournament Kicks Off ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - Qatar Financial Centre (QFC) Authority's first Five-a-side Football Tournament is displaying dribbling skills of executives from Doha's financial ...

Apr 24 2014Qatar Stock Exchange Down 0.05% ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - The Qatar Exchange ended in the red area when trading closed Thursday at 12954.93 points (0.05%) down 6.63 points from the previous closing of 12961.56 ...

Apr 24 2014Israeli Tanks Enter Gaza Border area ,Qatar News Agency
(MENAFN - Qatar News Agency) Gaza April 24 - Six Israeli military tanks on Thursday entered a border area in the southern Gaza Strip witnesses said. The tanks crossed into Gaza in an area called ...

Apr 24 2014President Salva Kiir Relieves his Chief of the General Staff ,Qatar News Agency
(MENAFN - Qatar News Agency) Juba April 24 -South Sudanese President Salva Kiir relieved Chief of the General Staff of south sudan army James Hoth Mai. This came in a presidential decree aired ...

Apr 24 2014Afghan Guard Shoots Dead 3 Foreigners in Hospital ,Qatar News Agency
(MENAFN - Qatar News Agency) Kabul April 24 - Three foreigners including a doctor were shot dead and their colleague wounded when a guard of a private Cure Hospital opened fire on them in the ...

Apr 24 2014Uruguay Public Health Minister Meets HE Qatari Ambassador ,Qatar News Agency
(MENAFN - Qatar News Agency) Montevideo April 24 -Minister of Public Health in Uruguay Maria Susana Mu?iz met here on Thursday with HE qatari ambassador to the republic of Uruguay mohamed hassan ...

Apr 24 2014King bids to reassure Saudis as MERS deaths hit 85 ,AFP
(MENAFN - AFP) King Abdullah was in the Saudi commercial hub of Jeddah on Thursday in a bid to reassure a worried public as the death toll from the MERS virus hit 85. The Red Sea city has seen a ...

Apr 24 2014Georgian Justice Minister Leaves Doha ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - HE Minister of Justice of Georgia Tia Tsulukiana left Doha on Thursday morning wrapping up a two-day official visit to the country. An agreement on ...

Apr 24 2014Omani non-oil exports to enter African markets ,MENAFN
(MENAFN) A senior official at the Oman Chamber of Commerce and Industry (OCCI) said that the Sultanate is seeking expansion in new African markets, in a time it is looking forward to reduce its ...

Apr 24 2014US Secretary of State Meets Egyptian Intelligence Chief ,Qatar News Agency
(MENAFN - Qatar News Agency) shington April 24 - US Secretary of State John Kerry has met with the Egyptian Intelligence Chief Major General Mohammed Ahmed Fareed al-Tohami who is currently ...

Apr 24 2014Egypt's Interim President Receives Phone Call from South African President ,Qatar News Agency
(MENAFN - Qatar News Agency) Cairo April 24 - Egypt's Interim President Adly Mansour has received a telephone call from President of the Republic of South Africa Jacob Zuma in which they discussed ...

Apr 24 2014Egyptian Premier Off to Chad ,Qatar News Agency
(MENAFN - Qatar News Agency) Cairo April 24 - Egyptian Prime Minister Ibrahim Mehlib left cairo on Thursday for Chad the first leg of a three-day two-state trip that will also take him to Tanzania ...

Apr 24 2014QBA strengthens economic ties with Kenya ,MENAFN
(MENAFN) Members of the elite Qatar Businessmen's Association (QBA) stated their willingness to cooperate with their Kenyan peers, strengthening economic ties between Qatar and Kenya, The Peninsula ...

Apr 24 2014Sharjah Ladies Club organizes "Sharjah Ladies run" at the University City ,MENAFN Press
(MENAFN Press) Sharjah Ladies Club gears up to launch "Sharjah Ladies run" at the Sharjah University City. With over 250 participants, the activity aims to encourage women and enable them to ...


Click to Apply



Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  

Middle East North Africa - Financial Network

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Investment Game
Economic Calendar
Financial Glossary

Portfolio Tracker


Financial Calculators

RSS Feeds [XML]

Corporate Monitor


Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters

© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help