Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Monday, 27 February 10:53 (GMT -05:00)



Stock and commodities markets

All that glitters is not gold


 

Bond yields have risen again, the euro zone has been hit by a fresh wave of doubt over its ability to manage the sovereign debt crisis and the UK finds itself in recession once again, so why has gold fallen $40 per ounce this week?
 
To quote Shakespeare, “All that glitters is not gold; often you have heard that told”. Traditionally gold thrives in turbulent markets since it is regarded by investors as a safe haven asset, but a surprisingly strong U.S. dollar has quelled the price of gold. In fact the strong greenback has done more than just negate the euro zone impact; it has caused the price to retreat. As the graph below shows, gold has been locked in a downward trend channel this week. This is a perfect example of how one cannot hope to predict the movement of gold by looking at only one dimension; its valuation is the product of many variables.
 
Spot Gold (Dollars per ounce) for the week beginning April 30 th
 
The decline represents gold’s biggest weekly drop for a month as it plunged towards the psychological $1600 per ounce level.
 
The dollar has strengthened against a majority of major currencies resulting in dollar-priced commodities, such as gold, becoming weighed down. Far from the U.S, in India, a weak Indian Rupee has made dollar priced commodities relatively expensive for buyers, curbing demand in the world’s largest consumer of bullion.
 
U.S. non-farm pay rolls data fell short of expectations on Friday which did see gold briefly jump to $1640 per ounce; although moving outside the trend channel it almost instantly retreated back within the range. Lower than expected figures will further fuel speculation of more quantitative easing by the Federal Reserve, which would hurt the dollar and help gold reverse its recent losses.

 

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

OPEC Doesn't Like Russia's Pace of Oil Production Cut

As expected by international experts, the ambitious plan of cutting oil production by OPEC and other oil producers led by Russia are seeing some difficulties during the implementation phase. The OPEC is indicating slower-than-expected oil production cuts in 4 non-OPEC countries participating in the agreement.

 

 

 

Publication date: 19 February 11:29 PM

Mexico & US Cotton Trade Post-NAFTA - Dukascopy TV

2017 is a good year for Cotton farmers.

Louis Rose, President of Risk Analytics

Publication date: 15 February 06:29 AM

«A Trump Weak USD Good For Gold» - Dukascopy TV

Have fundamental drivers for gold changes since Donald Trump gained presidency?

Alasdair Macleod, Gold Money

Publication date: 15 February 06:25 AM

A Macro Insight to Moving Crude Prices - Dukascopy TV

Will Shell producers keep pumping oil?

Chris Kairinos, Rand Merchant Bank

Publication date: 15 February 06:22 AM

Economic Calendar by Dukascopy 15.02.2017

Wednesday, the 15th of February, is a busy day, so let's take a closer look with the Economic Calendar.
UK Labour Report for January is up first at 9:30 AM. The unemployment rate has stood at the same low level for the past 3 months, although it has had little effect on monetary policy.

Publication date: 15 February 06:17 AM

Economic Calendar by Dukascopy 14.02.2017

Tuesday brings plenty of high importance news releases, so let's take a closer look with the Economic Calendar.
The closely watched preliminary reading of German fourth quarter GDP is up first at 7. The third quarter data surprised on the downside, posting the weakest growth in 2 years.

Publication date: 14 February 08:00 AM

Could Canada Get Silicon Valley From Trumps H1B Visa Policy - Dukascopy TV

Policies that discourage immigration to the usa could be good for Canada if our policy makers take advantage of them.

USD/CAD Krishen Rangasamy, National Bank of Canada

Publication date: 13 February 10:21 AM

Economic Calendar by Dukascopy 13.02.2017

Hello traders, you're watching the Dukascopy Economic Calendar for Monday, the 13th of February.
The schedule actually starts on Sunday, as the closely watched preliminary fourth quarter Japanese GDP is out at 11:50 PM. The third quarter data came in stronger than expected, following a point 2% gain the previous quarter.

Publication date: 13 February 09:04 AM

Trump Tries To Strength Yuan - Dukascopy TV

President Trump will try to convince China to strengthen its currency, but they are already doing a lot.

Allan Von Mehren, Danske Bank

Publication date: 10 February 10:19 AM

Economic Calendar by Dukascopy 10.02.2017

Friday brings a number of known market movers, so let's take a closer look with the Economic Calendar.
Starting things off at 9:30 in the morning are two news releases regarding the UK economy in December, and Industrial Production is one of them. Output returned to growth in November, but the strong gain did come from several one-off factors and this release is expected to show a more modest increase.

Publication date: 10 February 08:02 AM