Gold futures were steady on
The price of gold was almost flat in Asia on Friday to win the regional data light with investors now look forward focused on the Federal Reserve will be indicative of future regarding the US economy is chugging along as expected although Brexit.
On the Comex division of the New York Mercantile Exchange, gold for August delivery rose 0.07% to $ 1,331.95 per troy ounce.
Silver futures for September delivery rose 0.30% to 19.875 per troy ounce, while copper for September delivery fell a tad to $ 2.259 per pound.
Overnight, gold bounced off a three-week low after the European Central Bank stood pat on Thursday, as Mario Draghi stressed that policy makers need more time to assess the long-term impact of the decision of the UK to leave the EU before deciding whether to implement further easing measures ,
Despite the recent decline, gold is still up over $ 70 per ounce since the decision jolted markets worldwide. More broadly, the precious metal rose more than 24% since January 1 and on pace for the strongest year over the last decade.
Gold tends to get support at $ 1,253.70, the low of June 24 and met with resistance at $ 1,368.60, the high of July 7.
On Thursday, the ECB Governing Council left its benchmark rate of interest, as well as the speed and duration of quantitative easing program unchanged to receive more clarity about the implications of Brexit on the economy of the euro area as a whole. While acknowledging that the decision U.K. has provided headwinds to the economic outlook for the euro zone, Draghi emphasized that the Governing Council could move as soon as September if action is needed to boost the economy.
Draghi also downplayed expectation that the departure U.K. could shave as much as a 0.5% annual GDP growth across the euro area, noted that the duration and outcome of negotiations between the parties could take take years to be resolved.
The Federal Open Market Committee (FOMC) meeting in Washington next week’s meeting of July for two days. As labor and the US housing market has shown signs of improvement in recent weeks. The Federal Reserve has kept its benchmark interest rate fixed at each of the four first meeting this year since raising short-term interest rates 25 basis points in December.
Any increase in interest rates by the Fed this year is seen as bearish for gold, which is struggling to compete with high yield bearing asset in the period of rate increases.
Resistance: 1330.95 1333.50 1336.25 High / Low: 1337.85 / 1325.15
Support: 1328.20 1325.65 1324.95 Running Price: 1330.55
Comment: For intraday trade today suggest Buy at 1333.95; stop loss at 1333.35; targets at 1335.15.
The yen weakened in Asian trade
The yen edged up at the opening of the Asian market because of the PMI data was quite good.
Japan’s manufacturing PMI report for July while with the expected level of 48.3, slightly higher than 48.1 in June.
USD / JPY was changing hands at 105.91, up 0.05%, while the AUD / USD was trading at 0.7501, up 0.11%. The euro rose 0.02% to 1.1028.
The US dollar index, which measures the strength of the greenback against a trade-weighted basket of six major currencies, last quoted at 96.91.
Overnight, the dollar swallow losses against other major currencies on Thursday, as the US housing sector data provide strong support and as an optimistic statement by European Central Bank President Mario Draghi failed to ease fears of sustained global growth.
The data showed that US existing home sales rose 1.1% in June to 5.57 million units from 5.51 million units in May, revised from the initial reading of 5.53 million. The consensus forecast for a 0.5% decline to 5.48 million units.
The report comes after the US Department of Labor said the number of individuals filing for initial jobless benefits in the week ending July 16 fell 1,000 to 253,000 from the previous week’s total of 254,000. Analysts expect the jobless claims increased by 11,000 to 265,000 last week.
Separately, the Federal Reserve Bank of Philadelphia said that its manufacturing index fell to -2.9 this month from a reading of 4.7 in June. Analysts had expected the index to increase to 5.0 in July.
At the end of the policy meeting, the ECB kept its benchmark interest rate unchanged at a record low 0.0%, in line with forecasts.
Commenting on the decision, ECB President Mario Draghi said the euro zone recovery is facing some headwinds and risks remain skewed to the downside, citing the UK referendum, slowing emerging markets and the slow pace of structural reforms as the main threat.
Draghi also said that the European market weathered the volatility of the post-Brexit with “encouraging resilience”, but reiterated that the central bank stands ready to act using all the instruments available under its mandate if necessary.
Resistance: 105.79 106.02 106.35 High / Low: 107.44 / 105.42
Support: Running 105.9 105.23 105.41 Price: 105.65
Comment: For intraday trade today suggest Buy at 105.85; stop loss at 105.25; targets at 106.85.