Gold futures prices observed low
Gold drifted lower in Asian trade on Monday ahead of the PMI manufacturing data from China, with copper also fell on the eve of data from the world’s top importer.
In China, the semi-official manufacturing PMI, published by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing for July is expected to reach bang-50, the same as last month. The CFLP PMI non-manufacturing is also due, with the level last month at 53.7.
Then, Caixin manufacturing PMI is due to the expected reading of 48.7 for July, which was up a tad from 48.6 the previous month.
Gold for December delivery on the Comex division of the New York Mercantile Exchange fell 0.14% to $ 1,355.65 per troy ounce. Also on the Comex, silver futures for September delivery rose 0.27% to $ 20.402 per troy ounce. Elsewhere in metals trading, copper for September delivery dropped 0.31% to $ 2.222 per pound.
In the coming week, the US reported nonfarm payrolls and the ISM data on both manufacturing and service sector activity. As well, the rate announcement Thursday from the Bank of England will be in focus, amid mounting expectations the central bank will increase monetary stimulus to counteract the negative economic shock of sound Brexit.
Last week, gold prices rallied sharply on Friday, ending the session close to three weeks after data showed that the US economy grew at a slower pace than expected in the second quarter, prompting market players to roll back expectations of a rate hike from the Federal Reserve.
Progress reading the second quarter GDP showed an annual growth rate of 1.2%, well below expectations for 2.6%, the Commerce Department said on Friday. The first quarter GDP was revised lower to 0.8% from 1.1%.
The disappointing data reduced the threat of early interest rate hike from the Federal Reserve. Fed funds futures price is only 12% chance of a rate hike in September by late Friday. opportunities in December was at 33%, down from 43% the previous day and compared with 53% at the beginning of this week.
The Fed kept interest rates unchanged on Wednesday and said the short-term risk to the US economic outlook has diminished. However, the central bank stopped short of signaling that further interest rate hikes are on the cards for the US this year.
Gold is sensitive to movements in the US rate. A gradual path to a higher level is seen as less of a threat to the gold price from a series of rapid increases.
Technically
Resistance: 1352.65 1354.90 1355.18 High / Low: 1354.92 / 1327.71
Support: 1349.65 1347.00 1345.28 Running Price: 1350.00
Comment: For intraday trade today suggest Sell at 1347.90; stop loss at 1349.10; targets at 1345.90.
Aussie was lower in the trading
Aussie observed weak in Asian trade on Monday, despite a surprise jump in AIG manufacturing index and the yen fell in Asia on Monday coupled with Chinese manufacturing data into the spotlight.
USD / JPY is quoted at 102.36, up 0.32%, while the AUD / USD was trading at 0.7586, down 0.26%, with a wealth of currency is closely related to trade with China.
Australia AIG said its manufacturing index for July rose to 56.4, compared with last month’s figures at 51.8. The index rose further in July for a 13th month in a row and marked the longest period of expansion in more than a decade. recovery was mainly due to stronger exports and import substitution, aided by a more competitive exchange rate. Then came the HIA new home sales for the month of June with the latter figure fell 4.4% month-on-month.
In China, the semi-official manufacturing PMI, published by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing for July is expected to reach bang-50, the same as last month. The CFLP PMI non-manufacturing is also due, with the level last month at 53.7. Then, Caixin manufacturing PMI is due to the expected reading of 48.7 for July, which was up a tad from 48.6 the previous month.
In the coming week, the US reported nonfarm payrolls and the ISM data on both manufacturing and service sector activity. As well, the rate announcement Thursday from the Bank of England will be in focus, amid mounting expectations the central bank will increase monetary stimulus to counteract the negative economic shock of sound Brexit.
Last week, the US dollar fell against a basket of major currencies on Friday after data showed that the US economy grew at a slower pace than expected in the second quarter, while the yen surged after the Bank of Japan disappointed market expectations for more stimulus.
Progress read on US second quarter GDP showed an annual growth rate of 1.2%, well below expectations for 2.6%, the Commerce Department said on Friday. The first quarter GDP was revised lower to 0.8% from 1.1%.
The disappointing data reduced the threat of early interest rate hike from the Federal Reserve. Fed funds futures price is only 12% chance of a rate hike in September by late Friday. opportunities in December was at 33%, down from 43%
The Fed kept interest rates unchanged on Wednesday and said the short-term risk to the US economic outlook has diminished. However, the central bank stopped short of signaling that further interest rate hikes are on the cards for the US this year.
Meanwhile, the yen rose after the Bank of Japan approved only modest stimulus measures at its monetary policy meeting Friday, disappointing market hopes for more aggressive easing.
While the BoJ ease monetary policy further by increasing its purchases of exchange-traded funds, it chose not to lower rates further into negative territory, or increase the monetary base, as analysts widely expected.
Technically
Resistance: 0.7591 0.7605 0.7625 High / Low: 0.7608 / 0.7471
Support: 0.7580 0.7565 0.7554 Running Price: 0.7589
Comment: For intraday trade today suggest Sell at 0.7584; stop loss at 0.7644; level targets at 0.7464.
