Gold fell awaiting the results of Brexit
Gold fell in Asian trade on Thursday, as polls Brexit historic referendum will be held tonight in the United Kingdom shows while tight results, though sentiment leaning camps have survived in Europe.
On the Comex division of the New York Mercantile Exchange, gold for August delivery was reduced by 0.42% to $ 1,264.70 per troy ounce. Silver for July delivery fell 0.39% to $ 17.245 per troy ounce, while copper for July delivery edged up 0.14% to $ 2.137 per pound. Overnight, trading gold futures briefly fell to two-week lows.
On Wednesday, the FTSE 100 rose 57 points or 0.9% to 6,284, closing at a two-week high. With profits continues, UK equities returned to the level as at the beginning of this month before the campaign out of the European Union in a vote on Thursday’s highly anticipated began to gain momentum. Analysts at UBS added a twist by offering a prediction that the FTSE could drop by 20% if the U.K. decided to leave the EU. Billionaire investor George Soros said Tuesday that the British pound also fell 20% can be given such a scenario.
In Washington DC, Federal Reserve Chairman Janet Yellen reiterated the stance that supports voice Brexit can have serious consequences on the global economy and financial markets. In testimony on Capitol Hill, Yellen told the House Financial Services Committee that he has not scheduled an emergency meeting at the end of the week on the possibility that Britain will leave the EU completely.
A vote to leave Europe is considered as bullish for gold, as investors piled into safe-haven assets due to increased fears that the departure of the British from the European bloc could trigger a recession across the euro zone. Primarily, it will take the U.K. at least two years to leave the EU if the campaign out of Europe apply.
Technically
Resistance: 1265.87 1269.70 1270.88 High / Low: 1315.15 / 1259.34
Support: 1263.75 1261.50 1260.98 Running Price: 1263.95
Comment: For intraday trade today suggest sell at 1258.76; stop loss at 1260.87; target at 1252.02.
Yen weakened ahead of Brexit
Yen weaker held in early Asian trading on Thursday this is because investors awaited the results of the voting Britain on whether finished or not to remain in the EU, integration of financial markets became the main impact of hasi voting for Britain out of Europe. ,
USD / JPY trading up 0.28% to 104.70, while the AUD / USD was changing hands at 0.7520, up 0.32%. GBP / USD is quoted at 1.4813, up 0.71% and EUR / USD was trading at 1.1336, up 0.35%.
A poll on Tuesday showed that the campaign for Britain to stay in the European Union lost some noise ahead of the vote on Thursday.
The Survation poll showed that 45% of voters support the campaign to remain in the EU, with 44% supporting Brexit, 11% of the vote was hesitant to make choices. This compared with the last survey in which 45% for fixed voice and 42% of the vote to leave the EU.
The US dollar index, which measures the dollar’s strength with six major currencies, was last quoted at 93.81. Overnight, the dollar remained lower against other major currencies on Wednesday.
The National Association of Realtors said that existing home sales rose 1.8% in May to 5.53 million units from 5.43 million units in April that was revised from the initial reading of 5.45. The consensus forecast is for an increase of 1.1% to 5.54 million units.
Separately, the International Monetary Fund said the US economy is “overall in good shape” and predicted US growth to 2.2% in 2016 and 2.5% in 2017.
The dollar’s gains erased occurred on Tuesday after Federal Reserve Chairman Janet Yellen said that the gradual interest rate hikes might be needed, during testimony to Congress.
Technically
Resistance: 104.78 105.06 105.16 High / Low: 104.95 / 104.29
Support: Running 104.40 104.44 104.53 Price: 104.66
Comment: For intraday trade today suggest Buy 104.60; stop loss at 104.35; target at 105.00.
Nikkei index opened positively
Japan’s Nikkei Stock Index at the opening of Asian trading on Thursday was observed to rise, when it was observed rose 57.15 points, or 0.36 percent, at 16122.87. Strengthening the Nikkei index trigger currency weakening Yen.
The currency weakened this morning. Observed pair USDJPY exchange rate rose 0.35 percent at 104.78. A weaker yen is usually positive for exporters because adding their overseas profits when converted into local currency.
Shares of major Japanese exporters to move mixed, Nissan shares rose 0.15 percent, Sony shares rose 0.4 percent, Mitsubishi shares rose 0.67 percent. Meanwhile, shares of Toyota fell 0.83 percent, Nissan shares fell 0.84 percent and Honda’s fell 1.32 percent. Shares of Sony fell 0.09 percent.
As for the Nikkei index futures tracked rose 90.00 points or 0.56% at 16.080, up compared to the previous closing at 15.990.
The US dollar index, which measures the strength of the dollar compared with six other major currencies, last quoted at 93.81.
Technically
Resistance: 16090 16100 16155 High / Low: 16135/15950
Support: 16030 16015 15910 Running Price: 16 085
Comment: For intraday trade today suggest Buy at 16220; stop loss at 16121; target at 16454.
