Gold prices drop
The price of gold futures opened lower on Monday in Asian trade as investors awaited trade data from China to be able to predict the market direction.
In China, the trade balance for July is estimated at a surplus of $ 47600000000, with exports down 3.0% and imports fell 7.0%, both year-on-year.
China will release trade and inflation data amid worries over the health of the world’s second largest economy.
China is the world’s top importer of copper and second largest gold buyer behind India.
Earlier, in Japan, we adjusted the current account is expected to show a surplus of ¥ 3.20 trillion for bank loans in July and is seen rising 2.0% year-on-year. In China, foreign reserves came in CNY3.2 trillion, to meet expectations.
Gold for December delivery on the Comex division of the New York Mercantile Exchange fell 0.20% to $ 1,341.65 per troy ounce.
Also on the Comex, silver futures for September delivery fell 0.18% to $ 19.780 per troy ounce.
Copper futures for September delivery was flat at $ 2.160 per pound.
Last week, the price of gold fell to a one-week low on Friday after data showed the US economy created more jobs than expected in July, increasing the possibility of a rate hike from the Federal Reserve in the coming months.
Meanwhile, the unemployment rate held steady at 4.9%, as more people entered the labor market.
The report also showed that average hourly earnings rose month-on-month by 0.3%, beating expectations for a 0.2% gain. They are up 2.6% this year.
Elsewhere, Germany is to publish preliminary data on second quarter economic growth on Friday for more clues about the strength of the eurozone economy.
Data were optimistic rekindled speculation that the Federal Reserve will raise interest rates this year. Fed fund futures now price in a 15% chance of a rate hike in September. opportunities in December was around 44%, up from 33% ahead of the report.
Technically
Resistance: 1336.65 1339.00 1341.30 High / Low: 1364.51 / 1330.93
Support: 1334.35 1332.00 1329.70 Running Price: 1335.90
Comment: For intraday trade today suggest Buy at 1338.87; stop loss at 1337.67; targets at 1340.87.
The Yen weakened in Asian trade
Yen opened lower in Asian trade on Monday as a result of Japan’s trade data was weaker than expected and investors begin to focus on the trade report from China
USD / JPY was changing hands at 102.06, up 0.27%, while the AUD / USD was trading at 0.7612, down 0.07% with the fate of the currency tightly-bound for China’s trade with major partners.
In Japan, the adjusted current account came at ¥ 1.65 trillion, far below the ¥ 3.20 trillion surplus for July is expected. bank lending rose 2.1%, beating the 2.0% gain expected.
Earlier in China, foreign exchange reserves came in CNY3.2 trillion, to meet expectations.
Going forward in China, the trade balance for July is estimated at a surplus of $ 47600000000, with exports down 3.0% and imports fell 7.0%, both year-on-year.
Outside the G7, traders will await the announcement of the monetary policy of the Reserve Bank of New Zealand on Wednesday amid growing hopes for a cut in interest rates.
The US dollar index, which measures the strength of the dollar-weighted of six other major currencies, was up 0.05% to 96.24.
Last week, the US dollar strengthened after data showed US employment increased more than expected in July, increasing the possibility of a rate hike from the Federal Reserve this year.
The US economy added 255,000 jobs last month, well above expectations for 180,000, the Labor Department said on Friday. June number was revised up to 292,000 jobs compared with the previous estimate of 287,000.
Meanwhile, the unemployment rate held steady at 4.9%, as more people entered the labor market.
The report also showed that average hourly earnings rose month-on-month by 0.3%, beating expectations for a 0.2% gain. They are up 2.6% this year.
The upbeat data rekindled speculation that the Federal Reserve will raise interest rates this year. Fed fund futures now price in a 15% chance of a rate hike in September. opportunities in December was around 44%, up from 33% ahead of the report.
Technically
Resistance: 102.21 102.27 102.75 High / Low: 102.24 / 100.86
Support: Running 101.84 101.90 101.97 Price: 102.07
Comment: For intraday trade today suggest Sell at 101.97; stop loss at 102.09; targets at 101.77.
Wallstreet Exchange rose sharply observed, the Nasdaq reached its highest price
Stocks closed sharply higher on Monday trading, with the S & P and Nasdaq posted prices near their highest ever achieved, after the US jobs report was stronger than expected.
The Dow Jones Industrial Average rose 190 points, and posted gains for the week. Merck contributed the most to gain in the Dow, followed by Goldman Sachs.
The S & P 500 rose about 0.8 percent, with the financial sector rose nearly 2 percent. The benchmark index broke above the previous all-time intraday high of 2,178.29 in mid-morning trade. The Nasdaq index rose about 1 percent.
The US economy added 255,000 jobs in July, well above the expected 180,000. The unemployment rate remained unchanged at 4.9 percent.
Investors kept a close watch on the report, because it could encourage the Federal Reserve to tighten monetary policy sooner rather than later.
Market expectations for a September interest rate rise to 18 percent, according to CME Group FedWatch tool.
Meanwhile, the oil market took a breather after two consecutive days of solid rises, with US crude ended 0.31 percent lower at $ 41.80 per barrel. Klang weekly data on the number of Baker Hughes showed the US added seven refineries.
US Treasurys erase gains slightly after the release of the jobs report, with the two-year note yields holding near 0.71 percent and the benchmark 10-year yield around 1.58 percent.
The dollar rose against a basket of currencies, with the euro near $ 1.108 and approximately 101.8 yen.
Earnings season began to ease Friday, with Allianz and Novo Nordisk, among others, announced the results before the bell. next week, the retail company will report quarterly results, including Nordstrom and Macy’s.
The Dow Jones Industrial Average closed 191.48 points higher, or 1.04 percent, at 18,543.53, with the highest increase in Merck stock and Verizon shares were down supreme.
The S & P 500 rose 18.62 points, or 0.86 percent, to close at 2,182.87, with financials leading the eight sectors of higher and utilities and telecoms lagged.
The Nasdaq index rose 54.87 points, or 1.06 percent, to 5,221.12.
Technically
Resistance: 18467 18477 18 491 High / Low: 18484/18252
Support: 18460 18450 18445 Running Price: 18465
Comment: For intraday trade today suggest Sell at 18 455; stop loss at 18 575; target at 18 255.
