Post China Data Downed Gold Prices
Trading commodity futures exchange on Friday (24/7), the price of gold and silver was observed to experience a sharp decline with the continuing decline of the previous session after a slowdown in Chinese manufacturing activity.
On-going trade in the Asian session, gold futures for August delivery dropped $ 1.41% observed at the level of $ 1.078.70 per troy ounce on the Comex division of the New York Mercantile Exchange. Since this morning, the gold price was observed to move touched a session low $ 1.077.70 to $ 1.090.60 level daily and daily highs for the session.
Meanwhile, silver futures for September delivery have been tracked down by 1:45% at the level of $ 14,488 per troy ounce. The price of silver has been moving touched a session low $ 14,457 to $ 14,650 daily and the level of daily highs for the session.
Gold prices fell sharply visible this morning after a slowdown in growth in China’s manufacturing activity contracted in the month of July. Based on the official report released by Markit said that the Chinese Manufacturing PMI has decreased, the seasonally adjusted 48.2 in July from 49.4 in June.
Meanwhile, other pressures experienced by the price of gold and silver futures have been affected by the economic recovery is happening in the US territory. With improving conditions in the US economic growth has increased speculation that interest rate hikes by the Fed is getting closer.
In the previous session, an official report released by the Labor Department said that the number of jobless claims has experienced a decline, the seasonally adjusted 255K from 281K in the previous week.
Technically, gold in today’s trading session on Friday (24/07) potentially bearish, tested negative trend back, but prone to reversal. RSI indicator tends to re-test support channel and towards the oversold area, but Bollinger Band begins to widen, thus giving impetus for gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1073.50 and re-test the maximum level of 1068.10. However, if the price of gold is able to break and hold above 1078.70, the estimated price of gold could potentially test the Resistance 1080.80 and 1085.50.
Euro Recovers by Optimism Outlook Greece
The euro moved near its highest level in a week against the dollar in early trade on Friday as the encouragement of Greece who took action a step further towards a bailout effort that sparked short-covering in the single currency.
Euro steady moves the range $ 1.0980 area and is within the range of the highest level in a week at $ 1.1018 reached overnight. The single currency gained after the Greek parliament approved a package of second reformation requested to start negotiations with creditors in an attempt to avoid bankruptcy in their banks.
However, the US is still in the outlook for a rate hike later this year and with caution of Greece’s ability to survive in the long term, the analysts see that the euro will weaken return potential.
One analyst of brokerage in Tokyo said that news of Greece is helping the movement of the euro, but it is fundamentally the movement of the euro / dollar is still in a downward trend in the long term due to the European economic indicators and inflation data are still not strong enough since the beginning of this year and also we should note the strengthening outlook for US interest rate hikes by the end of this year.
Technically, the pair Euro-dollar on the trading session today, Friday (24/07) likely to move into the negative trend.
The weakening of the Euro mainly expected soon retests the support at 1.0925 minimum and maximum 1.0850. Meanwhile, if the Euro is able to break and hold above 1.0975, then the other alternative scenario that Euro likely to test resistance in 1.1000 and 1.1050 area.
Cautious Ahead of PMI Manufacturing Data
The movement of Nikkei index at the Tokyo Stock Exchange trading Japan on Friday morning (24/7), opened with the index back under pressure but tends to move is limited, due to the volatile movements of the Japanese Yen. Additionally ahead akshir session there will be an announcement Markit Economics indicated negative.
Data to be released is an indicator of the performance of Japanese manufacturing by Japan’s Nikkei Flash Manufacturing PMI in July is expected to fall to 49.7 basis points from the previous release at 50.1 basis points.
Shares of the ballast as stock indexes slumped -1.90% Sumco, Komatsu, -1.65%, -1.37% stock Mitsubishu Materials, Sharp shares -0.60%, 0.82% shares of Mitsui Chemicals, Mitsubishi Materials -1.82%, -1.26% Toshiba shares , Hitachi shares -0.89%, and shares Hino and Mitsubishi Motors shares slumped -1.39%, and 1:24%.
Likewise, the movement of the Nikkei this morning, which opened in the strong pressure by 85.39 points, or 0:41%, to 20598.56 points of the position be traded before closing at 20683.95 points and reached highest position before traded at 20708.23 points and the previous low at 20648.76 points.
But slightly different from the movement of Nikkei index futures this morning, which still managed to open higher by 10 points or of 0.05%, with being 20 590 points from the previous closing position traded at 20 580 points and reached the highest position previously traded at 20,700 points and the previous low at 20 565 points.
Based on the closing traded before, then Analyst Vibiz Reseach Center estimates that the movement of the Nikkei index today will tend to penetrate the support back to 20,600 points by the middle MA5 BB10 H4, if the movement of the index broke through the first support is expected to try to penetrate the second support at 20 530 points BB10 bottom with H4 MA5.
If the movement of the index managed to turn around a charcoal rebound, then is expected to try to penetrate the first resistance at 20 715 points with MA5 on BB10 daily, if the movement of the index broke through the first resistance is expected to try to penetrate the resistance at 20 790 points with MA5 on BB10 H4.
Technically, the index on the trading session today, Friday (24/07) likely to weaken, tests negative trends, the impact of Wall Street. At the M15 chart bearish engulfing formation provides opportunities for the index to move downside. However, the volume of which is likely to increase, early indications bullish index. In addition, RSI, on the M15 charts, is oversold, signaling upside.
It is estimated, the index test the level of support in advance ie 20480 and 20400. If it fails at 20 535, then the next index is expected to tend to retest the resistance level that is 20 550 and continued until the possibilities are in the 20600 area.
