Gold prices began to stabilize in Asia political risk concerns over Turkey on the wane
Advantages gold futures eased in Asian trade on Monday in cautious trading after weekend military coup failed in NATO ally Turkey assessed the political risk sentiment for the time of the event is on the wane.
Gold for August delivery on the Comex division of the New York Mercantile Exchange slipped 0.05% to $ 1,326.70 per troy ounce.
Also on the Comex, silver futures for September delivery dropped 0.60% to $ 20.045 per troy ounce, while copper futures fell 0.67% to $ 2.221 per pound even after a rise in house prices data for June in China from 7.3% year-on-year in the previous month increased 6.9%.
This week, investors will focus on the European Central Bank meeting on Thursday to see whether policy makers will increase monetary stimulus to counteract economic shocks negative of the Brexit and survey data Friday on business activity the eurozone, as well as reports German business confidence, for indications fresh in health economy area behind the English voice to come out of the EU.
Meanwhile, U.K. will stay in the spotlight as a key economic indicator for the British economy released.
In the US, investors will eye a pair of housing sector reports to gauge whether the world economy is strong enough to withstand further interest rate hikes in 2016.
Last week, gold prices fell on Friday, after a number of upbeat US economic reports suggest that the economy returned to growth in the second quarter pace.
The price of the yellow metal turned slightly higher in post-settlement trading after news broke of a clear military coup in Turkey. But the coup attempt were destroyed as President RecepTayyipErdogan rushed back to Istanbul from a Mediterranean holiday and urged people to take to the streets to support the government against the conspiracy he was accused of trying to kill him.
Earlier, gold fell to the lowest level of the session after data showed that US retail sales rose more than expected in June, as Americans buy motor vehicles and other goods, reinforcing the view that economic growth picked up in the second quarter.
Their hope is further reinforced by other data on Friday showed that industrial production recorded the largest increase in 11 months in June, driven by a surge in motor vehicle assembly. With the strengthening of domestic demand, inflation also continued to increase.
Data bullish could allow the Federal Reserve to raise interest rates later this year, but much will depend on the policy assessment ‘of the impact on the US economy of the UK June 23 vote to leave the EU.
Three Federal Reserve policy makers on Thursday expressed the view that there was no hurry to raise US interest rates in the wake of the decision U.K. to leave the EU, despite signs that the US economy is near employment.
interest rate futures currently price in a 43% chance of a rate hike in December. 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.
Gold rose nearly 25% so far this year, drawing support from fading expectations of a Fed rate hike and as expectations mounted that the central banks around the world will increase monetary stimulus to counteract the negative economic shock of sound Brexit.
Technically
Resistance: 1330.82 1333.82 1335.02 High / Low: 1375.02 / 1320.25
Support: 1324.82 1320.68 1318.87 Running Price: 1329.05
Comment: For intraday trade today suggest buy at 1333.97; stop loss at 1331.17; target at 1335.17.
Safe-haven demand rose
The dollar strengthened in trade caused by the movement of Turkish military faction, also following the safe-haven yen higher, as a result of the military coup by a faction in Turkey.
The dollar rose 4.73% against the Turkish lira to trade at 3.0137 after the Turkish Prime Minister said there was an attempted coup took place.
Segment military took over the Key Bridge in Istanbul and attacked the parliament building in Ankara.
Investors also sought refuge in traditional safe haven yen, which is usually bought by investors in times of market turmoil.
USD / JPY down 0.47% at 104.88 Friday, reversing earlier gains to a three-week high of 106.31.
The dollar has strengthened against the Japanese currency the previous day because of upbeat economic reports from the US and China supported risk appetite.
The Commerce Department reported that US retail sales rose 0.6% in June, the third monthly increase in a row and easily surpassing the 0.1% gain expected by economists.
Chinese data on industrial production and retail sales also beat expectations, which shows that the world’s second-largest economy still has momentum.
Dollar still ended the week with a gain of 4.16% against the yen as mounting expectations for additional monetary easing by Tokyo continued to press the currency lower.
The pound fell sharply against the dollar, with GBP / USD down 1.2% at 1.3181 late Friday after Andy Haldane, the Bank of England’s chief economist, said the bank is ready to ease monetary policy in August to counteract the negative economic shock of Brexit choose.
But sterling still ended the week with a gain of 1.85% after the Bank of England kept interest rates on hold at the end of its policy meeting on Thursday, dashing hopes for a rate cut.
The euro weakened against the dollar and yen late Friday, with EUR / USD down 0.83% at 1.1029 and EUR / JPY down 1.22% to 115.74.
In the weeks ahead, market participants will focus on the results of the European Central Bank meeting on Thursday to see whether policy makers will increase easing measures to offset the impact of noise Brexit.
The U.K. is to release what the report will be watched closely on employment, inflation and manufacturing activity and the US was to produce a report on the health of the housing sector.
Technically
Resistance: 105.63 105.92 105.95 High / Low: 106.31 / 104.56
Support: Running 104.59 104.93 105.26 Price: 105.62
Comment: For intraday trade today suggest Buy at 105.77; stop loss at 105.17; target at 106.97.
Wall Street Stock index stabilized after a large rally of trade
Stocks in Monday trading flat monitored, with most trading down slightly at the end of the weekend on Saturday morning, due to a huge rally on Wall Street eased.
The Dow Jones Industrial Average ended around 9 points higher, with shares of Boeing and Caterpillar contributed most to gain. The blue-chip index extending its winning streak to six days.
The S & P 500 closed 0.1 percent lower, with a reduction in the consumer discretionary sector. The Nasdaq index also fell by around 0.1 percent.
Earlier, the stock markets traded mostly higher, after an impressive bank earnings and retail sales figures came in better than expected.
Retail sales beat economists’ expectations, rose 0.6 percent in June compared to consensus of an increase of 0.1 percent, in another sign that consumer spending increased in the spring.
US consumer prices rose for the fourth consecutive month in June. The Consumer Price Index rose 0.2 percent last month, the Labor Department said, after a similar rise in May.
The key measure of consumer attitudes, the Consumer Sentiment Index, lower reported so far this month. Sentiment came in 89.5 to read the beginning of July, the University of Michigan said. Economists forecast initial sentiment index to reach 93, according to Thomson Reuters consensus forecasts.
Thursday, weekly jobless claims showed no change during the week and the week of June reading of the producer price index came in better than expected.
Wall Street continued to digest earnings on Friday as Wells Fargo bank reported the results in-line with consensus, and Citigroup reported results that easily beat analysts’ expectations.
On Thursday, JPMorgan Chase and BlackRock beat estimates recorded results in line with expectations.
The US dollar traded higher against a basket of currencies, with the euro at $ 1.106 and approximately ¥ 105.4 yen. Pound sterling was trading close to US $ 1.32.
US crude West Texas Intermediate (WTI) ended 27 cents higher, or 0.59 percent, at $ 45.95 per barrel.
The Dow Jones Industrial Average closed 10.14 points higher, or 0.05 percent, to 18,516.55, with the highest increase in Caterpillar stock, while Nike shares remain the largest.
The S & P 500 closed 2.01 points lower, or 0.09 percent, at 2,161.74, with consumer discretionary sectors led the six sectors were lower and the materials sector rose the highest.
The Nasdaq index ended 4.47 points lower, or 0.09 percent, at 5,029.59.
Technically
Resistance: 18472 18480 18500 High / Low: 18490/18233
Support: 18450 18431 18 422 Running Price: 18 455
Comment: For intraday trade today suggest Sell at 18431; stop loss at 18551; target at 18 311.
