Bullion Extends Gains amid signs of a weakening economy of China.
ForexCorporate | Oct 14, 2015 11:04AM ET
Bullion extended gains the fourth consecutive session on Wednesday, reaching a fresh three-month high at 1175.96 US Dollar amid signs of a weakening economy of China.
“Weaker Chinese data has given gold a lift,” Jonathan Butler, a precious metals strategist at Mitsubishi Corp. in London, said by phone. “Indicators in China are trending towards outright deflation, which raises the potential for further stimulus and should be positive for gold.
Bullion has been appreciating since the publication of weak U.S. nonfarm payrolls report earlier this month that prompted the market to shift expectations of a U.S. rate hike to 2016 and sell the dollar.
Unpromising Chinese economic data on Wednesday added concerns about global growth, another factor investors believe could deter the Fed from hiking rates this year.
Fed policy divisions were highlighted Tuesday as Governor Daniel Tarullo argued interest rates should stay on hold while documents showed most regional Fed directors sought higher borrowing costs. Fed Chair Janet Yellen said on Sept. 24 that she expected the first increase since 2006 to be warranted by the end of the year. The odds of a rate liftoff in December are 34 percent while the chances for a move in March are 56 percent, futures data show.
Forex Corporate Research Department.
1. Information on this page / e-mail / letter is not a recommendation to buy or sell and of course, can not guarantee a profit, it should be considered only as information that may assist you in making good decisions in your trading. Information and graphics presented above have been obtained from reliable sources, but their accuracy can not be fully guaranteed. Forexcorporate, its representatives, employees, and other authors will not be liable for any loss resulted from the use of this information.
2. The purpose of this risk disclaimer is to inform users of the potential financial risks involved in trading in foreign currencies. The transaction or operations in the Forex or OTC markets does involve a substantial degree of risk, and should not be undertaken until the user has carefully evaluate whether their financial situation is appropriate for such transactions. Trading may result in a substantial or complete loss of funds and therefore should only be undertaken with risk capital.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.