Gold Preserves June Range: Watch Greece, U.S. NFP Report For Cues
Dailyfx | Jun 28, 2015 01:52AM ET
Gold Preserves June Range- Watch Greece, U.S. NFP Report for Cues
Fundamental Forecast for Gold: Neutral
- Gold Price Breakdown Coming?
- Gold Drops to 2-Month Support, S&P 500 Upside Momentum Falters
Gold prices plummeted this week with the precious metal down 2.2% to trade at 1174 ahead of the New York close on Friday. The losses amounted to a 5 day losing streak with prices breaking back below the 2015 open early in the week. Bullion is down just 1% on the year as lackluster price action drags on volatility expectation with a stronger dollar, improving US data and expectations for higher rates from the Federal Reserve continuing to sap demand for the yellow metal.
Looking ahead to the shortened holiday week, the June U.S. Nonfarm payroll release on Thursday will be central focus with consensus estimates calling for a print of 230K as unemployment ticks lower to 5.4%. Aside from the headline figure, market participants will be closely eyeing the wage inflation figures as subdued price growth remains a growing concern among Fed officials. Look for strong data to continue to weigh on gold prices as interest rate expectations are adjusted. In addition, European headlines & key PMI data out of China next week may also impact prices amid the ongoing concern surround the outlook for the global economy.
The lackluster price action has been the symbol of indecision for the markets with the ongoing turmoil in Europe surrounding the Greek crisis offering little upside for gold. From a technical standpoint, prices have held within the initial monthly opening range with gold rebounding off basic trendline support extending off the 2015 low on Friday. Note that momentum has been coiling up since the start of the year and we’ll look for a breakout in both momentum and price from the recent range for further guidance on our medium-term directional bias. Although the broader bearish outlook is back in focus, we’ll take a neutral stance heading into next week / July trade with a break below this month’s range targeting critical support down into 1150/51.
Original post
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.