Gold price showed a muted reaction to the latest U.S. economic data

The gold price held firm on Friday amid weakness in the U.S. dollar and after a mixed bag of data on the U.S. economy.  The price of gold climbed to $1,671.34 closing for last week, but subsequently pared its gains to trade up by just $1.61 at $1,662.60 per ounce.

The gold price showed a muted reaction to the latest U.S. economic data on Thursday.  Weekly jobless claims fell to a fresh four-year low of 359,000, but still came in above the 350,000 median estimate among economists.  In addition, fourth quarter 2011 GDP remained at 3.0%, while economists were expecting the rate to be revised upward to 3.2%.

Analysts at VTM Capital attributed the recent weakness in the gold price to its relationship with the broader markets.  In a note to clients, the firm wrote that “We have suspected that it would take much more than a pure dollar correction for sustained gains to $1,700 and beyond, especially now that bullion is strongly correlated to the broader equity market, and risk sentiment in general.  It comes as little surprise, with the VIX volatility index – the global risk gauge – rallying to 2.5-week highs, that gold followed other precious metals with the broader market back in risk averse mode.”


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I found Gold Investment in Malaysia is a vary good tools to make profit when the market is down. I also found that Gold Price go up and down more slower compare to share market so to make money in long term, Gold is the right tools. This blog is all about Malaysia Gold Info and the way to make profi

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