Markets sold off really heavily yesterday, and gold held up pretty well against that

The gold price continued to consolidate near the $1,575 per ounce level on Tuesday amid modest strength in the U.S. dollar. Gold prices ranged between $1,571 and $1,584 in overnight trading, an area they have now occupied for several weeks.  The SPDR Gold Trust (GLD), the world’s most liquid gold price proxy, inched higher by $0.05 to $153.08 per share this morning.

As for the gold price, Macquarie analyst Hayden Atkins wrote in a note to clients that “Markets sold off really heavily yesterday, and gold held up pretty well against that. It is maybe the one thing that has really stayed solid against some pretty solid headwinds elsewhere…People are just keeping the bid where it is, still waiting on things like quantitative easing.”

Looking ahead for the price of gold, sovereign debt-related news is likely to remain a critical catalyst for the yellow metal.  In the U.S., the economic calendar is relatively light this week but does include a few significant items.  Weekly jobless claims will be released on Thursday, along with reports on Durable Goods and Pending Home sales for June.  The week then concludes on Friday with second quarter GDP and the University of Michigan Consumer Sentiment Index for July.

Next week’s schedule will be highlighted by the Federal Reserve meeting on Wednesday and the non-farm payrolls data on Friday, as well as several additional reports on the U.S. labor market and manufacturing industry.

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