Trading Articles

Gold drops as U.S. output gauge sparks dollar demand

Investing.com – Gold prices dropped on Thursday after data revealed that manufacturing activity in the Chicago region expanded at its fastest rate in 30 years in October, which sparked hefty demand for the greenback.

Gold and the dollar tend to trade inversely with one another.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,323.70 during U.S. afternoon hours, down 1.90%.

Gold prices hit a session low of USD1,318.80 a troy ounce and high of USD1,344.90 a troy ounce.

Gold futures were likely to find support at USD1,310.10 a troy ounce, the low from Oct. 22, and resistance at USD1,361.70, Monday's high.

The December contract settled up 0.28% at USD1,349.30 a troy ounce on Wednesday.

Data released earlier revealed that the Chicago manufacturing purchasing managers’ index jumped to 65.9 in October from 55.7 in September. 

Analysts had expected the index to decline to 55.0.

Dollar gains as market braces for Federal Reserve decision

Investing.com – The dollar rose against most major currencies on Tuesday despite uninspiring economic indicators hitting the wire earlier, as investors viewed the safe-and-liquid greenback as the venue of choice to await the Federal Reserve's Wednesday announcement on interest rates and monetary policy.

In U.S. trading on Tuesday, EUR/USD was down 0.27% at 1.3748.

Uncertainty over the Fed's language and forward guidance on monetary policy kept investors camped out in safe-haven greenback positions on Tuesday despite lackluster economic data.

The Conference Board said its index of consumer confidence dropped to 71.2 in October from an upwardly revised reading of 80.2 in September. 

Analysts were expecting the index to fall to 75.0 this month. 

The data came on the heels of Commerce Department data showing that U.S. retail sales fell 0.1% in September, while core retail sales, which exclude transportation items and gasoline, rose 0.4%, both in line with expectations.

EUR/USD dips as market awaits U.S. September jobs report

Investing.com – The dollar on Monday rose on demand from investors seeking safe-harbor ahead of the release of the U.S. September jobs report on Tuesday, over two weeks late due to the recent government shutdown.

In U.S. trading on Monday, EUR/USD was down 0.06% at 1.3677, up from a session low of 1.3652 and off from a high of 1.3688.

The pair was likely to find support at 1.3474, Wednesday's low, and resistance at 1.3703, Friday's high.

A government shutdown that began Oct. 1 and ended last week left the pair without one of its chief steering currents, the monthly U.S. jobs report.

September's unemployment data will hopefully give investors a weather vane over the direction of U.S. monetary policy.

The Fed is currently buying USD85 billion in Treasury holdings and mortgage debt a month to boost the economy, a monetary policy tool known as quantitative easing that drives down interest rates to spur recovery, weakening the dollar in the process.

Gold rises after U.S. data implies tapering could be delayed

Investing.com – Gold futures traded higher in the early part of Monday’s Asian session after last Friday’s U.S. jobs data was viewed by some traders as a sign the Federal Reserve may not be able to taper its quantitative easing program as soon as previously thought. 

On the Comex division of the New York Mercantile Exchange, gold futures for October delivery rose 0.11% to USD1,387.70 per troy ounce in Asian trading Monday. The October contract settled up 0.99% at USD1,386.20 per ounce last Friday. 

Despite Friday’s strong gains, gold prices lost 0.25% on the week, the second consecutive weekly decline. Gold futures were likely to find support at USD1,356.00 a troy ounce, the low from August 22 and resistance at USD1,415.00, the high from September 4. 

In U.S. economic news out last Friday, the U.S. Labor Department said employers in the world’s largest economy added 169,000 jobs last month, below the 177,000 new jobs analysts expected. The July reading was slashed to 104,000 new jobs added from the initial estimate of 162,000. 

Dollar falls as market braces for jobs report, eyes Syria

Investing.com – The dollar fell against most major currencies on Wednesday as investors avoided the greenback over uncertainty surrounding a possible U.S. military strike against Syria.

In U.S. trading on Wednesday, EUR/USD was up 0.28% at 1.3208.

The U.S. Senate Foreign Relations Committee on Wednesday gave President Barack Obama authority to use military force against Syria for its alleged use of chemical weapons in its civil war.

U.S. President Barack Obama asked Congress for the green light to begin limited strikes against Syria though he said earlier Wednesday that he does not need approval to strike, which softened dollar demand.

Separately, Russian President Vladimir Putin said he might support a U.N. Security Council resolution calling for military strikes provided that body was presented with conclusive proof that the Syrian government employed chemical weapons.

The Upward Momentum In Gold Prices Looks Set To Continue

Gold prices climbed back above the $1,400 an ounce on Tuesday after Interfax reported that Russia detected a missile launch. A Russian Defense Ministry spokesman quoted by the Interfax news agency said the launch was picked up by an early warning radar station at Armavir, near the Black Sea, which is designed to detect missiles from Europe and Iran.

RIA, another Russian news agency, later quoted a source in Syria's "state structures" as saying the objects had fallen harmlessly into the sea.

The Russian Defence Ministry declined comment to Reuters.

However, later in the day Israel's Defense Ministry said that it, along with a Pentagon team, had carried out a test-launch of a Sparrow missile. The Sparrow, which simulates the long-range missiles of Syria and Iran, is used for target practice by Israel's U.S.-backed ballistic shield Arrow.

Forex - EUR/USD weekly outlook: September 2 - 6

Investing.com – The euro eased back from five-week lows against the dollar on Friday but still ended the week lower as concerns over a possible U.S. military intervention in Syria underpinned dollar demand.

EUR/USD fell to lows of 1.3174, the lowest since July 25 before paring back some losses to settle at 1.3218, 0.17% lower for the day and ending the week down 1.19%.

The pair is likely to find support at 1.3172, Friday’s low and resistance at 1.3300.

The dollar remained supported amid concerns over prospects for a U.S. led military intervention against Syria, following accusations the government used chemical weapons against civilians.

Gold backs off highs as dollar rises on Syrian tensions

Investing.com – Gold prices gave back earlier gains but remained in positive territory after investors sought out safe-haven dollar positions in advance of possible U.S.-led attacks on Syria.

Gold and the dollar tend to trade inversely from one another.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,421.70 during U.S. afternoon hours, up 0.11%.

Gold prices hit a session low of USD1,413.30 a troy ounce and high of USD1,433.50 a troy ounce.

U.S. stocks drop as U.S.-Syrian conflict fears brew; Dow down 1.14%

Investing.com – U.S. stocks fell on Tuesday after fears began to grow that the U.S. is moving closer to launching military strikes against Syria and fan broader geopolitical tensions that could roil markets down the road.

Trading volumes were thin to moderate.

At the close of U.S. trading, the Dow Jones Industrial Average finished down 1.14%, the S&P 500 index fell 1.59%, while the Nasdaq Composite index dropped 2.16%.

Syria's alleged use of chemical weapons in its internal conflict repelled investors away from stocks and into the safety of the yen and gold as the possibility of U.S. military strikes appeared to be on the rise.

U.S. Defense Secretary Chuck Hagel said earlier the military is ready to take action against Syria if called upon by the White House.

Dollar holds steady as market shrugs off weak data

Investing.com – The dollar traded steadily against most major currencies on Monday as investors bet the Federal Reserve remains on track to begin tapering asset purchases this year despite spotty economic indicators such as disappointing durables goods numbers released earlier.

In U.S. trading on Monday, EUR/USD was down 0.01% at 1.3376.

The Commerce Department reported earlier Monday that U.S. durable goods orders dropped 7.3% in July, much worse than market expectations for a 4.0% decline. The July figure marked the largest decline since August 2012.

Core durable goods orders, which are stripped of volatile transportation items, fell 0.6% last month, defying expectations for a 0.5% increase.