Gold prices rose significantly today, restored with all previously lost ground, which was also associated weakening of the US dollar and the results of the referendum on the gold in Switzerland.
As previously reported, the people of Switzerland voted in a referendum yesterday against the proposal to oblige the SNB to keep gold at least 20% of its reserves. If the relevant law was passed, the SNB would have to increase their gold reserves nearly tripled (now they make up 7.5% of the bank's reserves and equal to 1040 tons), ie the purchase of 1.5 thousand. Tons of gold - half of the annual production of this precious metals in the world - worth about $ 70 billion. Swiss francs. The authors of the bill is withdrawn at this 5 years. Referendum participants also voted against the proposal on the repatriation of all Swiss gold stored abroad, and a ban on the sale of precious metals in the future.
Increase in the price of gold has also helped the dollar's decline against other major currencies as a result of profit-taking by traders after the recent jump. Gold prices are likely to remain reduced and tend to decline further in the near term amid signs of strengthening US economy, which could cause the Fed to raise interest rates sooner and faster than previously predicted. Expectations of growth rates on loans put pressure on gold as a precious metal with difficulty competing with the yield of interest-earning assets at higher rates.
Had little effect as of today's US data. A report published by the Institute for Supply Management (ISM), showed that in November the activity in the US manufacturing sector has deteriorated slightly, but exceeded the forecasts of economists who had expected a slightly larger decrease in the index. PMI index for the US manufacturing fell to 58.7 in November against 59.0 in October. A reading above 50 indicates expansion of industrial activity. Note that the last value was higher than the estimates of experts - is expected to decrease to 57.9.
Meanwhile, it became known that the gold reserves in the SPDR Gold Trust fell to 717.63 tons, the lowest level since September 2008, indicating the departure of investors in the US.
Cost of January futures for gold on the COMEX today rose to 1196.40 dollars per ounce.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.