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1 Apr 2014
Gold is strongly bearish
FXStreet (Guatemala) - Gold has dropped from a $1,284 strong hold and given way to $1,280 the figure and eye's Asian lows.
Gold’s overnight low was $1,278.34/oz as investors took confidence in Yellen and today, the US data, most recently being US manufacturing growth accelerating to 53.7 vs 53.2. Wall street was sent to record highs, adding further pressure on the yellow metal.
AU demand is faltering as the markets outlook for the US’s recovery, particularly in respect of monetary policy, is bullish / hawkish in regard to climbing back to ‘normal’ conditions. Therefore, speculative positioning is fading from the price and there are many whom regard current levels too high looking forward. We are also seeing a reduction of demand reported from Asia. Local prices in China have been at a discount to spot prices on weak demand.
Gold’s overnight low was $1,278.34/oz as investors took confidence in Yellen and today, the US data, most recently being US manufacturing growth accelerating to 53.7 vs 53.2. Wall street was sent to record highs, adding further pressure on the yellow metal.
AU demand is faltering as the markets outlook for the US’s recovery, particularly in respect of monetary policy, is bullish / hawkish in regard to climbing back to ‘normal’ conditions. Therefore, speculative positioning is fading from the price and there are many whom regard current levels too high looking forward. We are also seeing a reduction of demand reported from Asia. Local prices in China have been at a discount to spot prices on weak demand.