By Paul Ploumis 04 Sep 2015 Last updated at 07:20:32 GMT
Gold fell 1 percent on Thursday as the dollar jumped versus the euro after the European Central Bank (ECB) cut inflation forecasts, while a U.S. jobs report that could provide clues on the timing of a Federal Reserve rate rise remained in focus
Friday, September 04, 2015
Gold fell 1 percent on Thursday as the dollar jumped versus the euro after the European Central Bank (ECB) cut inflation forecasts, while a U.S. jobs report that could provide clues on the timing of a Federal Reserve rate rise remained in focus. The ECB left interest rates unchanged at record lows as expected, but lowered its forecasts for inflation and economic growth, citing a slowdown in emerging markets and weaker oil prices. As a traditional hedge against inflation, gold suffered from the downward revision. U.S. weekly jobs data indicated a strengthening labor market, a day ahead of the more critical monthly jobs report, due at 6 pm IST on Friday, which should give a clearer picture about the strength of the world's biggest economy. Bullion traders remain wary of taking up new positions until they receive more clarity on whether the Fed will raise rates at its next meeting on Sept. 16-17, analysts said. Higher interest rates would increase the opportunity cost of holding nonyielding bullion. Also weighing on bullion was the absence of Chinese buyers with markets in China, a major gold consumer, closed through Friday for public holidays.
Copper surged to the highest level in over three weeks on Thursday as bearish investors closed out positions amid a stock market recovery, strong U.S. economic data and signals that European monetary stimulus could be extended. Aluminium also shot up, touching a one-month peak on the London Metal Exchange, but some investors were preparing a renewed attack on the downside. The overall metals market got a boost from a rise in global shares after the U.S. trade deficit fell to its lowest in five months and the European Central Bank indicated it could prolong its stimulus program. The Shanghai Futures Exchange is closed for two days as China celebrates the anniversary of the end of World War Two. Trading will resume on Monday.
Courtesy :Sushil Finance