Tuesday, 21st February 2017

Gold tends to rise to 1.600-1.604, says analyst

17th July 2012 | 879 Views
Jakarta (ANTARA News) - The price of gold rebounded due to weakness of the US dollar as the result of adverse data on retail trade in the United States.

Retail trade data is very important in measuring US economic health as the US economy depends on domestic consumption which has a share of up to 70 pct, Head of Research and Analysis of PT Monex Investindo Futures, Ariston Tjendra, said in Jakarta Tuesday.

Last month`s retail sales dropped 0.5 pct, worse than market expectations hoping for a 0.1 pct growth.

On Tuesday`s trading, many economic data and important events could move the price of gold, namely survey data of German economic sentiments from ZEW, data on US Consumer Price Index (inflation), data on US Net Capital Inflows, and testimony of US Central Bank in Congress.

"These data will affect the movement of the US dollar which is indirectly affecting gold movements," he said.

Ariston said the price of gold has been trying to move up to level 1.600-1.604 US dollars per per troy ounce, while selling potential is open in the area.

"But if the price of gold dropped to 1.587, the price of gold may return to 1.577," he said.

In the meantime, gold has been closed weakly on Monday (July 16), after the market players were affected by data showing a drop in US retail sales and worried about a comment of the Chinese Prime Minister on the economy of his country.

For the August dispatches, gold has been weakening 40 cents to 1,591.60 US dollar per troy ounce in Comex, a division of the New York Mercantile Exchange.

Gold is weakening in the beginning of trading following the weakening US retail sales, while the increasing worrying of the Chinese economic condition also had a pressure on gold and other metals.

Then gold strengthened and reached the positive zone in almost along the trading sessions, but many investors had a wait and see attitude and several reports or news on macro-economy appears, causing gold to move in a small circle.(*)