Goud doorstaat de storm.......
Precious-Gold ticked up on Wednesday trading as markets prepare to reopen after Atlantic storm Sandy swept through East Coast states, where investors remain on hold till the release of NFP and knowing U.S. elections results.
The shiny metal is still trading in the same levels seen last week since it found support at $1698.89 an ounce to trade around $1712.40 today, where The trading range for today is expected among the key support at 1675.00 and key resistance now at 1745.00.
Gold is girding for a halt of its four-month rally as it slipped 3.3%, so far, in October on worries regarding global growth and European debt crisis, where the announcement of stimulus by major central banks managed to ease the drop.
Yesterday, the BOJ held interest rate while boosted stimulus by 11 trillion yen ($138 billion) to 66 trillion yen, yet investors expected more amid the undergoing sluggish growth pace.
Meanwhile, worries have eased after Sandy hurricane, the biggest storm to hit the United States which forced a closure of markets for two days, as markets are preparing for a reopen today.
However, it seems that investors are on hold waiting for upcoming major events that will largely determine the market direction such as the infamous non-farm jobs report and the result of U.S. elections next week.
The awaited non-farm payrolls report will detect the health of the U.S. labor market after the improvement seen last month as the Fed targets further drop in unemployment rate. Thereafter, eyes will shift to U.S. elections which are also set to decide a winner, Obama or Romney, who will decide on spending cuts plans to shore up recovery.
Also, attention is still with Spain which is still hesitant to ask for a bailout; a report released today showed that Spain`s central government’s deficit retreated to 4.39 percent of GDP in the nine months ended September from 4.77 percent in the eight months through August, thereby lowering pressure on PM Mariano Rajoy to ask for an international aid.
Tomorrow, optimism may prevail if China`s PMI manufacturing matched forecasts showing an expansion of 50.2 this month from 49.8 in September.
In the FX market, the dollar inched up against a basket of major currencies, as depicted by the dollar index, after yesterday`s drop to hover around 79.97, noting that key support remains at 79.60 levels, which represents SMA 200 level on the weekly charts.
Crude oil for December`s delivery is currently trading higher around $85.95 a barrel from the day`s opening of $85.73.