Gold price: Bullion holdings have stabilized so far this month

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on Dec 15, 2014
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iNVEZZ.com, Monday, December 15: The price of gold has fallen so far in today’s trading session after posting its biggest weekly gain in two months. The precious metal came under pressure as market participants were weighing this week’s Federal Open Market Committee (FOMC) policy meeting.
Gold for immediate delivery had shed 0.71 percent, or $8.70, to $1,213.51 an ounce as of 08:38 GMT, and was trading 0.88 percent above its 50-day simple moving average of $1,203.33. The precious metal climbed 2.6 percent last week, the steepest gain since the seven days to 10 October. Demand for the precious metal rose as investors reacted to weaker-than-expected economic reports from Japan and China, worries over elections in Greece and a selloff in global equity markets by seeking a safe haven in gold.

The Federal Reserve will convene for its two-day policy meeting tomorrow and recent data that point to a strengthening economy may reinforce the case for officials to take on a more hawkish stance. The FOMC is to release its monetary policy statement on Wednesday, its last for the year, followed by a news conference by Fed Chair Janet Yellen.
Sun Yonggang, a Shanghai-based macroeconomic strategist at Everbright Futures Co., was quoted by Bloomberg as saying: “The key to gold’s direction will be the Fed’s language this week […] Precious metals have been resilient as the dollar’s rally paused.”
On the COMEX in New York, gold for December delivery had fallen $8.5 to $1214.6 as of 08:28 GMT. At last check, the more actively traded February contract stood at $1,213.3 down 0.71 percent intraday. The Wall Street Journal cited analysts at Barclays as saying that exchange traded product holdings in gold had stabilized so far this month according to latest data.
“The CFTC data for the week ending Tuesday 9 December showed that net speculative positioning in COMEX gold increased by 25.5k lots, driven mostly by fresh long positioning to the tune of 16.2k lots, while shorts came off by around 9.3k lots, reflecting short covering as prices reached their peak since the end of November,” said the analysts.

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