Gold will end August in the red, despite the fact that it is increasing in price on Wednesday
Gold is growing in price on Wednesday because of the weakening of the US dollar. However, most likely, the precious metal will finish the month with the negative dynamics after showing the two-month growth on the background of the market forecasts on the increasing rates by the Fed.
In the middle of the day the price of gold was $ 1.314,32 per troy ounce against $ 1.310,65 per ounce at the closing of the trading session yesterday. Futures contracts for gold in the United States have grown by $ 0.8 per ounce to $ 1.316,30.
At the end of this week the NFP (nonfarm payrolls) data will be published. This report is one of the most important macroeconomic indicators of the employment in the United States, affecting the dollar. NFP shows the number of all US employees outside the sphere of agriculture, except for some categories of the staff. Following the statements of the Fed officials about a probable rate increase in 2016, investors are waiting for NFP in order to get hints about the terms of the US interest rates increase.
Ole Hansen, a chief analyst on commodity markets at Saxo Bank said: “All are a bit tense before the Fed meeting in September, taking into account the recent comments by Janet Yellen. The strengthening of the US dollar and real interest rates also play a role. “
“But it all seems to be going slowly. We have not seen any panic from investors in exchange-traded funds, whose assets have grown over the last month, while hedge funds have reduced their net long positions by only 8 per cent since the July’s peak, “- said Ole Hansen.
In August the repository of the world’s largest gold exchange-traded fund SPDR Gold Shares has emptied by 2.7 tones, while in July the fund added 8 tons.
Silver was worth $ 18.71 per ounce against $ 18.565 to the end of the trading session on Tuesday. The cost of platinum was $ 1.059,50 compared to $ 1.052,00, while palladium cost $ 681.72 versus $ 677.50.