PT Equityworld estimated the price of gold for next trade potentially weak influence of profit taking after strong overnight. But if demand continues to rise in China and India may lift gold prices. Gold prices are expected to move in the range of $1.182 Support-$ 1.180, but if the price rises will move in a range of $1.186 Resistance-$ 1.188.
Gold prices strengthened in late trade Tuesday on Wednesday (10/01) triggered a weakening of the U.S. dollar and the market reassess the Outlook for the US economy with Donald Trump was sworn in as President at the end of this month.
The price of spot gold rose LLG 0.93 percent on $1, 183.61 per ounce, while U.S. gold futures prices for March delivery closed $11.50 higher at $1, 184.90. This precious metal is down more than 12 percent in the last quarter as the victory election Trump encouraging expectations that tax policy and budget submission will boost the dollar and inflation, prompting higher US interest rate hikes.
Precious metals are recorded the biggest weekly increase in two months last week, lost some of the gains on Friday after a report on U.S. payrolls supports the view that the Federal Reserve will raise interest rates this year, which increases the U.S. dollars. Analysts expressed much have predicted a rise in the dollar, and the same goes for the gold.
People now back their expectations to get solid evidence of acceleration in the growth of the U.S. economy, or further guidance from the new Government on what their plans are, and whether they will be able to give you something close to what the people have expected.
Strong outflow from the world’s largest gold-backed ETF has diminished lately, while the purchase of seasonal Asian gold market is getting bigger, where India’s wedding season and entered in China approaches the lunar new year.
Managers of hedge funds and money managers cut their bullish positions on COMEX gold contract for the eighth week in the week up to 3 January, took possession of them to the smallest in 11 months, data showed on Friday.
PT Equityworld : Gold is highly sensitive to U.S. interest rate hikes
Which increases the opportunity cost of holding gold while improving u.s. dollars. Silver rose 0.89 cent at $16.63 per ounce, while the platinum was 0.71 per cent higher at $973.75. Palladium rose $0.2 per cent at 757.95, after touching a five-week high at $768.10. The rally of more than 11 percent last week.