Solid Gold: Shanghai Gold Exchange withdrawals on the uptrend
By tracking the Shanghai Gold Exchange withdrawals, investors can get a good picture of the short-term direction for demand in China.
Tracked by the Federal Reserve, the weekly US Dollar Index measures the value of the dollar compared to the currencies of its significant trading partners.
The outlook on gold is mixed right now. Uncertainty and fear in the rest of the world, especially Europe, is leading investors toward gold.
As long as the Fed doesn’t reach its PCE target of 2% core inflation, it’s likely to let the inflation rate run. This will support gold prices.
US consumer spending in December declined by a seasonally adjusted 0.3% month-over-month. That’s the biggest decline since September 2009.
The Fed assesses the US jobs report to determine whether the economy is strong enough to withstand higher interest rates. Recent numbers are improving.
It’s important to track the US PMI, and to keep an eye on the manufacturing indices of other economies—particularly the ones that impact the US dollar most.
The consumer sentiment index is a key indicator that gauges the average US consumer’s confidence level. Retailers, economists, and investors take note.
Crude oil prices rose to $53 last week but fell again when estimates from US exploration and production companies showed no signs of slowing production.
In January, gold holdings surged because of the Swiss National Bank’s decision to remove the euro cap, as well as other developments.
Agreement on the Greek bailout extension sent gold reeling to under $1,200 per ounce. Highly indebted Greece now has four months to get its ducks in a row.
Investors usually view gold as an inflation hedge. In this series, we’ll explore factors responsible for the recent volatility seen in gold prices.
April gold futures were trading in a downward channel. Gold prices broke out of the channel resistance of $1,213 per ounce on Thursday, February 26, 2015.
Gold prices are in a deep downward trend. They declined almost 36% since August 2011. Gold prices continued their downward trend in February 2015
The important support for WTI crude oil is at $48 per barrel, as stated earlier. WTI crude oil prices hit this mark many times in February 2015.
WTI crude oil prices have been highly volatile in February 2015. Last week, the EIA reported that commercial crude oil inventories rose by 8.4 MMbbls.
The increase in natural gas prices was reflected in the United States Natural Gas Fund (UNG). UNG also increased and settled at $13.74.
Natural gas April futures contracts closed near the day’s high—up by 0.99% on February 27, 2015. The total volume for the day was at 107,303 contracts.
Natural gas prices declined on Thursday, February 26, 2015, and this reflected in the UNG ETF. The UNG ETF declined.
West Texas Intermediate (or WTI) crude oil is showing the emergence of a multiple tops pattern. A strong dollar and inventory data pushed crude oil down.
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