Deflationary pressure in China allowed to slow down the increase in gold prices, now in the market there is a pullback from a maximum of three months levels. Also, such a situation could have a negative impact on expected increase of Fed interest rates and put them on a more long-range period.
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Following the meeting of OPEC, Indonesia once again will be part of the cartel in December. This is even more reason to talk about curbing production volumes, believe experts and members of OPEC. Indonesia, which left OPEC in 2009, will increase the part of the cartel to 13 countries. It is also going to raise the overall oil production by 900,000 barrels per day to 32.5-million. Now oil production by OPEC countries significantly exceeded the approved quota of 30 million barrels per day.
Gold has risen in price to a maximum of the last three weeks. This is due to the fact that the Fed in its protocol has made it clear that it would not increase interest rates any time soon. In yesterday's trading session, the gold was trading near the mark of $1 138.56 per troy ounce, the current increase of the precious metal reached $1 154.01. Futures for December rate in the United States have increased in price by $ 9.50 to $1 153.80 per ounce. The total growth of the spot price for the week will be 1.3%.
The value of gold has increased after the announcement of results of the Asian trading session. COMEX, Department of Commodity Exchange in New York, provides the following numbers on gold futures for December delivery: $1 148.40 per troy ounce, which rose 0.17%.
One of the major Japanese financial company Nomura does not believe in increasing the growth of the Chinese economy. Its forecast for 2015 now amounts to 6.8% versus 6.9% previously expected. The forecast for next year also has changed from 6.7% to 5.8%, according to the Bloomberg agency.
At today's morning session in Europe, gold futures fell to a minimum of three weeks. This is due to the fact that attention of traders focused on the upcoming data on changes in number of people employed in the non-agricultural sector of the US, meanwhile, promises to increase rates this year are supporting the US currency.
Gold is still under pressure of the Fed's rates expectations. On Monday, prices for the precious metal continued to decline, traders and investors are preparing for today's speech from the Three Fed officials: Tarullo, Evans, Williams. At today's tradings on the Mercantile Exchange Comex in New York, gold futures for December delivery fell by 0.72% to $1137.30.
In his recent speech, board member of the ECB Vitas Vasiliauskas recommended the policy to follow on coming out macroeconomic forecasts at the end of 2015, and then to make the right decision about the increase of pulses. "I think we need to wait for December, I have doubts that we will be ready in October," - believes Vasiliauskas, head of the Bank of Lithuania, in his interview in the UK yesterday, he also adds that in October, it is not worth discussing anything too, short period of time.
At the beginning of today's trading session, European stocks were again under pressure: DAX index has failed by 285 points, or 2.9% at the time of news release. Next decline in commodity prices continued more by inertia, however, it is strongly influenced on concerns of market due to the crisis in Asia. According to the Asian Development Bank GDP forecast this year will fall by 0.5%, from 6.3% to 5.8%. Market participants are predicting the Chinese growth at lowest levels of 1990.
"Majors" of the currency market - US dollar, euro and Japanese yen - have taken a wait position with a minimum dynamics against the background of the future Fed meeting. All market participants are looking forward whether will be there an increase of interest rate by the Fed for the first time in 9 years. Euro shows slight fluctuations around $1.1340, trying to hold a position of growth, obtained last week. The US dollar now is now cost 120.65 yen, the euro is sold for 136.80 yen.