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What’s Next for Gold After Weekly Rally?

December 7, 2015 at 16:07 by Vladimir Vyun

Gold rallied last week, demonstrating the first weekly gain in seven weeks. What is next for the precious metal? Can bullion keep its gains? While it is hard to tell for certain what the future holds for gold, it is worth looking at factors that will be influencing prices this week. The calendar is relatively light on important events as the holiday season nears, but there will be several important economic releases from the United States and China — two world’s biggest economies, which have the biggest impact on moves of gold prices.

Let us start with China. For a long time, the Asian nation has been a source of concern for markets. While its economy demonstrates relatively strong economic growth, the expansion is slowing. This is important for all markets, but particularly for gold as China is the biggest user of the metal. Basketball Bounce House There are several important reports from China scheduled for this week: the trade balance data on Tuesday, the Consumer Price Index for Wednesday and industrial production for Saturday. Analysts do not expect big changes compared to the previous readings.

As for the US data, Thursday will reveal the jobless claims report. Friday will be full of important indicators like the Producer Price Index, retail sales and the consumer sentiment from the University of Michigan. And here too no big changes are expected.

Does no news mean good news for gold? Unfortunately, it is not so. The problem for bullion is the outlook for monetary tightening from the Federal Reserve. Unless US data comes out significantly below expectations, traders will continue to count on an interest rate lift-off. This is likely to push prices for the metal lower.

Trading NRG predicted:

This recent rally of bullion prices could be short lived and we could see them change course, especially if the upcoming U.S. reports don’t disappoint or miss market estimates.

If you have any questions and comments on gold today, use the form below to reply.

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