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October 16, 2017

Gold price heads back to $1,350?

Gold price heads back to $1,350?

Gold price was stable above the psychological level of $ 1.300 on Monday amid concerns over Iran’s nuclear program, while strengthening of the dollar restrained the asset’s growth. Price was at $1.304.50 per troy ounce, compared with $1.304.47 an ounce at the close of trading on Friday. Futures for gold in the US for December delivery went up by $2.2 to $1.306.9 per ounce.

The dollar advanced at the first day of this week but lost momentum for the Yellen-fueled rally, while Asian stocks jumped to a maximum of 10 years, as China’s buoyant economic data contributed to higher commodity prices.
The euro continued to fall after the head of Catalonia, Carles Puigdemont, could not clarify whether he proclaimed independence of the region from Spain.

Prices for precious metals rose 0.9 percent on Friday after US President Donald Trump warned that the US could withdraw from the agreement on Iran’s nuclear program concluded in 2015. The data, which showed that inflation in the US remains weak, also supported the prices.

The US economy remains strong, and the strengthening of the labor market requires a gradual increase in interest rates in spite of sluggish inflation, the US Federal Reserve Chairman Janet Yellen said on Sunday.
Hedge funds and managers have reduced the number of long positions in gold at the COMEX exchange for the fourth consecutive week of the week to October 10, according to the US Commission on Commodity Futures Trading released Friday.

Political disruptions in the Eurozone and stalling inflation dynamics in US may further put pressure on Gold and despite the buoyant moods on December Fed policy (which has already price in the markets), the price can easily test its September peak at $1,350 level

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