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May 3, 2016

Gold surges to January 2015 high, Apple declines 8 days in a row as Icahn sells his stake.

Gold surges to January 2015 high, Apple declines 8 days in a row as Icahn sells his stake.

Gold futures fluctuate around the key level of $1,300 during the morning US trading, as investors track the movement of currency market in anticipation of the comments of officials of the Federal Reserve System.
Gold for June delivery traded on the Comex division of the New York Mercantile Exchange rose to a session high of $ 1303.85 per troy ounce, then retreated to $ 1299.70, up $ 3.90, or 0 3%.

On Monday, gold rose in price to $ 1,306.00, the highest since January 2015.

Weak US dollar usually supports gold as it boosts interest to the commodity  as a safe heaven asset and decrease prices of dollar-denominated commodities for holders of other currencies.
Today  US dollar was down against a basket of currencies to a minimum 91.98, the lowest level since January 2015, and is now trading at 92.73, +0.22% today.
In early trading session Japanese yen rose to a fresh 18-month high against the dollar trading in tandem with the US currency at 105.57, while the euro reached its peak in August last year, $ 1.1600.

This year the USD index fell more than 6% due to lower expectations that the Fed will normalize interest rates due to concerns about the global economic downturn.
Traders will focus on the performances of officials of the Federal Reserve System, to get an idea about the balance of opinions in the Central Bank on further rate hikes.
At 14:30 GMT the Federal Reserve Bank of Cleveland President Loretta Mester led a discussion on the impact of monetary policy on market liquidity.
At 23:00 GMT the head of the Federal Reserve Bank of Atlanta Dennis Lockhart will speak about the economic outlook and monetary policy of the USA.

Gold prices have risen nearly 22% this year. The delay in raising interest rates tends to encourage demand for gold, as the costs of holding the asset are staying low, guaranteeing investors a higher profit.
In addition, silver futures for May delivery fell 6.6 cents, or 0.37%, to a price of $17.59 per troy ounce.
Copper fell 2.6 cents, or 1.17%, to $2,240 per pound increased against the background of concerns about the health of the Chinese economy after the country’s manufacturing activity declined in April, the 14th straight month.
Earlier, data showed that manufacturing in China by Caixin index dropped to 49.4 in April from 49.7 in the previous month, although expected to rise to 49.9 points.

Apple closed the eighth straight session with declines which was anti-record for the company since 1998, but premarket action points to weak growth.
Californian technology giant’s shares were down four sessions in a row, before the company reported on April 26 on the first decline in iPhone sales in the company’s history.
Apple’s stock continued to decline when investor Carl Icahn said the CNBC on April 28 he sold his entire stake in the company because of risk concerns about China.
Falling stock prices last week was the worst for the company since 2013 and the company closed Monday session decline by 0.11%, extending decline for eight sessions in a row what was the worst reading since July 1998 and was the fourth time in history the of the company. According to Bloomberg, Apple lost $79 billion market capitalization over the past eight sessions.
However, the fall may be coming to an end, as the company’s shares indicate 0.37% rise in premarket trading.

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