Surprisingly strong data does little to hold back gold’s gain
Bullion.Directory precious metals analysis 27 February, 2015
By Harley Salt
Co-founder, Director of Sales Trading at Bullion Index
Over the past two trading sessions we have seen strong gold buying at our Dubai and Singapore trading hubs in the $1205-$1209 range.
Gold premiums on the Shanghai Gold Exchange compared to the interbank spot gold market have firmed to as much as $5 compared to $2-3 before the Lunar New Year holiday. Data released on Thursday showed a rise in Chinese gold imports from Hong Kong for the month of January to 76 tonnes. Investors are always interested in this data, it is the only way to get somewhat of a reading as to what is going on with Chinese gold demand given China does not release official import data for other ports such as Shanghai or Beijing.
With the Federal Reserve in no rush to lift rates we at Bullion Index expect gold to test the $1230 level in the short term.
In US trading later today gold traders should be paying close attention to GDP Q4 data (forecast 2.1%) and January Pending Home Sales (forecast 2%). Any sign of weakness in the US economy will be a positive for the price of gold.
This analysis was originally published here
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