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Gold Trading Week Ahead – 27 April 2015


Bullion index - the week ahead

This week could see good trading opportunities in precious metals given the large number of events and data that are due out.

Harley Salt precious metals analysis 27 April, 2015
By Harley Salt

Co-founder, Director of Sales Trading at Bullion Index

Gold ended last week on a weak note having failed to hold the key US$1,200/oz level, it closed in New York at US$1,180.40/oz, just above the previous support seen at US$1,180/oz.

Strong equity markets put pressure on the price of gold, with investors favouring stocks over precious metals. Last week stocks were in focus as we had a number of key U.S. companies reporting, that continues again this week with the likes of Apple, Coca-Cola, Visa, Twitter and Exxon all reporting.

Greece still continues to dominate investors thoughts, with a breakthrough on debt talks still far from being reached, however this week the focus will be back on the Fed with the Federal Open Market Committee (FOMC) decision on rates and its statement due.  

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Monday the US Services PMI is due out, a reading below 59.2 could see support for gold improve.

sees Japanese Retail Sales and UK GDP (Q1). UK GDP data will allow traders to see if the rate of growth in the UK has increased with the Bank of England looking to tighten rates.

Wednesday will see the release of the US Consumer Confidence. Last month the reading was 101.3 with the market expecting it to rise to 102.5.Should the reading come in below expectations safe-haven assets such as gold will see a pick-up in trade. German CPI data is also due out Wednesday with the YoY rate expecting to show a significant increase. Also due out is US GDP (Q1) data which is expected to show a slow-down in growth to 1.1%, down from 2.2% at the last reading.

Thursday is the big day for economic data with the FOMC Rate Announcement and Statement due out. Investors will be looking for any change in tone, wording, anything that will give a clue as to when the Fed looks like pulling the trigger on rates. US Jobless Claims data is also out on Thursday as is Chicago PMI.

Friday sees Chinese PMI, Japanese CPI, Australian PPI, UK Manufacturing PMI and University of Michigan US Consumer Sentiment all due out.

It should be another volatile week across precious metals markets and for that matter stock, bond and fx markets. I expect to see gold test the US$1,191/oz resistance level this week while key support is seen at US$1,173/oz.

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