Will gold maintain it’s momentum amidst interest rate announcements?
Bullion.Directory precious metals analysis 3 March, 2015
By Harley Salt
Co-founder, Director of Sales Trading at Bullion Index
One of the key drives of gold at the moment is the speculation as to when rates will be tightened, any signs of a delay is providing a boost to the price of gold.
This week we have a number of Central Bank interest rate announcements, including the Bank of England (Thursday), European Central Bank (Thursday), Reserve Bank of Australia (Tuesday) and Bank of Canada (Wednesday).
Euro inflation flash numbers are released on Monday, as are ISM Manufacturing PMI figures in the US, while Tuesday sees China CPI data and Canadian GDP released. On Wednesday in the US the ADP Employment change for February is announced, this will give traders an indication on what to expect from the official labour market data due out on Friday. The ECB President Mario Draghi will likely be quizzed about Greece in his press conference on Thursday.
The biggest piece of data out this week is the Non-Farm Payrolls report which will be released on Friday in the US (238k expected). Look out for labour force participation in the Non-Farm Payrolls data, higher than expected labour force participation could strongly influence the Fed’s decision to move on rates sooner rather than later.
Going into the new month, we see the current resistance on gold being at US$1,220oz and the support at US$1,190oz.
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