We use cookies (including third-party cookies such as Google) to remember your site preferences and to help us understand how visitors use our sites so we can improve them. To learn more, please see our privacy policy and our cookie policy.

To agree to our use of cookies, click 'Accept' or choose 'Options' to set your preferences by cookie type.

Options Accept
BullionVault

CHARTS

  • English
  • Deutsch
  • Español
  • Français
  • Italiano
  • Polski
  • 日本語
  • 简体中文
  • 繁體中文
  • Daily audit
  • Help
  • Contact
  • Deposit
  • Login
  • Open account
  • ABOUT US
    • About BullionVault
    • In the press
    • Reviews
    BUY/SELL BULLION
    • Vaulted gold & silver
    • -Live order board
    • -Daily Price
    • Coins for delivery (UK)
    INVESTMENT GUIDE
    • Guide to gold
    • -How to buy gold
    • -Gold investment
    • -Gold investment plan
    • -Investment insurance
    • -Compare asset performance
    • Guide to silver
    • -How to buy silver
    • Guide to platinum
    • -How to buy platinum
    GOLD NEWS
    • Gold news front page
    • -Gold price news
    • -Opinion & analysis
    • -Market fundamentals
    • -Gold/Silver Investor Index
    • -Infographics
    CHARTS
    • Gold price
    • Silver price
    • Platinum price
    • Price alerts
  • Login
  • Open account
  • BUY/SELL BULLION
  • Vaulted gold & silver
    • ⤷
    • Live order board
    • Daily Price
  • Coins for delivery (UK)
  • INVESTMENT GUIDE
  • Guide to gold
    • ⤷
    • How to buy gold
    • Gold investment
    • Gold investment plan
    • Investment insurance
    • Compare asset performance
  • Guide to silver
    • ⤷
    • How to buy silver
  • Guide to platinum
    • ⤷
    • How to buy platinum
  • GOLD NEWS
  • Gold news front page
    • ⤷
    • Gold price news
    • Opinion & analysis
    • Market fundamentals
    • Gold/Silver Investor Index
    • Infographics
  • CHARTS
  • Gold price
  • Silver price
  • Platinum price
  • Price alerts
  • ABOUT US
  • About BullionVault
  • In the press
  • Reviews
  • Help
  • Contact
  • Daily audit
    • English
    • Deutsch
    • Español
    • Français
    • Italiano
    • Polski
    • 日本語
    • 简体中文
    • 繁體中文

Gold News

Live support

NEED HELP? ASK US NOW

Search form

Gold News front page

Gold Price News

Gold Prices Sink as 'Kill or Cure' Stimulus Spikes Real Interest Rates Fastest Since 2013

More...

Gold Investing In Depth

Learn about gold bullion bars

Learn about gold bullion coins (and costs)

Gold investment: Why & how?

Gold Investment Analysis

  • Latest Gold Investor Index
  • Diversification: Gold as investment insurance
  • 40-year Asset Performance Comparison Table

Gold Articles

Opinion & Analysis

Gold Price News

Investment News

Gold in History

Gold Books

Gold Investor Index

Gold Infographics

Archive

  • February 2021 (23)
  • January 2021 (25)
  • December 2020 (24)
  • November 2020 (23)
  • October 2020 (25)
More...

List of authors

Gold Price Hits 5-Week Low as Dollar Gains on ADP Jobs Data, Trade Deficit 'Looms'

Wednesday, 3/08/2017 13:51
GOLD PRICES fell through what technical analysts called "immediate support" at $1210 per ounce Wednesday lunchtime in London as the US Dollar rose again after new data said the United States added far more new jobs than expected in February.
 
The private-sector ADP report said US payrolls expanded by 298,000 last month, beating consensus forecasts of 190,000.
 
World stock markets held flat overall as commodities slipped once again with government bond prices ahead of next week's clearly-flagged US Fed rate rise.
 
Silver tracked the drop in gold prices, also falling to 5-week lows with a loss of 3.5% for the week so far.
 
"Fiscal policy is now the key driver of the Dollar," says a note from Chinese-owned ICBC Standard Bank's FX strategist Steven Barrow, predicting a further 10% gain in the Dollar in 2017 on "deficit expansion, lower taxes on repatriated profits, and a border tax."
 
But "longer-term [its] prospects are not as rosy," Barrow warns, with the US trade deficit "likely to widen, not improve, and that could send the administration on a mission to weaken the currency deliberately."
 
New data yesterday put the US trade deficit at its widest in 5 years in January.
 
Chart of US trade deficit vs Dollar Index
 
Chinese gold prices had earlier caught up with Dollar-gold's drop overnight, retreating to a 3-week low in Yuan terms but extending the premium – over and above London quotes – to $17 per ounce.
 
That was the highest incentive to new bullion imports since before late-January's Lunar New Year holidays, suggesting solid demand in the world's No.1 consumer nation.
 
Gold buying in India – pushed into the No.2 slot since 2013 – "will recover" this year according to mining-backed market development organization the World Gold Council after 2016's collapse amid high import tariffs, new sales taxes and demonetization of 85% of the country's cash.
 
"The down move should continue towards projections at $1200/1196," reckons the latest technical note from French investment bank Societe Generale.
 
Having broken the 38.2% retracement of gold's January to February rise, "New support comes in at 1191.10 – the 50% Fibo level," said bullion bank Scotia Mocatta's team last night, also pegging near-term support at the 50-day moving average around $1210.
 
The Fed Funds futures market "has now priced in an 88-90% chance of a rate hike later this month," notes Swiss refining and finance group MKS Pamp's dealing desk, "which has sapped the momentum of gold."
 
Alongside rising Eurozone and US bond yields Wednesday, UK Gilt yields also rose, making the cost of borrowing more expensive to the government as UK finance minister Phillip Hammond raised his GDP growth forecast but warned there is "no room for complacency" about the economy as the 2-year process of quitting the European Union begins. 
 
The British Pound fell to 2-month lows as Hammond spoke, but Sterling gold prices still fell back below £1000 per ounce – a 3-year high when reached last June on the UK's Brexit referendum result.
  • Reddit logo
  • Facebook logo
  • Twitter logo
  • Google logo
  • Yahoo logo
  • LinkedIn logo
  • Digg logo
  • StumbleUpon logo
  • Technorati logo

Adrian Ash is director of research at BullionVault, the physical gold and silver market for private investors online. Formerly head of editorial at London's top publisher of private-investment advice, he was City correspondent for The Daily Reckoning from 2003 to 2008, and is now a regular contributor to many leading analysis sites including Forbes and a regular guest on BBC national and international radio and television news. Adrian's views on the gold market have been sought by the Financial Times and Economist magazine in London; CNBC, Bloomberg and TheStreet.com in New York; Germany's Der Stern; Italy's Il Sole 24 Ore, and many other respected finance publications.

See the full archive of Adrian Ash articles on GoldNews.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn

 

Mobile apps

 - live trading 24/7

 - buy & sell instantly

 - up-to-the-second charts

 

 

 

Daily news email
Go to 'communications settings' 

Get the latest daily gold price news free by email

Latest gold news by email

 

 

 

Gold Investor Index
2 February 2021

Silver Investor Index

Record New Year 2021

 

 

 

LBMA webinar
21 January 2021

LBMA

London gold trading

 

 

 

Bloomberg TV
1 February 2021

Bloomberg TV

r/silver-surge

 

 

 

The Alchemist
1 December 2020

Newton

True Gold/Silver Ratio

 

 

 

  •  Email us

Market Fundamentals

  • Green Energy: Platinum Key to New 'Hydrogen Catapult'
  • 2021 Gold Price to Rise 11.5%: LBMA Forecast
  • 'Cut Bullion Duty to Cut Smuggling': India's Gold Industry
More...
  • Cost calculator
  • Cookies
  • Terms & conditions

©BullionVault Ltd 2005-

  • Twitter
  • Facebook
  • LinkedIn
  • YouTube

Save your cookie preferences

We use cookies to remember your site preferences, record your referrer and improve the performance of our site. For more information, see our cookie policy.

Please select an option below and 'Save' your preferences.

Save

You can update your cookie preferences at any time from the 'Cookies' link in the footer.

Secure auto-logout warning

You have not been active for some time.

For your security you will be logged out in   minutes unless you take action.