Gold prices rose 2.0 percent last week, boosted by the announcement of the Federal Reserve and weak GDP report. The Fed continued to maintain the course of interest rates, maintaining levels at 0.25%. September hike is possible, but the Fed will want to see the strongest numbers before making a move. On Sunday, the FOMC William Dudley, a close ally of Janet Yellen, said the fallout Brexit posed a risk to the US economy and urged the Fed to proceed with caution before raising interest rates. The USA. will release the growth of wages and nonfarm payrolls later in the week, and these key employment figures will be closely monitored by the Fed as it ponders a possible rate hike. If these releases do not meet expectations, the probability of a move in September will decline drastically. Preliminary GDP for the second quarter disappointed, as markets had expected a strong gain of 2.6%, while the economy responded with a much smaller gain of 1.2%.
The week started with some soft pitches, helping gold remain at the level of $ 1,350. Manufacturing ISM manufacturing PMI and prices pointed to expansion, but both lost their estimates. At the same time, prices of Construction disappointed with a drop of 0.6%, its fourth decline in the past five months. These figures indicate that there is weakness in the manufacturing and construction continued.
/ USD XAU Basics
Domingo (July 31)
21:15 FOMC Member Dudley Speaks William
Monday (August 1)
9:45 US Final Manufacturing PMI. 52.9 estimate. actual 52.9
10:00 ISM Manufacturing PMI. 53.1 estimate. 52.6 reais
10:00 spending on US construction. 0.5% estimate. Real -0.6%
10:00 ISM manufacturing prices. 61.0 estimate. actual 55.0
Tentative - Official US loan Survey
* Key Announcements are highlighted in bold
* All times are EDT release
XAU / USD on Monday August 1, 2016
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