19 Dec 2014
Gold relief rally capped again
FXStreet (Guatemala) - Gold has attempted the upside a couple of times over the past few days.
Gold rallied on the week but only to meet even more supply and plenty of it as the greenback reigns and risk sentiment is favouring the upside on a bullish outlook for the US economy, despite the concerns elsewhere currently, and into 2015 or beyond for the global economy as a whole.
The spot price again rallied overnight and from a two week low on actual physical demand in Europe as demand from Asia continues to be stepping up, adding support in an otherwise bearish market for the yellow metal.
As the US remains on the rails and set to recover, as suggested by Yellen yesterday in the FOMC events, the yellow metal could be expected to remain on the offer now that money supply has been reigned in by the US vs a disinflationary environment globally, cutting demand for gold as an inflation hedge while equities continue to rally.
$1,193 vs $1,212 had been the rounded range overnight for spot while $1,200 caps current sideways movement as we approach the Tokyo open on the last day of Asian trading for the week.
Gold rallied on the week but only to meet even more supply and plenty of it as the greenback reigns and risk sentiment is favouring the upside on a bullish outlook for the US economy, despite the concerns elsewhere currently, and into 2015 or beyond for the global economy as a whole.
The spot price again rallied overnight and from a two week low on actual physical demand in Europe as demand from Asia continues to be stepping up, adding support in an otherwise bearish market for the yellow metal.
As the US remains on the rails and set to recover, as suggested by Yellen yesterday in the FOMC events, the yellow metal could be expected to remain on the offer now that money supply has been reigned in by the US vs a disinflationary environment globally, cutting demand for gold as an inflation hedge while equities continue to rally.
$1,193 vs $1,212 had been the rounded range overnight for spot while $1,200 caps current sideways movement as we approach the Tokyo open on the last day of Asian trading for the week.