Monday, 09 November 2015 15:36

Pull The Trigger Now Amid Strong US Dollar

Gold have been trading in a narrow range on Monday session between US$1088 - $1092 per oz. Most of the damage was done on Friday when the Fed chair hints a strong signs of interest rate hike. We should expect a 0.25 basis point hike in December when the US data shows improvement. US dollar continues to enjoy it's strong uptrend against all other major currencies, bullion market was under pressure amid signs of US rate hike. 

Now, most traders and investors are asking themselve "when" the rate hike happens instead of "if". We truely believe that FOMC will pull the trigger in December while it's the best time to enter the bullion market. When the economy starts to see improvement over the course of 2016, the word "inflation" may kick in and assets tied to inflation may appreciate in value. Gold and silver both comes into the puzzle while inflation kicks in. One important data to watch is the crude oil price in 2016. If we saw a 50% hike in crude prices to $66 per barrel, we may soon find the inflation rate topping 2% and The US Fed may consider a steady rate hike throughout 2016 and 2017. 

 

Watchlist

  • Crude oil price
  • FOMC December rate decision
  • US dollar index 
  • Labor market condition

 

Published in Top Headlines
Wednesday, 04 November 2015 09:48

December Rate Hike A Live Possibility

With the recent improving US economic data, Fed chair, Janet Yellen, said that December rate hike is a live possibility. The signal sends the US dollar on the uptrend and downtrend on the bullion market. Gold  and silver are trading at 1111.5 and 15.08 on Wednesday morning session respectively. US inflation is steadily meeting the 2% target but the net export data is soft. Investors are still hawkish on the FOMC meeting in December and extremely sensitive with all the US economic data until rate decision was made.

 

Watchlist

  • US Domestic spending condition 
  • US Net export data
  • US Labor market condition
Published in Top Headlines
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