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GOLD: Buoyed By Weak US Data & China Stimulus

GOLD
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Gold is 0.2% higher in today’s Asia-Pac session, after closing 1.1% at $2657.10, a fresh all-time closing high, on Tuesday. 

  • Bullion was buoyed by Chinese stimulus measures announced yesterday, which created an optimistic backdrop for risk sentiment and a favourable reaction across the commodities complex.
  • Weak US data bolstered the case for deeper rate cuts. Lower rates are typically positive for gold, which doesn’t pay interest.
  • US Consumer confidence fell to 98.7 (cons 104.0), a sizeable slip after an upward revised 105.6 (initial 103.3) in Aug. Declines were seen in both the present situation and expectations components. The difference between those saying jobs were plentiful and those saying jobs were hard to get narrowed for an eighth month.
  • According to MNI’s technicals team, gold has pierced resistance at $2,642.7, with attention on $2,660.9 next, a Fibonacci projection.  After that, focus will shift to the $2,700 level. 
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Gold is 0.2% higher in today’s Asia-Pac session, after closing 1.1% at $2657.10, a fresh all-time closing high, on Tuesday. 

  • Bullion was buoyed by Chinese stimulus measures announced yesterday, which created an optimistic backdrop for risk sentiment and a favourable reaction across the commodities complex.
  • Weak US data bolstered the case for deeper rate cuts. Lower rates are typically positive for gold, which doesn’t pay interest.
  • US Consumer confidence fell to 98.7 (cons 104.0), a sizeable slip after an upward revised 105.6 (initial 103.3) in Aug. Declines were seen in both the present situation and expectations components. The difference between those saying jobs were plentiful and those saying jobs were hard to get narrowed for an eighth month.
  • According to MNI’s technicals team, gold has pierced resistance at $2,642.7, with attention on $2,660.9 next, a Fibonacci projection.  After that, focus will shift to the $2,700 level.