The Chicago Mercantile Exchange lowered the margin at the close of the day to an initial of $5,060 from the $5,940 and the maintenance to $4,600 from $5,400 for the 100 troy ounce Gold contract! This may reflect a decreased volatility prediction.
Weekly Gold Digger
The US Dollar may be overbought, but should remain strong in the near-term. Traders focus on the Fed and when they may tighten. Analysts speculations are ranging from early 2015 through 2016. The Key here is “wage inflation” and when US Fed Chairperson Janet Yellen feels that the wages are increasing along with the employment numbers. Gold has been and may continue to hold its range with the geopolitical conflicts supporting.
The Gold market received some support in the recent week by a Portuguese bank defaulting on a payment. The conflict in Iraq and the Ukraine continue to support the Gold as well.
The US Dollar is in a downtrend yet the Gold remains in a consolidation. The US Dollar under pressures is supporting the Gold at this point.
The Gold market has been the background safety net for the market.
Gold has remained a popular hard currency, inflation hedge, deflation, safe-haven product and investment in recent years and as a way of diversifying risk as it correlates to a variety of markets.
The US Dollar has been pummeled in light of the potential Ukraine conflict! The vote on the referendum is Sunday where the Crimean Peninsula may be annexed to Russia.
Gold got a boost today (February 7) on the disappointing jobs numbers! The worse the economy, the better for Gold. The harsh weather conditions have been the scapegoat again for the lackluster data.
Gold has been regarded as a safe-haven harbor against inflation, deflation, currency devaluation and times of fear and anxiety when traders flee from the stock market, treasuries and other assets. The Gold market will typically have an inverse relationship to the US Dollar in which the dollar can pressure the Gold as the US experiences… Read more.
The US Dollar, while in a slight correction at present, is still forecast by most to remain strong for the long-term. While investors have come out of treasuries and gold alike, the allocations have remained strong in both the US Dollar and the Stock Market. There has been a break between the physical and the… Read more.