Gold futures are fluctuating between gains and losses many investors are left stuck to the sidelines despite the ongoing uncertainty over the timing of a retraction in the Fed’s stimulus programme, The Comex division of the New York Mercantile Exchange reveal that gold futures for the last quarter for this year is speculated to trade at $1,388.60 per troy ounce.
Gold was traded at a range of $1,382 to $1,386 per troy ounce. Gold futures were finding support at a low of $1,356 per troy ounce for the month of August and a high of $1,415 in the beginning of September. There were plenty of uncertainty regarding the Fed’s tapering of more than $85 billion monthly asset purchase programme after data showed that the US economy is predicted to add 169, 000 for the latter half of the third quarter.
The rather disappointing data resulted in investors reevaluating their expectations regarding the timing of a pullback in the Federal Reserve’s stimulus policy programmes . Gold traders have been closely searching for US data reports that would be able to assess the strength or weakness in case the Fed will limit its bond purchases.
Meanwhile, the central bank is scheduled to convene later this month to review the economy surrounding a highly possible military strike on Syria.
Lawmakers in the US are likewise scheduled to reconvene next week after a five-week summer-break hiatus with an impending vote on whether or not they will agree on the proposed military action against Syria for its alleged use of chemical weapons.
The Syrian President is strictly denying any involvement of the recent chemical attack that killed well over 1,400 people including hundreds of children. US President Barack Obama is decisive in his intended military strike and this was rebutted by the Russians, specifically the head of state Vladimir Putin, is against the military strike against Syria without the concurrence and approval of the United Nations.
Gold prices have soared to a three-and-a-half month high having been picked up despite indications that the US was this close to taking military action against the Syrian government. Elsewhere on the Comex, silver for the month of December discard 0.65 % in its trade at $23.73 per troy ounce while copper for the same month delivered an increase 0.6 % to trade at $3.281 a pound.
The Chinese National Bureau of Statistics in an earlier statement said that the consumer price of inflation went up 2.6 % last month in line with the expectations while there still persists of a 2.7 % in the previous month. The inflation report came in a day later following data that revealed China’s trade balance broadened more than was expected in the preceding months with easing concerns over delay in the world’s largest economy.
The official trade data that was released earlier this week regarding China’s trade surplus expanded to $28.6 billion from a surplus of $17.8 billion last month as compared to predictions for a surplus of approximately $20 billion. Moreover, Chinese exports increased 7.2 % last month which beat expectations for a 6.7 % increase and following another 5.1 % gain in profits in the preceding month.
China is considered the world’s largest copper consumer and it accounts for nearly 40 % of the world consumption of last year’s copper production. Japanese data revealed that Japan’s economy expanded by a seasonal 3.8 % which was above the prior estimate of just 2.6 %.
Sentiment was also augmented following Tokyo’s selection by the International Olympic Committee to host the 2020 summer Olympics after Rio in 2016.