GOLD PRICE

The Bank of Japan (BOJ)  has elected to maintain the current rate of interest with no change, as predicted by the vast majority of polled economists. Trade protectionism, falling oil prices, and increased sales taxes were all influential factors that will impede economic growth prospects for Japan in the near future.

Initial applications for unemployment benefits in the US dropped last week along with the four-week moving average for such claims, indicating strong activity in the tight labor market.

The latest reading on Philly Fed manufacturing declined to the lowest level in over two years. The weakness in the gauge is yet another possible indication of a slowing economy. The disappointing data appears to be part of a larger trend as some key data points have seen significant declines in recent weeks.

The central bank of England has chosen not to increase rate hikes for the time being, with future monetary policy regarding rate hikes uncertain and dependent on the outcome of Brexit which will be revealed in under 100 days.

Existing home sales data released by the National Association of Realtors (NAR) shows that home sales increased for the month of November but hit a 7-year low annually.

U.S. home building is showing signs of recovery in select areas with November’s home building report showing a pronounced increase in multi-family home building. However, single family home construction is in decline which points to a weakening housing market overall.

A rate hike at this week’s FOMC meeting has nearly 100% chance of occurring. Overall, we have seen financial conditions getting tighter and growth data slowing but remaining at solid levels.

The latest reading on Empire State manufacturing took a decided turn lower today as the gauge sank to a 19-month low. This key data point is yet another potential symptom of a slowing economy.

Happy Monday, traders. And welcome back for the last full trading week of 2018. Gold has popped back through $1240/oz this morning, likely taking some fear-based momentum from the tumult in equities at the end of last week.

Happy Friday, traders. What kind of week has it been? Packed with macro and geo-political happenings, to be sure; but also, somehow far calmer than I would have anticipated. On this Friday morning it seems that US Dollar and gold markets feel similarly, as we’re seeing spot price for the yellow metal fall farther below $1240/oz on the back of a pre-market rebound in dollar-strength.

Gold prices have experienced losses today as the Commerce Department’s data on Retail Sales show strong activity, offsetting fears that the economy is slowing down. Core retail sales rose 0.9% in November compared to the 0.4% expected by economists.

The gold market is under some pressure in early action Friday following more weakness in Chinese economic data overnight. Hong Kong stocks declined by over 2% as growing concerns over a slowdown hit equities hard.