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    XAU/USD: optimism is increasing in the financial markets on 23.02.2016

    Yesterday’s rise in the stock indices was caused by the increasing purchases of the risky assets by investors. It became known yesterday that in February, business activity index in the manufacturing sector fell to 51.0 versus the forecast of 52.0 and the level of 52.4 in January. Market participant took it as an indication that the US Fed would not raise interest rate in March. At the same time this fact will help to maintain soft monetary policy for the American economy, giving grounds for the growth in the stock market.

    The rise in oil prices triggered the increase of the indices and commodity currency yesterday.

    Optimism of the financial markets and increasing risk appetite caused yesterday’s sales of gold and state bonds and encouraged investors to buy shares. American indices rose by 1.5%.

    At yesterday’s trading session at COMEX gold futures fell by 1.7%, almost to $1210.00 per ounce. The price of the other precious metal also fell. Futures for silver dropped by 1.2%, futures for platinum fell by 1.9% and those of palladium - by 0.1%.

    On Monday, the price of gold has been reducing for the third session in a row due to the increasing optimism in the financial markets.

    The price of gold has been reducing for the third consecutive session after the rise of 18% from the beginning of the year due to increased market volatility and poor economic data.

    Some European and American news is scheduled for the release this week. If investors’ optimism continues (due, to expectations of expansion of QE program in Eurozone and continuation of monetary easing policy in the USA), the demand for European and American indices will increase while the price of gold will go down.


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