By the end of this year, the gold price fell to a lowest point this year at 1131$,also this month was the lowest compare to the rest of the year.
And one of the strongest reason was the strengthen of the US Dollar.
Also, today we saw the same scenario after the dollar gain two weeks high as Bloomberg reported and the add:
Holdings in gold contracts reached the highest in almost 22 months as investors added to bets that prices will drop. Futures fell before before the Federal Reserve releases minutes of its last meeting.
The aggregate number of futures contracts yet to be closed, liquidated or delivered rose to 459,657 yesterday, the highest since Jan. 22, 2013. Money managers have boosted their short wagers to the highest in four weeks, while long holdings dropped to the lowest since January, government data show.
Investor appetite for bullion has ebbed as the dollar jumped to the highest since 2009 against a 10-currency basket and the Fed moved closer to its first U.S. interest-rate increase in eight years, cutting demand for the metal as an inflation hedge. Gold futures slumped to the lowest in four years this month, heading for a second straight annual loss.
“The data show that a lot of people have eliminated their long exposure and are piling up their short bets,” Bart Melek, the head of commodity strategy at TD Securities in Toronto, said in a telephone interview. “The market is clearly worried about increase in interest rates.”
Gold futures for December delivery lost 1.2 percent to $1,182.20 an ounce at 10:48 a.m. on the Comex in New York. A close at that price would mark the biggest decline since Nov. 5. The metal fell to $1,130.40 on Nov. 7, the lowest since April 2010.
Aggregate trading was 27 percent above the 100-day average for this time, data compiled by Bloomberg show.
Bullion has declined for two straight months, the longest slump this year, as U.S. equities surged to a record and inflation failed to accelerate. Fed officials said last month that lower energy costs may hold down consumer costs in the near term.
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After the intervention of the US air force in the fight against Islamic State in Iraq and Syria, The US leaders think now it is a good idea to involve the US army too in this war to help the Iraqi army to defeat the Islamic State’s troops in the region .
Also, Bloomberg add in their report today as follow:
President Barack Obama’s top military adviser said more U.S. troops may be needed in Iraq for a “long and difficult” fight against Islamic State, as military planners assess the shortcomings of Iraqi forces.
Army General Martin Dempsey, chairman of the Joint Chiefs of Staff, told lawmakers yesterday that more complex operations in Iraq, such as efforts to retake Mosul or secure the Syrian border, may require deploying a limited number of additional American military advisers in action with Iraqi soldiers.
“I’m not predicting at this point that I would recommend that those forces in Mosul and along the border would need to be accompanied by U.S. forces, but we’re certainly considering it,” Dempsey said at a hearing of the House Armed Services Committee.
His testimony reflects a debate between some military and intelligence officers and civilians and White House officials following Obama’s pledge to end the U.S. war in Iraq. Analysts such as Anthony Cordesman of the Center for Strategic and International Studies in Washington, say it’s “far from clear” whether Obama’s current cap of 3,100 U.S. troops in Iraq will “come close to meeting the need.”
While Obama has ruled out combat “boots on the ground,” recent defeats make it obvious that Iraq “desperately needs forward U.S. advisers, not just joint operations centers in Baghdad and Erbil and advisers in the rear,” Cordesman wrote in a report this week.
Dempsey said that any expansion of U.S. forces in Iraq is likely to be modest since he doesn’t “foresee a circumstance when it would be in our interest to take this fight on ourselves with a large military contingent.”
The GBP/USD kept falling and broke through the support at 1.5720 and in the moment of writing this post it is at 1.5708. And this shows that the pair maybe heading to point reaches 1.5400.
Also, Bloomberg.com reported that :
The pound fell to the lowest in more than a year versus the dollar as the U.K.’s property slowdown deepened concern that growth has cooled, prompting investors to delay bets on when the Bank of England will raise interest rates.
Sterling slid to the least in three weeks against the euro after Monetary Policy Committee member Ben Broadbent said in a BBC radio interview that disinflationary trends in the U.K. economy “will remain in place for a while.” Investors now are betting the central bank will holdrates until at least October next year. U.K. government bonds rose as the nation sold 3 billion pounds ($4.72 billion) of 10-year gilts.
“There are some signs of economic deceleration and external challenges, particularly from the euro zone, which may add downward pressure to the pound in the near term,” said Jeremy Stretch, head of foreign-exchange strategy at Canadian Imperial Bank of Commerce in London.
The pound dropped 0.3 percent to $1.5724 at 4:53 p.m. London time after falling to $1.5723, the least since Sept. 11, 2013. It depreciated 0.6 percent to 79.32 pence after reaching 79.36 pence, the weakest since Oct. 21.
Sterling’s decline trimmed gains in the past 12 months to 5.3 percent, still the best performer after the dollar, which rose 7.8 percent in the period, according to Bloomberg Correlation-Weighted Indexes that track 10 developed-nation currencies. The euro slid 1.1 percent.
CIBC’s Stretch said he is “still upbeat about the economy overall and we see a setback in sterling as an opportunity to buy.”
To make sure that we you are completely aware about the market future moves while we are looking at the Meta Trader 4, we have to keep a sharp eye on the following:
Market Strength – measures the current volatility of the market depending of the average market volatility.
Daily Market Trend – monitors the power of market trend on daily basis.
Market Direction – summarizes the market trend based on the values of four indicators in 3 different time frames, short term (M1-M15), medium term (M30-H4) and long term (D1-W1).
OverallStrength – For a given bar, OverallStrength indicates the strength of the overall signal given by SmartTemplate. It takes into account the 4 indicators composing SmartTemplate as follow:
For each Long: +1
For each Short: -1
For each Neutral: 0
For example: If ATCI gives Long signal, MACD gives Long signal, ATLDiG gives Long signal and AMA gives Short signal, OverallStrength indicator gives value “2” (1 + 1 +1 – 1 = 2)
• ATCI – Moving average based indicator with custom weighting method
• ATLDIG – Adaptive trend line for following the trend and market cycles
• MACD -Moving average based indicator
• AMA – Moving average based indicator
Legend at the bottom
This shows the list of indicators displayed on the chart and the corresponding colours:
Colours can be interpreted as follow:
• ATCI – Green = Uptrend, Red = Downtrend, Grey = Neutral
• ATLDiG – Light blue = Uptrend, Orange = Downtrend
And more you can find in ActivTrades Smart Template.
Do not miss it, Good Luck.
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