Yesterday the gold market recorded its largest rise since July 24th with prices reaching $1,346 per ounce, an increase of 0.8 percent. The demand was partly fuelled by a weakening USD. Other metals and oil also benefited from the weakening USD and appreciated. There is some resistance around the $1,345 level so it remains to be seen whether the last few days have heralded a new upward trend.
Later today numbers for the US initial jobless claims are going to be released and might show a slight increase to 335,000 for the second week in August compared to 333,000 in the week before. Watch also out for consumer prices. According to some of Bloomberg’s economists, consumer prices probably would have risen by 0.2 percent in July. Furthermore, the representatives of the Federal Reserve dampened expectations for economic growth and pledged for caution in the efforts to change the current policy of the central bank. In succession, the USD lost against nearly all of its most commonly traded counterparts.
Views expressed in this article are my own