Phil Carr
The Gold & Silver Club
Summary
This week Gold prices hit a fresh weekly high of $1274 an ounce from the previous week’s close of $1242 an ounce before retreating back down to the key support level of $1250. This week Gold has been supported by an outflow of capital from Equities and Emerging Markets amid global economic concerns. This week's mix of U.S data has added to the trend. As the Federal Reserve continue to taper – a wave of currency declines are hurting a number of Emerging Market economies, ranging from Brazil, Russia, India and South Africa. This is prompting local investors to move their capital away from depreciating currencies and into safe-havens like gold. January Non-Farm Payroll cam in weaker-than-expected. US non-farm payrolls rose by 113K last month, missing estimates of a 180,000 rise, based on the report released by the Bureau of Labour Statistics. In the previous month, the number of new employees rose by the surprisingly low figure of 74K. The unemployment rate dropped to 6.6% in January, down from 6.7% in the previous month.Latest Live Videos
Editors’ Picks
EUR/USD: Yes, the US economy is resilient – No, that won’t save the US Dollar Premium
Some impressive US data should have resulted in a much stronger USD. Well, it didn’t happen. The EUR/USD pair closed a third consecutive week little changed, a handful of pips above the 1.1800 mark.
Gold: Metals remain vulnerable to broad market mood Premium
Gold (XAU/USD) started the week on a bullish note and climbed above $5,000 before declining sharply and erasing its weekly gains on Thursday, only to recover heading into the weekend.
GBP/USD: Pound Sterling remains below 1.3700 ahead of UK inflation test Premium
The Pound Sterling (GBP) failed to resist at higher levels against the US Dollar (USD), but buyers held their ground amid a US data-busy blockbuster week.
Bitcoin: BTC bears aren’t done yet
Bitcoin (BTC) price slips below $67,000 at the time of writing on Friday, remaining under pressure and extending losses of nearly 5% so far this week.
US Dollar: Big in Japan Premium
The US Dollar (USD) resumed its yearly downtrend this week, slipping back to two-week troughs just to bounce back a tad in the second half of the week.
Week ahead: Data blitz, Fed Minutes and RBNZ decision in the spotlight
US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.