Gold Price Pressured by Notions of Fed, ECB Tightening

Gold Price Pressured by Notions of Fed, ECB Tightening

Gold Price Pressured by Notions of Fed, ECB Tightening

$GLD, $SLV

Gold fell Friday after a European Central Bank official called for scaling back the bank’s stimulus program, although losses were capped when weaker than expected US economic data raised some questions about further rate hikes.

ECB board member Sabine Lautenschlaeger made the most explicit call so far from an ECB policymaker for paring the bank’s 2.3-T Euros money-printing program. Data showing that Eurozone wages grew at their fastest rate in 2 years in Q-2 bolstered the case for reining in ECB stimulus.

Spot Gold was down 0.4% at 1,324.58 oz by 1350 GMT, down 1.5% on the week, on track for its 1st weekly decliner in 4. U.S. Gold futures for December delivery fell 0.1% to 1,328.30.

Gold pared losses after data Friday showed US retail sales unexpectedly fell in August and industrial output dropped for the 1st time since January due to the impact of Hurricane Harvey.

Friday’s numbers were in contrast to strong US inflation data Thursday which increased prospects of an interest rate hike in December. The FOMC’s next monetary policy meeting begins on 19 September

Gold shrugged off the firing of another missile by NKorea on Friday that flew over Japan’s northern island of Hokkaido.

September Silver gained 0.15 to 17.93/oz

Spot Silver fell 0.6% to 17.64 oz its 1st weekly decliner in 4.

Platinum fell 0.8% to 970.80 oz down 3% on the week

Palladium shed 0.5% to 918, after marking a 4-week low Thursday.

HeffX-LTN Analysis for GLD: Overall Short Intermediate Long
Bullish (0.40) Bullish (0.34) Bullish (0.37) Very Bullish (0.50)
HeffX-LTN Analysis for SLV: Overall Short Intermediate Long
Bullish (0.38) Bullish (0.44) Bullish (0.34) Bullish (0.35)

Have a terrific weekend.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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