The gold price is currently down as the market is focusing on the release this week of an array of economic data in the US.
Even though the price of gold has fallen today, it is still close to its record highs reached last week.
COMEX’s most active December gold contract is down 0.3% at $2.660 per ounce.
The contract reached a new lifetime high on Friday of $2,696.90 an ounce, due to the rising demand for safe haven assets.
James Hyerczyk is an analyst at FXEmpire.com. He said:
Although gold prices have weakened slightly over the past few sessions, they still remain bullish for the near term. This is especially true if the upcoming U.S. Labor data confirms the expectation of further rate cuts.
Focus on gold market indicators
The US is set to release a number of economic data this week, which will likely influence the gold price.
In the coming week, the US will release the manufacturing purchasing managers index, the unemployment rate, the non-farm payroll and the change in the number employed people in September.
Several officials of the US Federal Reserve will also be speaking at conferences this week.
All of these factors are likely to influence the gold market.
Analysts think that gold prices will continue to rise north if economic data in the US shows a further slowdown of inflation.
Carsten Fritsch is a commodity analyst with Commerzbank AG.
Investors could be buying gold to prepare for a price rise.
Gold Price Outlook
Hyerczyk thinks that the gold price on COMEX may reach a record high of $2,700 per ounce if economic data support a Fed that is dovish.
Analysts say the market is expecting the US Fed to cut interest rates by 75 basis points by the end the year.
A couple of weeks back, the US Fed cut rates by 50 basis points for the first times in four-and-a-half years.
The Fed’s announcement signaled an easing of monetary policy. The yellow metal, which is non-yielding, benefits from lower interest rate.
Hyerczyk stated that gold prices may fall below $2600 per ounce, if pressure is maintained below the $2616.50-per ounce level.
Gold prices rise due to geopolitical tensions
Israel has launched airstrikes on Houthi militias and Hezbollah in Lebanon over the weekend. This further escalates tensions across the region.
Gold is a good safe-haven investment during turbulent times.
Hyerczyk said:
Gold prices can be volatile if traders are not aware of key economic reports or geopolitical events.
This article Gold prices fall, but remain near records highs as the market watches key US economic data could be updated as new information is released.
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