• Gold: an overview of the market situation

Market news

4 June 2014

Gold: an overview of the market situation

Gold prices have not changed today , remained near four-month low , which was associated with the release of U.S. employment data , and caution investors ahead of a meeting of the European Central Bank.

Data presented branch organization ADP Research Institute, showed that the number of jobs in the private sector in the U.S. has increased in May by 179 thousand , while the market was expecting an average increase of 217 thousand

" ADP data were slightly worse than expected , - said the director of investments Greenwood Capital Associates Walter Todd . - But investors are in no hurry to respond and await the decision of the ECB and the official data of Ministry of Labor . "

Also the Labor Department reported that U.S. productivity in the first quarter of 2014 decreased by 3.2 % and labor costs - increased by 5.7%. Analysts on average expected a decrease of 2.2% and an increase of 5.3% , respectively.

In addition, it was reported that the country's trade deficit unexpectedly jumped in May to a maximum of two years , reaching $ 47.2 billion against $ 40.8 billion expectations

The dynamics also affect expectations exit Friday employment report in the U.S., which , according to analysts , will show slowing job growth and rising unemployment in May.

"I think prices will stabilize for a short time in the neighborhood of $ 1245 to a new jump in either direction . Investors await jobs report before opening large positions . If the figures are good , interest in gold fall , because other economic data are also good , and the stock markets are close to record highs , "- said a trader in Hong Kong.

Stocks of the world's largest gold exchange-traded fund secured SPDR Gold Trust on Tuesday increased by 1.8 tons to 787.08 tons , but still close to five-year low , pointing to a weak investment demand .

Demand for physical markets in Asia also dropped because buyers are hoping for further price reductions .

The cost of the June gold futures on the COMEX today dropped to $ 1244.2 per ounce.

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