Gold Prices May Rise as There Are Some Uncertanties and Slowdown
Gold Prices May Rise as There Are Some Uncertanties and Slowdowns
Global FDI are falling and some economic uncertainty including U.S. trade negotiations with China, Europe, Canada and other trading partners, and Brexit could affect the Global Econmy. US' Business Activtity and US' Foreign growth are also slowing downt the investors may invest in safe-haven assets like gold and could push the gold prices higher.
Global foreign direct investment flows plunged by another 27% in 2018 — after having already plunged 16% in 2017 — to just $1.1 trillion, the equivalent of 1.3% of global GDP, the lowest ratio since 1999, according to new data released by the OECD.
April data signalled a slower increase in business activity across the U.S. service sector. Output rose at the softest pace since March 2017 as new business growth also eased to a two-year low. Despite a further increase in backlogs of work, firms reined in their hiring, with the rate of job creation slowing to a two-year low.
The Composite PMI Output Index registered 53.0 in April, down from 54.6 in March and the lowest since March 2017. Although the output expansion quickened across the manufacturing sector, production growth remained relatively subdued.
US' foreign growth in 2018 slowed from a stronger pace in 2017. And recent forecasts are for a further slowdown this year. There also is a concern that events such as a disorderly Brexit could have important spillovers to U.S. financial markets. U.S. trade negotiations with China and other trading partners add another layer of uncertainty.
Technical Analysis
The Prices bounced off the 0.5 level of fibonacci retracement last friday following the release of the NFP and PMI. If the 2/1 line still holds the price could go higher to the 0.764 level at 1307 or 1 level at 1348.
Global FDI are falling and some economic uncertainty including U.S. trade negotiations with China, Europe, Canada and other trading partners, and Brexit could affect the Global Econmy. US' Business Activtity and US' Foreign growth are also slowing downt the investors may invest in safe-haven assets like gold and could push the gold prices higher.
Global foreign direct investment flows plunged by another 27% in 2018 — after having already plunged 16% in 2017 — to just $1.1 trillion, the equivalent of 1.3% of global GDP, the lowest ratio since 1999, according to new data released by the OECD.
April data signalled a slower increase in business activity across the U.S. service sector. Output rose at the softest pace since March 2017 as new business growth also eased to a two-year low. Despite a further increase in backlogs of work, firms reined in their hiring, with the rate of job creation slowing to a two-year low.
The Composite PMI Output Index registered 53.0 in April, down from 54.6 in March and the lowest since March 2017. Although the output expansion quickened across the manufacturing sector, production growth remained relatively subdued.
US' foreign growth in 2018 slowed from a stronger pace in 2017. And recent forecasts are for a further slowdown this year. There also is a concern that events such as a disorderly Brexit could have important spillovers to U.S. financial markets. U.S. trade negotiations with China and other trading partners add another layer of uncertainty.
Technical Analysis
The Prices bounced off the 0.5 level of fibonacci retracement last friday following the release of the NFP and PMI. If the 2/1 line still holds the price could go higher to the 0.764 level at 1307 or 1 level at 1348.
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