Gold prices rise alert to FOMC minutes
Yesterday the gold price drew a bullish candle with a medium body and a small shadow on the top of the candle extending the previous rise. Gold price formed a high of $2669, a low of $2645, and a close of $2661. The raising in gold prices crossed the 50 MA from the downside.
One of the triggers for the raising of gold prices is thought to be related to tariff plans. President Trump is considering declaring a national economic emergency to provide legal justification for a large number of universal tariffs on allies and enemies. The International Economic Emergency Powers Act (IEEPA) would unilaterally authorize the president to manage imports during national emergencies.
The news increased demand for US dollars, and the dollar index (DXY) showed an increase from a low of 108.552 to a high of 109.376 due to the market response to demand for US dollars.
Meanwhile, US jobs data Job Openings and Labor Turnover Survey (JOLTS) showed that job vacancies unexpectedly increased to 8.098 million on the last day of November from the previous 7.839 million.
Other US data ADP Non-Farm Employment Change showed actual data of 122k lower than the expected 139k and much lower than a previous revision of 146k. Meanwhile, Unemployment Claims showed actual data of 201k lower than the expected 214k and the previous revision of 211k.
On the other hand, the rise in gold was triggered by demand from China's central bank, a commodity analyst stated that the PBoC held 73.29 million troy ounces in December, from 72.96 million in the previous month.
Gold gains stalled at a $2669 high as gold buyers seemed uncommitted ahead of the FOMC Meeting Minutes. This seems to show caution ahead of the FOMC meeting minutes could lead to a change in direction.
