Gold Continues to Rise as China Uplifts Market Sentiment
For five consecutive sessions,one factor that consistently affects forex trading, is gold comes in stronger every time and this was further boosted by China’s data, which lifted the general sentiment of the market today, back in London.
According to an analyst, the prices have stabilized due to the absence on new developments due to the slowdown brought about by summer. Overall, things at the market are interacting in a light and breezy manner, something that is expected during the summer season. This is highly anticipated by participants of forex trading http://www.fxcc.com.
Experts in the market are closely monitoring on the data coming from China with previous anticipation of what it is bound to release. The figures show that China’s economy is not as strong as expected within the period under study. China is known as one of the major gold consumers worldwide. It has exceeded India’s market size for the aforementioned precious metal.
There are indicators that are constantly followed by those who are into forex trading. The figures show that the CPI or Consumer Price Index of China has increased by as much as 1.8 percent compared to last year. On the other hand, China’s PPI or Producer Price Index has fallen further from -2.1 percent to -2.9 percent. All these have led to the continuously increasing gold value.
In terms of value of fixed assets, for the month of July alone, the total amount spent on capital investments like properties, roads, and factories was established at 20.4 percent, a little higher than what’s expected. However, no increase or decrease was noted in this parameter.
The production of the industries, in general, has dipped for the same period or time frame under consideration. From the previous 9.5 percent, now the value is at 9.2 percent. On the other hand, sales on retail has slightly dipped – from 13.7 percent, the current figure is only at 13.1 percent.
The release of data made today serves as an important antecedent or indicator for the press release to be made by China tomorrow. The trade balance is actually pegged to be at $35.1 billion excess which is greater by more or less $3 billion than the figure that came before it.
With the trend of prices of gold, the other precious metals followed the same pace. For example, silver gained at least $0.05 while platinum has added at least $11.10 to its previous value. Palladium, meanwhile, is noted to be the only precious metal to be left behind in the trend falling behind by at least $1.30 from its previous value.
Meanwhile, looking at the currencies that are considered to be major players in forex trading, euro retreated by at least 0.0036. The current dollar index is pegged at 82.48. Currently, a dollar would be equivalent to 1.2335 euro.
It is also quite noteworthy to mention that the bent crude oil has established a new high record yesterday.
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