Gold in for wild ride this week
Published on 17.10.2016 21:05

The gold price has edged higher in today’s trading on the back of US dollar weakness, while awaiting a raft of important economic data this week from around the globe.

At 6.52pm (GMT) gold was trading at $1,255 up from $1,250 in yesterday’s trading.

Apart from speeches from the European Central Bank and the Bank of Canada, Investors will focus on the third and final US presidential debate which has caused volatility in gold over the past few months.

A number of Federal Reserve board members are also due to deliver speeches which may shed some light on an expected interest rate hike before the end of the year.

“A number of Fed speakers are presenting their view in the market, basically adding further noise in the market, which will keep the traders on their toes when it comes to gold,” said Naeem Aslam, chief market analyst at Think Markets.

After the recent slump in the gold price, some such as Commerzbank analyst Daniel Briesemann believe that a bottom is near and gold will climb back up to $1,350 before the end of the year,

"Long contracts have been reduced by more than 100,000 contracts over the past two weeks, so we believe many of the shaky hands have already left the market," Mr Briesemann said, 

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Andrew Masters


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