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Domestic gold weighed down by stronger yen, says Mr. Chen of Sanward Securities
CommodityDigital Finance
Mr. Chen of Sanward Securities expressed the view that domestic gold is being weighed down by the stronger yen. Last week, New York gold for December fell amid Middle East tensions and the FOMC meeting, but recovered to a weekly close of 4,107.00 dollars. On Monday the 3rd, New York gold extended its decline, falling 16.50 dollars from the previous week to 4,090.50 dollars per ounce. Crude oil prices dropped after US President Trump announced he was calling off an attack on Iran, which prompted a rebound in gold. This week, ahead of the US July employment report due on the 7th, markets are expected to swing on data such as the JOLTS report and the ADP national employment report. Mr. Chen noted that if nonfarm payrolls growth comes in line with market expectations, rate hike concerns will cap gold's upside. The forecast range for New York gold is 3,900 to 4,300 dollars. Meanwhile, the Japanese government and the Bank of Japan conducted yen-buying intervention on July 30th for the first time in about three months, sending the dollar-yen pair down from the upper 162-yen range to the 157-yen range. On Monday the 3rd, stop-loss selling pushed the yen higher to 155.21 at one point. The Bank of Japan's monetary policy meeting on the 31st kept settings unchanged. With New York gold hovering around 4,100 dollars, the gold ETF fell below the key 60,000-yen level on the 3rd due to the stronger yen, hitting a low of 57,708 yen. The forecast range is 57,000 to 61,000 yen.