Gold: a review of the market situation

Gold prices today rose markedly, reaching with 12-week high, as the sharp fall in the stock markets and commodity markets prompted investors to buy the metal as a safe haven. Also affected the course of trading weakening of the US currency.

"Gold retreats slightly due to the elimination of positions in commodity markets in general," - said a trader in Sydney, adding that the precious metal will meet technical resistance at $ 1,244. "Prices could rise due to instability in the stock markets, but it will not be easy. In the near future quotations may fall to $ 1,220, then return to growth."

Concern in the financial markets has intensified after the World Bank has lowered growth forecasts for 2015 and 2016, while noting that the improvement of the US economy and low fuel prices could not compensate for the disappointing results in Europe and China. In 2015, the world economy will grow by 3% compared with an earlier forecast of growth of 3.4% in June. Meanwhile, the lender raised its forecast for US economic growth this year to 3.2% from 3% in June. According to forecasts, the euro zone economy will grow by 1.1% in 2015 compared with 1.8% expected in June earlier. China's growth was 7.1% compared to 7.2% projected in October and 7.5% in June. Japan's economy will grow by 1.2% compared to 1.3%, as mentioned in June. WB also reduced the forecast of world economic growth in 2016 to 3.3% from 3.5%.

As for the dollar, it has now reached a four-week low against the yen, which was associated with the release of disappointing data on US sales. It is learned that US sales in the retail trade and restaurants fell by a seasonally adjusted 0.9% in December compared with a month earlier. It was the largest monthly decline since January 2014. Excluding sales of gasoline purchases fell 0.4%, while expenses decreased by 1% except for the volatile categories of vehicles. Economists had expected overall sales to grow by 0.2%, while sales excluding autos will rise by 0.1% in December. For the entire 2014 sales were up 4%. It was a bit weaker than the 4.1% growth in 2013 and the lowest annual growth since the recession ended in 2009. Falling gasoline prices played a role in the index for 2014. With the exception of gasoline, retail sales rose by 4.8% last year.

On the physical gold market buyers have become more cautious after the price was not retained on the highs of the previous session. Mark-ups in China, the largest consumer of gold fell to $ 3 per ounce to the global benchmark from $ 04.05 on Tuesday.

The cost of the February gold futures on the COMEX today rose to 1238.00 dollars per ounce.