Gold Prices Trade Near Steady Amid Calmer Market Place…

Comex gold futures prices are not straying too far from the unchanged mark in quieter dealings Wednesday. The gold market bears remain in near-term technical control. Comex August gold last traded up $0.50 at $1,377.50 an ounce. Spot gold was last quoted down $0.50 at $1,378.25. July Comex silver last traded up $0.089 at $21.735 an ounce.

European and Asian stock and financial markets were calmer Wednesday, following Tuesday’s keen “risk-off” trader mentality. Industrial production in the Euro zone rose by 0.4% in April from March, for the third straight monthly rise. This report supported ideas the Euro zone collective economy is on the mend, albeit slowly. Japan’s Nikkei stock index was down again Wednesday and is now off around 16% from its high scored last month. The markets in China were closed for a public holiday Wednesday.

A recent theme in the market place worldwide has been falling bond market prices (rising yields). A German bond auction Wednesday produced the highest yield since February. U.S. Treasury yields are also at multi-month highs. Another theme that has just developed recently is weakening periphery, or emerging market currencies. The Indian rupee, Thailand baht and Malaysian ringgit are all under serious selling pressure this week. The aforementioned developments could become bullish factors for the gold market in the coming days and weeks.

The U.S. dollar index is firmer Wednesday morning on some short covering. The greenback bears still have some downside near-term technical momentum. Nymex crude oil prices are near steady early Wednesday. Trading in oil remains choppy as the bulls and bears struggle for near-term control.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the weekly DOE energy stocks report, the monthly Treasury budget statement, and the World Bank’s global economic prospects report.

The London A.M. gold fixing is $1,377.25 versus the previous P.M. fixing of $1,374.25.

Technically, August gold futures bears have the overall near-term technical advantage and have gained some downside momentum this week. Prices are in an eight-month-old downtrend on the daily bar chart. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,423.30. Bears’ next near-term downside breakout price objective is closing prices below solid technical support at the May low of $1,338.00. First resistance is seen at this week’s high of $1,387.70 and then at $1,400.00. First support is seen at this week’s low of $1,364.50 and then at $1,355.00.

July silver bears have the overall near-term technical advantage. Prices are in an overall eight-month-old downtrend on the daily bar chart. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $22.915 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at the May low of $20.25. First resistance is seen at $22.00 and then at $22.50. Next support is seen at this week’s low of $21.33 and then at $21.00.

Contact Us:
Asad Rasheed
Direct:04-3841906
Email:asad@cfb.ae
Email:info@cfb.ae

For more information please visit our website century financial brokers.

Here are some useful links that you can follow:

Here is a CFB blog that gives useful daily Gold Analysis on dailybasis.
You can also follow CFB on facebook (useful advice on posts regularly)

Here is another blog that provides regular news and information and is very useful for Forex Signals.

News Source: www.wsj.com

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Is the Fed Prepping Markets for the End of QE?

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If an article in Monday’s Wall Street Journal is anything to go by, the U.S. Federal Reserve is getting ready to unwind its massive monetary stimulus program. And that prospect is unlikely to be as alarming for financial markets as feared, analysts tell CNBC.

Fed officials have mapped out a strategy to wind down its $85 billion-a-month bond-buying program in careful steps, although the timing of when that will start is still being debated, noted Fed watcher Jon Hilsenrath wrote in the WSJ.

Any unwinding of the Fed’s quantitative easing (QE) program, which has fueled a rally in equity markets and other risk assets, is generally viewed as negative and any indication of this happening has been highly anticipated in the U.S. since late last week.

“Having spent two New York sessions pricing in a sharp change in Fed stance, it is not obvious that the article was worth the wait,” analysts at Westpac said in a note. “The timing of the unwinding of QE remains data-dependent, not a serious prospect until perhaps late U.S. summer at the earliest.”
Analysts say that in essence, the Fed appears to be managing market expectations that its quantitative easing program will not last forever.

The Fed has said that it would maintain its key interest rate between zero and 0.25 percent until the unemployment rate fell to 6.5 percent. It has also committed to monthly purchases of bonds until labor market conditions improve substantially.

Sooner Rather Than Later?

And it is the recent signs of improvement in the jobs market that has renewed talk about a possible end to the quantitative easing. The latest non-farm payrolls report showed the U.S. economy created 165,000 new jobs last month, much more than expected, helping push the unemployment rate down to 7.5 percent. Data last week meanwhile showed jobless claims at their lowest level in almost 5-1/2 years.

“The timing is still a bit uncertain, but our view is that there will be no more QE from the United States after December this year,” said Geoff Lewis, global market strategist, J.P. Morgan Asset Management.
“They’re [Fed officials] not going to raise interest rates they’ve told us that until unemployment comes down to 6.5 percent, but that could be as soon perhaps as the first half of next year,” he added.
Lewis said that the Fed would have no choice but to taper off QE in the face of stronger economic news and that was unlikely to lead to alarm in equity markets that have thrived on the aggressive monetary stimulus.

U.S. stocks hit fresh highs on Friday, while markets in Asia and Europe have also seen stellar gains this year. “That [an easing of QE] would be good for U.S. stocks because it would mean the U.S. economy is doing a lot better,” he said.

Martin Lakos, division director, Macquarie Private Wealth told CNBC Asia’s “Squawk Box” that he also remained positive on the outlook for stocks.”The central bank is clearly trying to massage markets that QE is not going to be around there forever. I don’t think that is a big risk as they [the Fed] are managing expectations,” he said. “We remain positive on equities over the next couple of years.”

Contact Us:
Asad Rasheed
Direct:04-3841906
Email:asad@cfb.ae
Email:info@cfb.ae

For more information please visit our website century financial brokers.

Here are some useful links that you can follow:

Here is a CFB blog that gives useful daily Gold Analysis on dailybasis.
You can also follow CFB on facebook (useful advice on posts regularly)

Here is another blog that provides regular news and information and is very useful for Forex Signals.

News Source: http://www.cnbc.com

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Century Financial Brokers…

Century Financial Brokers L.L.C. was established in the year 1989 in Dubai, UAE by the dynamic Mr. Sulaiman Baqer Mohebi. Hisin-depth knowledge of the investment trends in the Middle East markets and his vision to provide the clientele with global investment opportunities along with a keen focus on customer-oriented business approach was the sole purpose of this establishment. His stringent ideals and years of expertise in the investment business has largely contributed to the success of CFB and it is one of the most sought after and reliable brokerage firms among expatriates and the local investors in UAE.

For over 24 years, CFB has upheld its values and is dedicated to providing professional quality services & solutions to both private and corporate investors.

Timeline of Achievements

1989:  CFB was initiated as Century Investment Consultants to enable residents of UAE to speculate
in the futures and commodities markets.
1990:  CFB establishes an IB relation with well known multinational conglomerates in the USA., thus becoming the first Company to establish, an introducing broker relationship with foreign companies.
1995:  CFB introduces Foreign Exchange (FOREX) as an investment instrument to investors.
1995:  CFB becomes the first Company, private or local, to operate a 24 hours Dealing Room.
1997:  CFB is registered with Dubai Economic Department.
1999:  CFB introduces internet trading in foreign exchange.
2000:  Margin trading on shares using CFDS introduced by CFB.
2005:  CFB becomes the first brokerage firm to acquire Dubai Gold & Commodities Exchange (DGCX) license.
2005:  CFB becomes a principal clearing member of DGCX.
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Century Financial Brokers LLC

For more information please visit our website:  www.cfb.ae

Here are some useful links that you can follow:

Here is a CFB blog that gives useful daily trade advice…http://centuryfinancialsbrokers.blogspot.ae/

You can also follow CFB on facebook (useful advice on posts regularly)

Here is another blog that provides regular news and information and is very useful for Forex Signals.
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