The Gold Price Down Due to incompatibilities US Economic Data

Equity World, Jakarta Gold prices fell on Tuesday (Wednesday morning Jakarta time). The decline in the gold price since the announcement of US economic data in line with expectations of analysts and market participants.

Citing Reuters, Wednesday (02/22/2017), the price of gold in the spot market fell 0.2 percent to US $ 1,235.85 per ounce. For the price of gold futures also fell 0.02 percent to a level of US $ 1238.90 per ounce.

However, if calculated from the beginning of the year, the price of gold is still capable rose 7 percent.

The decline in gold prices today fueled mismatch realization of economic data with estimates of market participants. US Purchasing Manager Index (PMI) was at 53.9 in February. The figure was down from 55.6 in January and expectations of market participants in figure 55.8.

The weakening gold prices today deepening slowdown that has been printed in earlier trading. Yesterday, gold prices depressed due to the strengthening US dollar as a result of comments from the US central bank officials.

At the end of last week the US central bank officials said that they were likely to raise interest rates in accordance with the initial target and the fastest will be signed next month.

"The Fed provides a load to the price of gold to be able to climb and the PMI data added more in the burden," said senior analyst RJO Futures, Chicago, USA, Bob Haberkorn.

In trading in recent weeks the price of gold has continued to be overshadowed by the planned increase in the interest rate the Federal Reserve. If the monetary policy authorities to raise interest then gold had to fight with the other instruments that provide interest.


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