DAILY ANALYSIS

First Gold Morning Review July 05, 2019

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The China Paper Gold Network shows that funds are traded on the world's largest gold exchange (ETF) until July 05, holding 798.44 tons, compared to the previous day, and a net reduction of 50.83 tons this month. The US ADP employment data released on Wednesday (July 3) was less than expected, with only a 102,000 increase, far lower than market expectations of 160,000. After a weak report was released, gold rose to the highest level in one day. The June ISM non-manufacturing PMI released on Wednesday (July 3) was 55.1, lower than the previous value of 56.9 and estimated at 55.9, the lowest since July 2017, indicating that economic growth slowed, but not down shift like a cliff type. On Wednesday (July 3), US factory orders in May were -0.7%, higher than the previous value of -0.8% but lower than expected -0.5%; comments said that new orders for US-made goods fell in the second month. Shipments have barely increased, indicating that the manufacturing sector continues to be weak. The US Commerce Department said Wednesday that factory orders fell due to weak demand for transportation equipment. Manufacturing industries dragged down by stockpiles, trade tensions and a decline in production of Boeing 737 aircraft Max. On Wednesday (July 3), the final value of the June Markit US service PMI was 51.5, higher than previous values ​​and expectations, Head of Business Economics Markit Chris Williamson said manufacturing and service PMI data implies that the US economy is growing at an annual rate. Will increase by 1.5%, growth in the service industry has increased. The US core PCE price index for May released on Friday (June 28) is 1.6%, according to the previous value and expectation value, the effect on the market is very small. US personal monthly expenditure in May was 0.4%, higher than the previous value of 0.3%, but in line with expectations. The agency's agency commented that US consumer spending increased modestly in May, and prices rose slightly indicating that economic growth slowed and mild inflation pressure. For this reason, it is possible for the Fed to cut interest rates next month. The final value of the US Consumer Confidence Index for the University of Michigan in June (June 28) was 98.2, surpassing the previous value of 97.9 and market expectations 98; The small overall decline in June was caused entirely by households with income in the top third of the distribution, which more often mentioned the negative impact of tariffs, recorded 45%, up from 30% last month, "said Consumer Survey chief economist Richard Curtin. Economies.com , a well-known financial information website, wrote a recent article on the analysis of gold trends in the day, Economies.com said that gold prices still fluctuated in a bullish channel.Now because Stochastic has begun to give a positive signal, this has created positive momentum, which can push the gold price to continue its main bullish trend. The initial target is $ 1,439.00 per ounce. If this level is exceeded, it will open the door for the price of gold to soar to $ 1500.00 an ounce. No main data released on Thursday, and The market is focused on the US non-farm payroll report, which will influence the July meeting's decision on Fe interest rates d. Economists expect an increase of 160,000 jobs in June, because they only increased by 75,000 in May. Because the Fed is expected to cut interest rates, US government bond yields have fallen to multi-year lows, while the stock market has risen to an 18-month high. US stocks have hit record highs on three major stock indices on Wednesday. According to analysis, this is why gold is difficult to rise. One of the reasons. On Thursday, US Independence Day holidays, US stocks closed, futures markets closed earlier, and overall market trading was more quiet. On that day, the US dollar index fell slightly and continued to run below the 97 figure, a surprise gold spot and consolidation, still running above the 1420 figure.