Gold Suggests A Consolidation Period

United States President, Barack Obama announcing that the United States and Arab allies had participated in air strikes in Syria led to a short term spike in gold. Still, the commodity failed to rise higher than $20 and traded narrowly for the remainder of the week.

Despite the United Kingdom voting to join the international coalition against the Islamic State and the completely unexpected emergency of political unrest in Hong Kong, gold barely moved in valuation. This is unusual considering investors usually seek safe-havens in times of political uncertainty and goes further towards showing the lack of buyers in the Gold market at present.

The upcoming week is heavy with United States economic releases, including the latest US Consumer Confidence, ADP Employment Change, ISM Manufacturing and US Non-Farm Payroll. As long as economic indicators continue to suggest that the United States economy is improving, a gradual decline in Gold should resume.

Investors are fully aware that the US economy is improving, with the Federal Reserve are set to conclude QE in just a few weeks. This is seen by many as a major step towards moving closer to normalizing monetary policy and as long as US economic data remains consistent, Gold looks set to continue gradually declining towards the December 2013 low, 1182.46 in the coming weeks.

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