Weekly Outlook – Gold to break key resistance?

▸Despite the recent rating downgrade of China by Moody’s, the Chinese sector expanded at the fastest pace in four months. The Caixin PMI cane out at 52.8 vs. 51.5 in May. This week, Chinese inflation will be important for the Asian region as it could affect PBOC policy.

▸The US Dollar fell on back of weak employment data on Friday, where weak NFP (138k vs. 185k exp.) triggered speculation of a less hawkish Fed on their June meeting. We expect with the market the Fed to raise rates 25bp to 1-1.25% at the June meeting, but the focus will be on the forward guidance.

▸With the less hawkish Fed expectations, US equities continued on the bid with the S&P500 making new all-time highs close to 2,440. Gold gained for the fourth straight weekly and currently testing key trend resistance…

READ THE FULL OVERVIEW HERE: 20170605 – weekly

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