Sep 7 (Lagos) - It has not been the best of trading weeks for Gold which suffered its biggest daily loss in almost three years on Thursday, shedding over $40 in valuation as risk-on repelled investors from safe haven assets and boosted appetite for riskier investments.
While the precious metal is positioned to weaken further in the near term amid the improving market sentiment, the downside will be limited by core market themes. For as long as global growth concerns, uncertainty over trade and low interest rates across the globe remain key market themes, the outlook for Gold remains bright and encouraging.
Where the precious metal concludes this week will be influenced by the US jobs data released on Friday afternoon. A solid jobs reports could hurt Gold bulls as investors re-evaluate how deep the Federal Reserve will cut interest rates beyond September.
Focusing on the technical picture, Gold is under pressure on the daily charts. Sustained weakness below $1525 should encourage a decline towards $1500 in the near term.
However the start of festival season for India's 850 million Hindu population could sharply boost the demand for physical Gold especially in October when Diwali festival arrives this year.
In Nigeria however people are mostly restricted from buying gold in open shops and shopping malls but one of the ways to invest in gold is through the NEWGOLD ETF which is listed on the exchange and tracks the price of 1/100 ounce of gold in South African Rand currency.
reporting for easykobo.com on Friday, Sep 6 2019 from Lagos, Nigeria
Source - partly sourced from FXTM Senior Research Analyst, Lukman Otunuga