"BUY GOLD 29900 TGT 30000/30300 SL 29500"
Gold : Gold rose back towards $1,260 an ounce on Thursday,
coming within a hair of a 13-month high as the dollar was on track to make its
biggest one-day tumble in a month after U.S. data fueled worries over Friday's
U.S. payrolls data. New orders for U.S. factory goods rebounded less than
expected in January, though it was the largest increase since June. U.S.
nonfarm payrolls are estimated to have risen by 190,000 last month, according
to a Reuters poll of economists. A strong reading may revive expectations that
the Federal Reserve will press ahead with more U.S. interest rate hikes this
year, which would weigh on non-yielding gold. On Thursday, Dallas Federal
Reserve President Robert Kaplan called for the U.S. central bank to be patient
when it comes to raising rates, citing the effect of tighter financial
conditions on U.S. economic growth. Holdings of the largest gold-backed
exchange-traded fund, SPDR Gold Shares, rose to the highest since September
2014.
Outlook : We expect gold prices to trade positive on the back of
dovish statements by US Federal Reserve members.
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