Gold Prices Declines as Trump Addresses Congress on Policy Plans

On Wednesday, gold plunged in Asia as Donald Trump presented a strong law-and-order speech to the U.S. Congress that included a restriction on illegal immigration and restated call for wall on the border with Mexico, while calling for a massive repair of the nation’s tax system and increased spending on infrastructure and defense.

Advertisements

shutterstock_287368517-1

On Wednesday, gold plunged in Asia as Donald Trump presented a strong law-and-order speech to the U.S. Congress that included a restriction on illegal immigration and restated call for wall on the border with Mexico, while calling for a massive repair of the nation’s tax system and increased spending on infrastructure and defense.

The Trump list of things also included a call for lower drug prices and  undetermined new healthcare coverage plan.

Delivery of gold in May on the Comex division of the New York Mercantile Exchange fell 0.51% to $1,247.45 troy ounce.

Also on the Comex,  delivery of silver futures for May  declined 0.58% to $18.362 a troy ounce. Copper futures increased  0.29% to $2.723 a pound, 10:03PM ET.

Investors noted positive  manufacturing figures from China that established the stage for global growth hopes.

On Tuesday, gold Futures traded lower overnight, as the greenback  moved off session lows, ahead of President Trump’s speech to congress. In spite of a mixed batch of U.S. economic data, gold futures fight for direction in mid-afternoon trade, as President Trump’s address to congress on Tuesday at 9 PM EST remained front and center.

In the final three months of 2016 gross domestic product (GDP) increased at a 1.9% annual rate, the Commerce Department stated on Tuesday its second estimate for the period. Analysts expected a 2.1% yearly rate increase.

The Consumer Confidence Index, which gauges  consumers’ assessment of the latest conditions in the U.S., touched 114.8 in February, according to the statistics from The Conference Board. Economist anticipated the Consumer Confidence index to hit 111 in February.

The mixed bag of economic statistics came during renewed expectations of a March interest rate hike, after Dallas Fed President Robert Kaplan on Monday restated his outlook that a rate hike should happen sooner rather than later.

Fed fund futures priced in approximately a 40% probability of a rate hike in March, according to the reports.

Gold is sensitive to changes in U.S. interest rates, which lift the opportunity cost of holding non-yielding assets like bullion, while increasing the dollar in which it is priced.

Traders are encouraged to be updated with the latest market news at Trade12.com.Check out Trade12 reviews to know more about the trending economic events. Open an account now and learn more!

 

Financial trouble?  Let Exo Capital Markets manage your funds accordingly.  Exo Capital Markets strives to become the leading financial services firm by offering its clients with the most modern solutions in the industry.

Gold Prices Decline in Asia, but Copper Firm as Supplies Eyed

On Tuesday, gold prices plunged in Asia, but copper held gains as investors watch the potential for a lengthy supply interruption from two of the world’s major mines.

shutterstock_287368517-1

On Tuesday, gold prices plunged in Asia, but copper held gains as investors watch the potential for a lengthy supply interruption from two of the world’s major mines.

Delivery of gold for April on the Comex division of the NYMEX declined 0.32% to $1,2385.15 a troy ounce.  Delivery  of a silver future  in March  eased 0.11% to $18.010 a troy ounce.

Copper futures surge  0.22% to $2.756 a pound as worries over supply interruptions in Chile and Indonesia, supported prices as labor strikes at BHP Billiton (LON:LON: BLT)’s Chilean Escondida and Freeport-McMoran (NYSE:FCX)’s Indonesian Grasberg mines continues. Shared, the mines produce approximately 10% of the world’s total copper supply, 10:09PM ET.

Suddenly, gold prices slightly changed during North American morning hours on Monday, with investors undecided to take strong positions because of the U.S. national holiday for Presidents Day.

Headlines from Washington will most likely to stay in focus in the week onwards, as traders await further details on President Donald Trump’s promises of tax reform, deregulation and infrastructure spending.

Market participants also anticipated additional clues on the scheduling  of the next U.S. rate hike. In the week onward, global financial markets will concentrate on minutes of the Fed Reserve’s current policy meeting along with housing-related data for more indications on the timing of the next U.S. rate hike.

This week, there are also more than a few Fed speakers, including Minneapolis Fed President Neel Kashkari, Philadelphia Fed President Patrick Harker and Atlanta Fed President Dennis Lockhart.

On Monday, Cleveland Fed l Reserve President Loretta Mester stated in a speech in Singapore she would be “comfortable” raising interest rates at this point if the economy maintained its current pace of performance.

Last week, Fed Chair Janet Yellen stated that the U.S. central bank will possibly need to raise interest rates at the forthcoming meeting, although she flagged considerable improbability over economic policy under the Donald Trump administration.

“Fed fund futures priced in a less than 15% chance of a rate hike in March. The odds of a June increase were seen at around 70%,”  according to the reports.

Traders are encouraged to be updated with the latest market news at Trade12.com.Check out Trade12 reviews to know more about the trending economic events. Open an account now and learn more!

 

Financial trouble?  Let Exo Capital Markets manage your funds accordingly.  Exo Capital Markets strives to become the leading financial services firm by offering its clients with the most modern solutions in the industry.

Gold Dips in Asia, but Copper Increases on Mine Labor Issues

On Friday, copper gained on labor matters at two major mines and gold fell in Asia on a rising expectation that the Fed will hike rates the approaching month.

shutterstock_287368517-1

On Friday, copper gained on labor matters at two major mines and gold fell in Asia on a rising expectation that the Fed will hike rates the approaching month.

As the U.S. greenback slightly recovered from losses posted in the prior session, gold prices glided lower on Friday,  although continuing geopolitical worries were expected to continue to support safe-haven demand.

EUR/USD slightly changed at 1.0669, just off Thursday’s one-week high of 1.0682,  02:24AM ET.

Delivery of gold for April on the Comex division of the New York Mercantile Exchange dropped 0.17% to $1,239.55 a troy ounce, while delivery of  silver futures for March plunged 0.12% to $18.053 a troy ounce, 10:54PM ET.

Copper futures increased 0.33% to $2.270 a pound as all work has stopped at Freeport-McMoRan’s giant copper mine in Indonesia and its employees plan a demonstration against the government’s move the previous month that halted exports of copper focus to increase domestic industries.

Traders are also looking to renewed talks between striking employees and management at Chile’s Escondida copper mine.The mine, which is owned by BHP Billiton (LON:LON:BLT), manufactured over 1 million tonnes of copper, approximately  5% of the world’s total in 2016.

On Thursday, gold prices added to overnight gains, hitting a one week peak in spite of a brighter view for interest rate hikes on a raft of mostly upbeat U.S. economic data.

The number of crowds  who filed for redundancy assistance in the U.S. the previous week increase by a less than expected 5,000 to 239,000 last week, holding close to the deepest level since 1973. A separate report presented that the Philadelphia Fed index surged to a reading of 43.3 from 23.6 in January. Which has been the highest level since early 1984.

Statistics also indicated that building permits increased by 4.6% to 1.285 million units last month from 1.210 million in December.

However, U.S. housing starts declining by2.6% to 1.246 million units last month from December’s total of 1.279 million units.

Hawkish remarks by Fed Chair Janet Yellen combined with better than expected U.S. economic statistics  this week increased predictions of a March interest rate hike from the Fed.

Fed fund futures priced in about  27% probability of a rate hike in March,  up from less than 10% at the beginning  of the week.  The odds of a June surge were seen at around 74%, according to the reports.

The precious metal is sensitive to adjust in U.S. rates, which lift the chances cost of holding non-yielding assets like bullion, while increasing the greenback in which it is priced.

Traders are encouraged to be updated with the latest market news at Trade12.com.Check out Trade12 reviews to know more about the trending economic events. Open an account now and learn more!

 

Financial trouble?  Let Exo Capital Markets manage your funds accordingly.  Exo Capital Markets strives to become the leading financial services firm by offering its clients with the most modern solutions in the industry.

Gold Slightly Gains in Asia, Reserve Bank of Australia Makes a Bold Call

On Tuesday, gold prices edged up with threat sentiment dominating, although Australia’s central bank sent a strong indication, it sees an end to the global monetary easing for now.

shutterstock_287368517-1

On Tuesday, gold prices edged up with threat sentiment dominating, although Australia’s central bank sent a strong indication, it sees an end to the global monetary easing for now.

Delivery of gold for April on the Comex division of the New York Mercantile Exchange increased 0.17% to $1,234.25 a troy ounce.

Similarly, on the Comex, delivery of silver futures for March edged up 0.02% to $17.697 a troy ounce, while copper fell 0.38% to $2.641 a pound.

“There is no longer an expectation of further monetary easing in other major economies,” the RBA statement on Tuesday announcing rates on hold at a record low 1.5% said. “The board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.”

On Monday,  gold prices added to overnight increases in North American morning trade, hitting the strongest level since November as investors sought the supposed safety of the yellow metal during growing concerns over political dangers around the globe.

Prices of the yellow metal increased 2.4% the previous week, its best weekly gain in seven months.
With President Donald Trump’s administration on the back foot over its immigration and other policies, investors continued to pile in to gold as they watched political risk elements.

In the euro zone, traders are observing developments in countries where anti-establishment activities are gaining power ahead of elections.

“French far-right presidential candidate Marine Le Pen revealed a manifesto pledge to take her country out of the euro over the weekend, underscoring political risk in the world’s biggest single market,” according to the report.

Investors frequently purchase  gold as a refuge against economic and political improbability.

Temporarily, market participants think about how the recent U.S. jobs report will impact  the pace of Fed Reserve interest rate hikes this year.

In January, the U.S., employers added 227,000 workers, the biggest gain in a month since September. However, unemployment inched  up to 4.8% as additional people search for work, and the pace of wage growth reduced.

The sluggish wage development was seen as weakening the case for short term interest rate hikes. Gold is sensitive to moves in U.S. rates, which boost the opportunity cost of holding non-yielding assets such as bullion. A gradual route to higher rates is perceived as less of a risk to gold prices than a swift series of increases.

Traders are encouraged to be updated with the latest market news at Trade12.com.Check out Trade12 reviews to know more about the trending economic events. Open an account now and learn more!

 

Financial trouble?  Let Exo Capital Markets manage your funds accordingly.  Exo Capital Markets strives to become the leading financial services firm by offering its clients with the most modern solutions in the industry.

Gold Futures Increases in Asia with Copper Eyed on Chile Strike Talk

On Wednesday, gold prices increase in Asia with investors marking political risk and also observing copper on forecasts of strikes by workers in Chile at the world’s biggest miner.

shutterstock_287368517-1

On Wednesday, gold prices increase in Asia with investors marking political risk and also observing copper on forecasts of strikes by workers in Chile at the world’s biggest miner.

Delivery of gold futures for April on the Comex division of the NYMEX edged up 0.03% to $1,211.75 a troy ounce. Also on the Comex, delivery of  silver futures for March fell 0.15% to $17.517 a troy ounce and copper futures dropped 0.04% to $2.725 even with markets in China, the world’s top importer of the industrial metal, closed through Thursday to mark the Lunar New Year.

While the greenback  staged a slight recovery in Asia on Wednesday with China manufacturing noted, however, attention turning the Fed Reserve statement following the current monetary policy review, though Fed Chair Janet Yellen is not set to hold a press conference.

Copper increased suddenly as union workers at Chile’s Minera Escondida, the largest copper mine in the world, are preparing to vote today on approving a strike as early as Friday after negotiations for a collective agreement seem to have fallen apart, according to reports. Escondida is majority possessed by BHP Billiton, with Rio Tinto holding a minority stake.

China’s official manufacturing Purchasing Managers’ Index (PMI) continued in expansion in January, as the mainland economy presented indication of stabilizing, reaching 51.3, slightly down  from 51.4 in December, but still better than a Reuters poll predicting 51.2. A reading above 50 indicates expansion, while a reading below signals contraction.

Overnight, on Tuesday,  the greenback  held weaker  with remarks on trade from the Trump administration weighing on sentiment and investors looking forward to the current Fed views on rates on Wednesday.

On Tuesday, gold made strong gains on political risk as U.S. trade policies came into focus again and investors were cautious ahead of the latest Fed views on rates scheduled this week.

On Tuesday, in North America, gold prices were sharply higher in the morning trade, extending overnight increased as the greenback  dropped during uncertainty over President Donald Trump’s policies, as the president terminated acting U.S. Attorney General Sally Yates late Monday after she ordered Justice Department lawyers not to implement the travel restrictions.

In the meantime, after Peter Navarro, Trump’s top trade adviser, indicted Germany of currency exploitation, the greenback dropped back toward an eight-week low against a basket of major currencies  The U.S. dollar index dropped 0.82% to 99.60. It recovered slightly in Asian trade.

Traders were now looking forward to the Fed Reserve’s two-day meeting on monetary policy starting on Tuesday for additional clues on the timing of the next U.S. interest rate hike. In January,  CB consumer confidence declines more than anticipated to 111.8, lower than the expected 113.0.

The Fed Reserve indicated the previous month that at least three rate increases were in the near future for 2017. However, traders remained skeptical. Instead, markets are betting  in just two rate hikes during the course of this year, according to the reports.

Traders are encouraged to be updated with the latest market news at Trade12.com.Check out Trade12 reviews to know more about the trending economic events. Open an account now and learn more!

 

Financial trouble? Let Exo Capital Markets manage your funds accordingly. Exo Capital Markets strives to become the leading financial services firm by offering its clients with the most modern solutions in the industry.

Gold Prices Increase to Two Month Peak as Greenback Falls on Trump Uncertainty

On Monday, gold prices increase suddenly during European early trade, hitting the strongest level in about two months as the U.S. greenback plunged during improbability around the economic policies of new U.S. President Donald Trump.

shutterstock_287368517 (1).jpg

On Monday, gold prices increase suddenly during European early trade, hitting the strongest level in about two months as the U.S. greenback plunged during improbability around the economic policies of new U.S. President Donald Trump.

Delivery of gold for February on the Comex division of the NYMEX affected a session peak of $1,219.40 a troy ounce, a level not perceived since November 22.

It was previously at $1,214.50 by 3:10AM ET (08:10GMT), increased nearly $10.00, or 0.8%.

The dollar sold off after President Trump struck a protectionist statement in his inauguration speech on Friday, disappointing investors who expected to hear additional information on his promises of tax reductions and other stimulus. After  this protectionist statement, the greenback  prolonged losses on Monday.

During his inauguration address Friday, Trump promised to put “America first.” He indicated that he would abandon the Trans-Pacific Partnership and renegotiate NAFTA.

The dollar index declined 0.54% at 100.23. It was off 1.12% at 113.35  yen at 02:30 ET.

Sterling traded beyond $1.24. U.K. Prime Minister  Theresa May is due to meet Trump Friday in Washington.

The  euro  firmed to a six-week peak of over $1.07.

Later on Monday, European Central Bank President  Mario Draghi is due to speak .

Investors will return to the business of observing economic data for fresh indications on the health of the economy in the week onward,  with Friday’s advanced reading for U.S. development in the limelight.

Last month, the Fed Reserve signaled  that at least three rate increases were in the near future  for 2017. According to a prediction of interest rates from members of the central bank, identified as the dot-plot.

However, traders stayed  skeptical. Instead, markets are expecting  just two rate hikes during the course of this year, according to the reports.

Any delay in raising interest rates would be perceived as positive for gold and negative for the greenback.

Also on the Comex, delivery of silver futures for March add on on 11.0 cents, or approximately 0.7%, at $17.14 a troy ounce during early hours in London.

In the meantime, platinum increased 1% to $985.75, while  palladium added 0.4% to $791.40 an ounce, the strongest level since May 2015.

In another place in metals trading, copper futures increased 2.0 cents, or approximately 0.8%, to $2.645 a pound.

Traders are encouraged to be updated with the latest market news at Trade12.com.Check out Trade12 reviews to know more about the trending economic events. Open an account now and learn more!

 

Financial trouble?  Let Exo Capital Markets manage your funds accordingly.  Exo Capital Markets strives to become the leading financial services firm by offering its clients with the most modern solutions in the industry.