This morning in Asian trading precious metals are giving back some of yesterday’s gains, with gold trading down $2.20 at 1586.80 and silver at 28.813. On Wednesday gold prices started the trading day on a strong
note, however the gains faded at the end of the trading session.
The gains were scaled back, as strong US retail sales number for February boosted the appetite for riskier assets. The retail sales registered an increase of 1.1%, substantially above the estimates. Effectively, US equity markets have ended higher on nine consecutive trading sessions. Gold prices once again shied away from the psychological resistance of US$1,600/ounce and in this process registered a high, just 0.5 cents below this level.
During the Asian session today, traders saw positive eco data as Australian employers boosted payrolls in February by the most in almost 13 years, sending the currency to a one-month high as traders wound back bets the central bank will keep cutting interest rates. While on its neighbors listened as New Zealand’s central bank expects to keep borrowing costs at a record low until next year and signaled it may reduce its benchmark rate if the local dollar rises more than the economy justifies. The kiwi fell.
Inventories in the U.S. rose in January by the most since May 2011 as companies replenished warehouses and shelves amid signs demand will pick up. The 1% increase in goods on hand exceeded the highest forecast in a survey and followed a 0.3 percent gain in December that was more than previously estimated. A proposal by the Federal Reserve Bank of Dallas to limit government support for banks could force JPMorgan Chase & Co. (JPM) and Bank of America Corp. to shrink their U.S. consumer and commercial-lending units by more than half. Lenders are becoming more willing to offer new loans to borrowers who don’t have any home equity after changes to the rules of the U.S. government’s Home Affordable Refinance Program.
Gold is trading with little conviction as with little to no data this week, but later today, news flow should increase as the European Finance Ministers meet in Brussels which could see the euro gain a bit of momentum against the dollar and have a positive effect on gold prices. Traders will also be closely watching a slew of US eco data including unemployment and current account numbers hoping for some guidance as to what to expect from the FOMC’s meeting next week. Gold is expected to remain in a tight range until the March 18th meeting.
Silver on the other might rise on some positive eco data, as the industrial side might be supported by stronger eco data, much like gold no moves are expected ahead of the Fed meet next week.
The gains were scaled back, as strong US retail sales number for February boosted the appetite for riskier assets. The retail sales registered an increase of 1.1%, substantially above the estimates. Effectively, US equity markets have ended higher on nine consecutive trading sessions. Gold prices once again shied away from the psychological resistance of US$1,600/ounce and in this process registered a high, just 0.5 cents below this level.
During the Asian session today, traders saw positive eco data as Australian employers boosted payrolls in February by the most in almost 13 years, sending the currency to a one-month high as traders wound back bets the central bank will keep cutting interest rates. While on its neighbors listened as New Zealand’s central bank expects to keep borrowing costs at a record low until next year and signaled it may reduce its benchmark rate if the local dollar rises more than the economy justifies. The kiwi fell.
Inventories in the U.S. rose in January by the most since May 2011 as companies replenished warehouses and shelves amid signs demand will pick up. The 1% increase in goods on hand exceeded the highest forecast in a survey and followed a 0.3 percent gain in December that was more than previously estimated. A proposal by the Federal Reserve Bank of Dallas to limit government support for banks could force JPMorgan Chase & Co. (JPM) and Bank of America Corp. to shrink their U.S. consumer and commercial-lending units by more than half. Lenders are becoming more willing to offer new loans to borrowers who don’t have any home equity after changes to the rules of the U.S. government’s Home Affordable Refinance Program.
Gold is trading with little conviction as with little to no data this week, but later today, news flow should increase as the European Finance Ministers meet in Brussels which could see the euro gain a bit of momentum against the dollar and have a positive effect on gold prices. Traders will also be closely watching a slew of US eco data including unemployment and current account numbers hoping for some guidance as to what to expect from the FOMC’s meeting next week. Gold is expected to remain in a tight range until the March 18th meeting.
Silver on the other might rise on some positive eco data, as the industrial side might be supported by stronger eco data, much like gold no moves are expected ahead of the Fed meet next week.
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