2024-03-01 05:41

Copyrighted Image by: Reuters. Investing.com-- Gold prices steadied in Asian trade on Friday and were close to breaking above key levels as overnight data spurred hopes that easing inflation will spur interest rate cuts from the Federal Reserve. Spot prices of the yellow metal were now close to breaking above a $2,000 to $2,050 an ounce trading range established through most of 2024. But resilience in the dollar limited any further gains in gold, with the greenback rising in overnight trade and retaining most of its strength in the Asian session. Spot gold steadied at $2,043.64 an ounce, while gold futures expiring in April fell 0.1% to $2,051.95 an ounce by 00:24 ET (05:24 GMT). Both instruments surged between 0.4% and 0.6% on Thursday, also benefiting from month-end buying after a largely muted performance through February. Other precious metals also advanced on Friday. Platinum futures rose 0.3% to $885.45 an ounce, while silver futures rose 0.3% to $22.953 an ounce. PCE data puts June rate cuts in focus, risks persist PCE price index data- the Fed’s preferred inflation gauge- eased as expected in January, data showed on Thursday. The reading spurred hopes that inflation will fall in the coming months and give the Fed enough impetus to cut rates in June. But the CME Fedwatch tool showed traders only slightly increased their expectations for a rate cut in June, while bets on a hold remained steady. A slew of Fed officials also warned that sticky inflation will see the central bank in no hurry to begin loosening policy- indicating that any future upside prints in inflation were likely to diminish the prospect of a June cut. Inflation prints for February and March are now largely expected to determine the trajectory of precious metal prices in the coming months, given that they have moved in line with U.S. rate expectations over the past two years. Rising rates battered gold over the past two years as the opportunity cost of investing in the yellow metal rose. This notion weighed on most other metals. Copper muted after mixed China PMI Among industrial metals, copper prices fell slightly on Friday following mixed economic signals from top importer China. Copper futures expiring in May edged lower to $3.8453 a pound. Official purchasing managers index data from China showed the country’s manufacturing sector shrank for a fifth straight month in February- a trend that bodes poorly for copper demand. But non-manufacturing activity was supported by the Lunar New Year holiday, while a private survey showed expansion in the manufacturing sector. https://www.investing.com/news/commodities-news/gold-prices-close-to-breaking-above-2050-on-us-rate-hopes-3321075

2024-03-01 04:10

Copyrighted Image by: Reuters. Investing.com-- Most Asian currencies weakened on Friday, while the dollar retained overnight gains as signs of continued economic weakness in China largely offset optimism over easing U.S. inflation and interest rates. Purchasing managers index (PMI) data from China showed little improvement in business activity through February, indicating that a recovery in Asia’s largest economy remained sluggish. This notion kept sentiment towards regional currency markets on edge, even as traders began pricing in a slightly higher chance of U.S. rate cuts after overnight inflation data. Chinese yuan dips on mixed PMIs The Chinese yuan fell 0.1% on Friday and remained in sight of recent three-month lows. Official PMI data showed China’s manufacturing sector shrank for a fifth straight month in February. The weak reading largely offset data showing some improvement in non-manufacturing activity, although this increase was largely due to higher consumer spending during the Lunar New Year holiday- a trend which may peter out in the coming months. A separate, private survey showed China’s manufacturing sector expanded in February. But the official reading indicated that China’s biggest manufacturing firms remained under pressure from weak local and overseas demand. Dollar strong as PCE data spurs little rate cut positioning The dollar index and dollar index futures both fell slightly in Asian trade on Friday, but retained a bulk of their overnight gains after data showed inflation eased as expected in January. The PCE price index- the Federal Reserve’s preferred inflation gauge- cooled in January, but remained well above the central bank’s annual inflation target. “Owing to the rapid fall in PCE measured inflation in Q4 last year, there is some scope for temporary slippage in the data and the Fed can still be on track to cut rates this summer. However, if the data stay strong through March, the Fed may have to revisit for how long rates will need to stay high,” analysts at ANZ wrote in a note. The CME Fedwatch tool showed traders were still pricing in an over 30% chance for a hold in June, along with a 56% chance the Fed will cut rates by 25 basis points. Most other Asian currencies were muted on Friday. The Japanese yen relinquished all of its gains on Thursday, trading back above the 150 level as the prospect of higher for longer U.S. rates largely overshadowed any early rate hikes by the Bank of Japan. The Australian dollar rose 0.3% after clocking two days of losses, as investors bet that the Reserve Bank will not raise interest rates any further. Focus was also on key fourth-quarter GDP data due next week. The Singapore dollar was flat, while the Indian rupee extended mild gains from Thursday after data showed Indian GDP grew much more than expected in the December quarter, underscoring India's position as the fastest growing major economy. https://www.investing.com/news/forex-news/asia-fx-weakens-dollar-strong-as-mixed-china-pmi-offsets-rate-cheer-3320978

2024-03-01 02:08

Copyrighted Image by: Reuters. Investing.com-- Oil prices settled at near four-month highs Friday, on growing optimism about tighter global supplies as focus shifts to potential announcement by OPEC+ next week. By 14:30 ET (19.30 GMT), the U.S. crude futures settled 2.2% higher at $79.97 a barrel after briefly topping $80 a barrel intraday for the first time since Nov. 7, 2022. The Brent contract climbed 2.1% to $83.94 a barrel. Both contracts are on a two-month win streak. OPEC+ decision eyed amid tighter supply hopes OPEC and its allies, or OPEC+, are reportedly expected to make a decision on whether to extend production cuts next week, Reuters reported, citing unnamed sources. The rolling over of production curbs -- of about 2.2 million barrels per day that was agreed in November -- into the second quarter has lifted optimism about tighter global crude supply at a time when many are concerned about rising non-OPEC output and China-fueled demand weakness. Rig counts expand to highest since September The number of oil rigs operating in the U.S. rose by 3 to 506, the highest since September, as domestic refiners slowly step-up activity after weather-related disruptions. Still, rig counts continue to trend below levels requited "required to maintain current production," ANZ Research said in a recent note. Domestic production fell to 13.315 million barrels per day in December, from November's record 13.314 million barrels per day. https://www.investing.com/news/commodities-news/oil-prices-edge-higher-on-us-rate-hopes-supply-signals-weigh-3320912

2024-02-29 14:30

AGM Group Holdings Inc. ("AGMH" or the "Company") (AGMH) today unveiled its strategic upgrade aimed at accelerating its global expansion. Focused on advancing its Bitcoin mining and data center operations, AGM Group is diversifying its portfolio to include digital technology, cryptocurrency mining, and technology hardware research and development, manufacture, and sales. Leveraging its extensive history of cultivating customer relationships for mining machine purchases and collaborating with energy partners who possess vast energy reserves, AGM Group is poised to extend its reach into the mining industry. The company's expansion strategy is multifaceted, encompassing self-constructed projects, joint mining ventures, and strategic acquisitions. AGM Group is committed to establishing and operating Bitcoin mining data centers, coupled with offering hosting services, in strategically chosen locations including the United States, Canada, and Central Asia. This initiative represents a significant step forward in AGM Group's journey towards becoming a leader in the global mining sector. Mr. Zhu Bo, Chairman and Chief Executive Officer of AGM Group, shared his excitement about the company's prospects, stating, "We are currently in the early stages of negotiations with energy providers and bitcoin mining farms that possess established mining sites already utilized by clients, in addition to discussions with our customers who are in immediate need of mining hosting services. We anticipate sharing further details shortly. Our initial phase targets include managing up to 200MW of data centers worldwide, aiming for a hash rate of up to 5 EH/s, and deploying over 50,000 mining machines by the end of 2024." He added: "AGMH is set to become a pivotal force in the mining industry, serving as a critical link between two essential domains. On one side, our profound expertise and industry experience place us in an optimal position to understand and fulfill the demands of hosting customers. On the other side, we stand unique with partners who are energy sources but may lack the experience in establishing hosting facilities or accessing potential customers. AGM is poised to bridge this gap, providing necessary expertise and customer access. This strategic enhancement is not just an evolution—it's a transformative step forward in our mission for global expansion, underlining our commitment to innovating within the mining sector and beyond. We firmly believe that this strategy upgrading will position our company with a more comprehensive business structure, drive accelerated growth, and deliver enhanced value returns to our shareholders." https://www.investing.com/news/cryptocurrency-news/agm-group-holdings-announces-strategic-upgrade-432SI-3320166

2024-02-29 13:52

Copyrighted Image by: Reuters Bitcoin soars past $60K amid ETF frenzy but mining stocks underperform Bitcoin (BTC) has surged past the $60,000 mark for the first time since November 2021, driven by a continued influx of exchange-traded fund (ETF) investments. Over the past two days, ETFs have seen a combined net inflow of $1.1 billion, with demand from Bitcoin ETFs outpacing daily Bitcoin production by miners by approximately tenfold. Amid this upward trajectory, analysts at Bernstein highlighted an interesting trend – the underperformance of Bitcoin mining stocks compared to cryptocurrency’s performance. In the past 120 days, following the increased likelihood of ETF approvals, and especially since the launch of ETFs on January 10, Bitcoin mining companies have seen their stock values outpace the gains of Bitcoin. Specifically, Cleanspark (NASDAQ:CLSK) and Marathon Digital (NASDAQ:MARA) have experienced surges of approximately 380% and 250%, respectively, compared to a 70% increase in BTC’s price during the same period. However, amidst Bitcoin’s surge above $60,000 on Wednesday, this trend did not persist. Notably, the flagship crypto asset rose 6% on the day, notably ahead of miners like Riot Platforms (NASDAQ:RIOT) and CLSK, which fell 7.5% and 10%, respectively. Analysts observe that Bitcoin on violent rallies like today sucks away liquidity from the mining stocks. Retail traders end up chasing Bitcoin on days like today, versus mining stocks,” they wrote. They expect Bitcoin miners to be higher beta over at least a reasonable time frame i.e at least a micro BTC cycle e.g the Pre ETF rally, post ETF rally or across the entire BTC cycle which typically would last for 18-24 months. Higher beta is not on a daily basis,” they added. https://www.investing.com/news/cryptocurrency-news/bitcoin-soars-past-60k-amid-etf-frenzy-but-mining-stocks-underperform-432SI-3320081

2024-02-29 05:50

Copyrighted Image by: Reuters. Investing.com-- Gold prices kept to a tight range in Asian trade on Thursday, with traders remaining on the sidelines in anticipation of key U.S. inflation data that is expected to factor into the path of interest rates. The yellow metal was also pressured by overnight comments from Federal Reserve officials that the bank needed to do more work to bring down inflation. This followed a chorus of officials stating that the Fed was in no hurry to begin cutting interest rates early. Concerns over higher-for-longer interest rates kept gold trading squarely within a $2,000 to $2,050 an ounce trading range for nearly two months, as traders balked at a potentially higher opportunity cost of investing in the yellow metal. Spot gold steadied at $2,035.26 an ounce, while gold futures expiring in April were flat at $2,043.45 an ounce by 00:38 ET (05:38 GMT). PCE inflation in focus as Fed officials flag sticky inflation Focus was now squarely on PCE price index data- the Fed’s preferred inflation gauge, due later in the day. The reading is expected to reiterate that U.S. inflation remained sticky in January, especially following a hotter-than-expected consumer inflation reading for the month. The reading also comes after Fed officials John Williams and Raphael Bostic both said the central bank needed to do more work for inflation to meet the bank’s 2% target. Their comments, which came after a slew of similar warnings from other officials, cast more doubts over expectations that the Fed will begin trimming rates early in 2024. While traders are still pricing in a 52.6% chance for a rate cut in June, they have steadily increased bets that the Fed could also hold rates then, according to the CME Fedwatch tool. Higher-for-longer rates are likely to keep the dollar upbeat, and herald more pressure on gold and other precious metals. Platinum futures rose 0.5% to $888.40 an ounce, while silver futures rose 0.3% to $22.705 an ounce. But both metals were nursing between 2% to 5% in losses for February, while gold was set to end the month unchanged. Copper on hold before China PMIs Among industrial metals, copper prices moved within a tight range on Thursday, with focus turning to key economic indicators from top importer China. Copper futures expiring in March rose 0.4% to $3.8540 a pound, and were set to lose 1.3% in February, breaking a three-month winning streak. Focus was largely on upcoming purchasing managers index readings from China, for more economic cues on the world’s largest copper importer. https://www.investing.com/news/commodities-news/gold-prices-move-little-as-preinflation-jitters-fed-comments-weigh-3319452