2023-10-11 13:09

Copyrighted Image by: Reuters. Gold prices reached a two-week high on Wednesday, driven by declining U.S. Treasury yields and dovish signals from Federal Reserve officials Raphael Bostic and Neel Kashkari. Spot gold and U.S. gold futures ascended to $1,871.52 and $1,885.20 per ounce respectively, with projections suggesting a potential surge to $1,900 per ounce, according to Jim Wyckoff of Kitco Metals. The likelihood of the Federal Reserve maintaining interest rates within the range of 5.25%-5.50% for the remainder of the year stands at 71%, marking a significant departure from the highs seen in 2007. This shift in monetary policy has been a contributing factor in the recent upswing in gold prices. The bullion market is currently being shaped by several factors, including the forthcoming release of Federal Reserve policy minutes and U.S. Consumer Price Index data. Additionally, an increase in safe-haven demand due to geopolitical tensions related to Hamas is also influencing the market. In other precious metals news, spot silver also saw an increase on Wednesday, rising to $22.02 per ounce. Platinum and palladium, however, experienced varied movements, highlighting the diverse impacts of current market conditions on different precious metals. https://www.investing.com/news/commodities-news/gold-prices-reach-twoweek-high-amid-falling-us-treasury-yields-and-dovish-fed-signals-93CH-3196337

2023-10-11 12:25

Copyrighted Image by: Reuters. Gold prices in Pakistan witnessed a significant increase on Wednesday, according to reports from the All-Pakistan Gems and Jewellers Association (APGJA) and the All Sindh Sarafa Jewellers Association. The per tola price of 24 karat gold in Islamabad rose by Rs. 5,500 to Rs. 205,500 from Rs.199,500 on the previous trading day. Similarly, the ten-gram price of the same quality surged by Rs.4,715 to Rs.175,754 from Rs.171,039. The APGJA reported an uptick in gold prices after a month-long hiatus in updates. Early September saw prices nearing an all-time high of Rs. 240,000 per tola, with the last reported price at Rs. 215,000 on September 12 before a bullion trade suspension led to a drop below Rs. 190,000 per tola last week according to unofficial rates. In addition to the hike in the price of 24-karat gold, the All Sindh Sarafa Jewellers Association also reported an increase in the prices of 10 grams of 22-karat gold to Rs.161,108 from Rs.156,786. However, silver prices remained steady at Rs.2,500 per tola and Rs.2,143.34 for ten grams respectively. On a global scale, there was also an increase in gold prices with a $16 rise that saw gold being traded at $1,872. This rise in international markets parallels the surge experienced in Pakistan's local gold market as reported by both APGJA and the All Sindh Sarafa Jewellers Association. The rise in gold prices comes after a period of stagnation and is likely to impact both local and international traders alike. However, it remains to be seen how this will affect future trading and the overall gold market. https://www.investing.com/news/commodities-news/gold-prices-surge-in-pakistan-global-market-follows-suit-93CH-3196310

2023-10-11 11:17

Copyrighted Image by: Reuters. European gas prices have risen by 20% on Wednesday, due to a confluence of supply concerns originating from conflicts in Israel and Ukraine, as well as potential sabotage on the Balticconnector pipeline. The pipeline, operated by Finnish transmission operator Gasgrid, is under scrutiny with NATO closely monitoring the situation due to suspicions of sabotage, a situation reminiscent of a previous attack on the Nord Stream pipelines allegedly by a pro-Ukrainian group. The rise in prices was further exacerbated when Chevron (NYSE:CVX) was ordered by the Israeli government to halt operations at the Tamar offshore gas field. This move has indirectly affected gas exports to Egypt, raising concerns that Israel and Egypt may prioritize their domestic customers over exports. Despite nearly full gas storage facilities, Europe's heavy reliance on imported fuel could trigger further price hikes in case of unexpected disruptions or colder winters. The Eurasia Group has issued a warning that Finland and Estonia could face winter shortages if other import routes are disrupted. However, Finland has assured that it can secure supplies through a temporary liquefied natural gas terminal. Meanwhile, Estonia could potentially obtain gas from Latvia in the event of such disruptions. The ongoing conflicts in Israel and Ukraine are contributing to the uncertainty in the European gas market. NATO, under Jens Stoltenberg, is vigilant about these developments and their potential impact on energy security in the region. https://www.investing.com/news/commodities-news/european-gas-prices-surge-20-amid-supply-concerns-and-potential-pipeline-sabotage-93CH-3196223

2023-10-11 03:27

Copyrighted Image by: Reuters Investing.com - The U.S. dollar traded largely unchanged in early European hours Wednesday, adopting something of a holding pattern ahead of the release of key inflation data as well as the minutes from the last Federal Reserve meeting. At 03:20 ET (07:20 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded flat at 105.557, near a two-week low. Dovish tone weighs on the greenback The dollar has largely been on the backfoot of late, despite the increased geopolitical uncertainty caused by the weekend’s attack by the Palestinian group Hamas on Israel, as dovish comments from a few Federal Reserve officials have fueled hopes the U.S. central bank is nearing the end of its interest rate increases. Atlanta Fed President Raphael Bostic added to growing feeling that the central bank may be done with its monetary tightening, saying on Tuesday, "I actually don't think we need to increase rates anymore," at a conference in Nashville, Tennessee. This followed several Fed officials noting that recent rises in longer-term yields may help do the central bank’s work of tightening financial conditions to tackle inflation, meaning fewer interest rate hikes. The minutes from the Fed's September meeting are due later in the session, and traders will be studying them to see if they back up this more dovish shift. U.S. inflation data looms large However, these views will only hold weight if inflation continues to show signs of calming. The week's first big inflation report comes out later in the session, with the September producer price index expected to rise 1.6% for the year, and 0.3% from August, while core PPI is expected to rise 2.3% for the year and 0.2% for the month. The key consumer price index for the same month is due on Thursday. German inflation retreats in September EUR/USD rose 0.1% to 1.0608, not far from Tuesday's two-week top of 1.0620, as a consequence of the dollar weakness. German inflation retreated in September, with consumer prices confirmed at an annual 4.5%, a drop from 6.1% the prior month. Inflation should still land at the European Central Bank's target of around 2% by 2025 despite the violence in Israel weighing on commodity prices, ECB policymaker Francois Villeroy de Galhau said on Tuesday. Elsewhere, GBP/USD edged lower to 1.2284, just off the previous session’s three-week high of 1.2303, after data from the Recruitment and Employment Confederation showed that British employers cut their job vacancies for the first time in more than two-and-a-half years in September and reduced their hiring again, adding to signs of a cooling in the labour market. AUD/USD fell 0.1% to 0.6427, NZD/USD fell 0.2% to 0.6030 and USD/CNY rose 0.1% to 7.2988. https://www.investing.com/news/forex-news/dollar-flat-ahead-of-release-of-fed-minutes-ppi-data-3195492

2023-10-11 00:35

Copyrighted Image by: Reuters. Investing.com - Saudi Arabia is truly “balancing” the oil market by preparing to ship full volumes required by its North Asian customers, notwithstanding its output cuts — an act that’s costing it in price-per-barrel. Crude prices fell almost 3% on Wednesday, hanging on to just little of Monday’s 4% surge that came on the back of supply seizure fears related to the latest fighting in the Middle East. New York-traded West Texas Intermediate, or WTI, crude for delivery in November settled down $2.48, or 2.9%, at $83.49 per barrel, after hitting a session low of $83.14. The drop adds to Tuesday’s 0.5% decline in the US crude benchmark. “Going into the new trading day, moving below $82.35 would increase the bearish bias with the next support (being) at the low (of) last week, at $81.56,” markets’ analyst Greg Michalowski said in a posting on the ForexLive forum. London-traded Brent crude for the most-active December contract settled down $1.83, or 2.1%, at $86.48 after an intraday bottom of $85.23. The global crude benchmark finished the previous session down 0.6%. The market had been on weak footing since Tuesday on signs it may have run up too much, too fast without proof that the counterstrikes between Israeli and Palestine forces — ignited by Saturday’s initial attacks carried out by Palestine militant group Hamas — will materially impact oil shipped from the region. While producer group OPEC+ had been quick to assure that its output cuts would continue — with Saudi Energy Minister Abdulaziz bin Salman making that pledge on Sunday itself and Russian President Vladimir Putin reinforcing it on Wednesday — traders remained unconvinced of the need to send crude prices any higher. Saudis assure full cargoes required by North Asia Their resolve was strengthened after Reuters reported that state oil firm Saudi Aramco (TADAWUL:2222) told at least four refiners in North Asia that it would supply them with the full contractual volumes nominated for November. That seemed to challenge the notion that Saudi priority was about keeping the market tight, not assuring that supplies were generously available as needed. “The party line on this is that supply and demand for Saudi oil is stable despite the high prices now, given that Saudi OSP itself has been raised,” John Kilduff, partner at New York energy hedge fund Again Capital, said, referring to the kingdom’s official selling price for its Arab Light crude. “What the market sees instead is Saudi oil readily available to anyone outside of the US who wants it. All the kingdom wants are higher OSPs. In the real market where oil is bought and sold, no one talks of export cuts or market balancing, not the Saudis especially, because if they don’t provide their customers with full cargoes, there’ll be Russian and even US supplies to fulfill that.” Market participants are also on the lookout for US weekly oil inventory data, due after market settlement from the API, or the American Petroleum Institute. The API will release at approximately 16:30 ET (21:30 GMT) a snapshot of closing balances on US crude, gasoline and distillates for the week ended Oct. 6. The numbers serve as a precursor to official inventory data on the same due from the U.S. Energy Information Administration on Wednesday. For last week, analysts tracked by Investing.com expect the EIA to report a crude stockpile drop of 0.37 million barrels, versus the 2.224-million barrel reduction reported during the week to Sept. 29. On the gasoline inventory front, the consensus is for a draw of 1.5M barrels over the 6.481M-barrel jump in the previous week. Automotive fuel gasoline is the No. 1 U.S. fuel product. With distillate stockpiles, the expectation is for a drop of 1.5M barrels versus the prior week’s drop of 1.269M. Distillates are refined into heating oil, diesel for trucks, buses, trains and ships and fuel for jets. https://www.investing.com/news/commodities-news/oil-down-over-3-in-2-days-shredding-war-premium-as-saudis-assure-supply-3195439

2023-10-10 22:22

Copyrighted Image by: Reuters. On Wednesday, the euro appreciated against the U.S. dollar, influenced by a decrease in Treasury yields following dovish comments from Federal Reserve officials and anticipated Chinese stimulus measures. Atlanta Federal Reserve President Raphael Bostic, speaking at the American Bankers Association, expressed that no further interest rate hikes were necessary. This statement led to a slide in the dollar index, with Bostic arguing that the current restrictive Fed policy was sufficient. Despite economic deceleration due to rate hikes, he does not predict a recession. As a result of these sentiments, the euro rose 0.25%, while the dollar index experienced a minor decline of about 0.05%. Traders are keenly awaiting Wednesday's release of minutes from the last Fed policy meeting and key U.S. inflation data due on Thursday. Additionally, China's potential issuance of an additional 1 trillion yuan ($137.1 billion) in sovereign debt to stimulate its economy is seen as beneficial for the euro. The previous day, Tuesday's late trading also witnessed a decrease in U.S. dollar value following dovish comments from both Bostic and Fed Governor Christopher Waller at the same convention. Their statements resulted in a decline in Treasury yields, especially the 10-year Treasury yield which saw its largest single-day fall in almost seven months. Consequently, the dollar index dropped by 0.24 percent to 105.8270. Both Bostic and Waller emphasized the Federal Reserve's commitment to achieving a 2% inflation target, although Waller did not comment on possible interest rate hikes. Traders, using CME's FedWatch tool, anticipate steady interest rates in November and December. The cumulative effect of these events led to an appreciation of both the euro and British pound against the U.S. dollar and a depreciation of the greenback against the Swiss franc. Various factors such as the Israel-Hamas conflict, Columbus Day holiday, Bank of Japan's inflation forecast, reports from the Kyodo news agency, performance of safe-haven assets, and Asian and European stock performance all contributed to shaping global currency trends. Scotiabank's Shaun Osborne suggested that term yields could limit the dollar's progress. https://www.investing.com/news/forex-news/euro-strengthens-against-dollar-amidst-dovish-fed-comments-and-anticipated-chinese-stimulus-93CH-3195415