2024-02-19 05:54

Copyrighted Image by: Reuters Investing.com-- Gold prices rose in Asian trade on Monday, extending a rebound from one-month lows after recently breaking below a key support level, although fears of higher-for-longer U.S. rates kept prices largely rangebound. The yellow metal had briefly broken below the $2,000 an ounce earlier in February, as stronger-than-expected U.S. inflation readings saw traders largely price out the prospect of early interest rate cuts by the Federal Reserve. While gold rebounded back above the support level over the past two sessions, it still remained largely within a $2,000- $2,050 an ounce trading range established since mid-January. The yellow metal has struggled to make headway in the face of sticky U.S. inflation and a hawkish outlook for interest rates. Spot gold rose 0.3% to $2,019.95 an ounce, while gold futures expiring in April rose 0.4% to $2,031.15 an ounce by 00:37 ET (05:37 GMT). Strength in the dollar weighed on gold, as the greenback remained in sight of a three-month high after stronger-than-expected producer price index inflation data on Friday. The reading came just days after a stronger-than-expected consumer price index inflation reading for January. Sticky inflation gives the Fed less impetus to begin immediately loosening monetary policy, with a swathe of Fed officials having warned as much in recent weeks. Focus is now on the minutes of the Fed’s end-January meeting for more cues on interest rates. The Fed had largely downplayed all bets on early rate cuts during the meeting. Higher-for-longer rates bode poorly for gold, given that they increase the opportunity cost of investing in the yellow metal. This notion weighed on other precious metals. Platinum futures fell 0.3%, while silver futures fell 1.3%. Copper prices slip, China cues in focus Among industrial metals, copper prices fell on Monday, but were sitting on strong gains from the prior week on hopes of improving economic conditions in China. Copper futures expiring in March fell 0.4% to $3.8083 a pound, after surging over 4% in the prior week. Data showing increased consumer spending in China, over the Lunar New Year holiday, ramped up hopes over a broader economic recovery in the world’s largest copper importer. https://www.investing.com/news/commodities-news/gold-prices-find-support-above-2000-but-still-rangebound-on-rate-woes-3307218

2024-02-19 05:11

Copyrighted Image by: Reuters. Investing.com-- Most Asian currencies kept to a tight range on Monday, while the dollar steadied near three-month highs as more signs of sticky U.S. inflation saw traders largely phase out expectations of early U.S. interest rate cuts. The dollar index and dollar index futures hovered near three-month highs in Asian trade, after producer price index inflation data released on Friday read higher than expected for January. The reading, which came just days after a strong consumer price index inflation reading, spurred more concerns that sticky inflation will keep the Federal Reserve from cutting interest rates early in 2024. Such a scenario bodes poorly for Asian currencies, with traders now pricing in the possibility of a U.S. rate cut only by June. In Asia, Chinese markets resumed trade on a cautious note, as traders waited to see whether a spending boost during the week-long Lunar New Year holiday will persist in the coming weeks. The yuan fell 0.1% and remained in sight of a three-month low, although further losses were limited by a strong daily midpoint fix from the People’s Bank of China. The central bank is also widely expected to keep its benchmark loan prime rate unchanged on Tuesday, leaving the rate at record lows. Broader Asian units also kept to a flat-to-low range. The Singapore dollar moved little, while the South Korean won fell 0.3%. The Australian dollar rose 0.1% in anticipation of the minutes of the Reserve Bank of Australia’s latest meeting, which are due on Tuesday. The RBA had warned during the meeting that it may not be done raising interest rates, which spurred some strength in the Aussie. The Indian rupee was flat around the 83 level to the dollar, while the Thai baht rose sharply even as data showed the Thai economy grew less than expected in the fourth quarter. Japanese yen flirts with 150 amid intervention watch The Japanese yen flitted around the 150 level to the dollar, as traders remained wary of any potential government action in currency markets. The yen had tumbled to three-month lows over the past week amid growing conviction that the Bank of Japan will be slow in tightening its ultra-loose monetary policy. Pressure from the prospect of higher-for-longer U.S. interest rates also weighed. The 150 level is a key psychological point for the yen, given that sustained forays beyond 150 have attracted strong measures by the Japanese government in the past. Top-level ministers had offered verbal warnings to currency markets last week, after the yen’s latest tumble. Recent data showed that the Japanese economy unexpectedly entered a recession in the fourth quarter of 2023. https://www.investing.com/news/forex-news/asia-fx-muted-dollar-steady-as-strong-inflation-dents-rate-cut-hopes-3307214

2024-02-19 01:34

Copyrighted Image by: Reuters. Investing.com-- Oil prices retreated slightly Monday amid persistent concerns over a looming demand slowdown, which largely offset fears of potential supply disruptions from new attacks in the Red Sea. By 08:15 ET (13.15 GMT), the U.S. crude futures traded 0.3% lower at $78.26 a barrel and the Brent contract dropped 0.2% to $83.27 a barrel, in quiet trading on account of a U.S. market holiday. The Yemen-based, Iran-aligned Houthi group claimed responsibility for an attack on an oil tanker in the Red Sea, presenting little deescalation in geopolitical instability in the Middle East. A growing conflict in the Middle East, especially in the wake of the Israel-Hamas war, has been a key point of support for oil prices, especially as fighting in the Red Sea pointed to delayed oil deliveries to several parts of Asia and Europe. Front-month Brent and WTI futures last week gained about 1.5% and 3% respectively, reflecting increasing risk of Middle East conflict widening. Demand concerns remain However, the market has started the new week on the back foot on concerns over sluggish demand, especially in the face of higher for longer U.S. interest rates and worsening economic conditions across the globe. Stronger-than-expected U.S. consumer and producer inflation data released last week ramped up concerns that the Federal Reserve will have little impetus to cut interest rates early in 2024. Higher rates bode poorly for crude demand, given that they stifle economic activity. The International Energy Agency had last week warned of a demand slowdown in 2024, with the warning coming just as data showed the U.K .and Japan entering a recession. Recent dollar strength weighs While oil prices clocked two straight weeks of gains, they failed to make any major headway beyond a trading range established so far in 2024. Strength in the dollar, especially following strong U.S. inflation readings from last week, also weighed on crude. The greenback slipped slightly Monday with the U.S. on holiday. Other data released last week showed U.S. oil production remaining at record highs of over 13 million barrels per day. Strong U.S. production is widely expected to plug any supply shortfalls arising from Middle East disruptions or output cuts by the Organization of Petroleum Exporting Countries. https://www.investing.com/news/commodities-news/oil-prices-dip-after-positive-week-as-markets-weigh-dour-demand-outlook-3307197

2024-02-16 05:27

Copyrighted Image by: Reuters. Investing.com-- Gold prices moved little in Asian trade on Friday after retaking a key level as weak U.S. retail sales data spurred some doubts over when the Federal Reserve will begin cutting interest rates. Bullion prices rose back above the $2,000 an ounce level on Thursday after breaking well below the level earlier in the week. Some safe haven demand- following data showing recessions in Japan and the UK- also aided gold prices. But despite seeing some relief, the yellow metal was still set for steep weekly losses as traders largely scaled back expectations for early rate cuts, especially following hotter-than-expected consumer price index inflation data earlier this week. Spot gold steadied at $2,003.86 an ounce, while gold futures expiring in April steadied at $2,015.55 an ounce by 00:14 ET (05:14 GMT). Both instruments were set to lose 1.1% this week- their worst week since early-December. Fed’s Bostic warns against early rate cut bets Even after Thursday’s retail sales reading, Fed officials still warned against betting on early rate cuts. Atlanta Fed President Raphael Bostic said that while the central bank had made headway towards lowering inflation, he was still not ready to call for rate cuts yet. Bostic also said that inflation will take longer to decline. His comments came just ahead of producer price index inflation data, which is due later on Friday. San Francisco Fed President Mary Daly is also set to speak later in the day. Fed officials have repeatedly warned that the central bank is in no hurry to raise interest rates, given that the U.S. economy, inflation and the labor market are all still running strong. Such a scenario bodes poorly for gold prices, given that higher rates push up the opportunity cost of investing in the yellow metal. Other precious metals moved in varying directions on Friday, but were set for a much stronger weekly performance than gold, indicating that traders were potentially diversifying out of the yellow metal. Silver futures expiring in March rose 0.3% and were set for a 1.9% weekly gain, while platinum futures expiring in April fell 0.4%, but were set to add 2.7% this week. Copper prices see relief from dollar losses, set for weekly gains Among industrial metals, copper prices advanced on Friday, extending gains from the prior session as a drop in the dollar aided prices of the red metal. Copper futures expiring in April rose 0.4% to $3.7728 a pound, and were set to rise 2.5% this week. But the red metal still remained under pressure from concerns that worsening global economic conditions will dent demand. https://www.investing.com/news/commodities-news/gold-prices-retake-2000-after-weak-retail-sales-weekly-losses-still-on-tap-3305709

2024-02-16 03:45

Copyrighted Image by: Reuters Investing.com-- Most Asian currencies moved little on Friday and were set for a muted weekly performance as markets remained largely convinced that the Federal Reserve will not cut interest rates early this year. Regional currencies took little relief from overnight losses in the dollar, which fell from a three-month high after data showed an unexpected contraction in retail sales in January. But the greenback curbed a bulk of its losses after Federal Reserve Bank of Atlanta President Raphael Bostic cautioned that it may take longer for the central bank to begin cutting interest rates, and that it was still unclear whether inflation would move back within its 2% annual target. The dollar index and dollar index futures both rose 0.1% in Asian trade, and were up about 0.3% this week- their fifth consecutive week of gains. Bostic’s comments also came just a few days after consumer price index data showed inflation unexpectedly picked up in January. Producer price index inflation data and an address by San Francisco Fed President Mary Daly, which are due later in the day, are expected to offer more cues on the path of U.S. interest rates. Still, the U.S. CPI data saw traders begin largely pricing out expectations that the Fed will cut rates by as soon as May, or June. This trade weighed on most Asian currencies, and set them on course for muted weekly moves. Yen hovers around 150 as markets weigh dovish BOJ, intervention The Japanese yen was the worst performer among its peers this week, down 0.6% and trading near a three-month low. The yen was battered by increasing bets that the Bank of Japan will delay its planned interest rate hikes this year, especially as data on Thursday showed Japan unexpectedly slipped into a technical recession in the fourth quarter. The yen was trading at 150.2 to the dollar. But bigger losses in the Japanese currency were limited to anticipation of potential government intervention in currency markets, given that weakness above the 150 level has drawn government intervention in the past. The Australian dollar fell 0.2%, while the Singapore dollar fell 0.1%, taking little support from data that showed the country’s key non-oil exports rebounded more than expected in January. The South Korean won fell 0.4%, while the Indian rupee hovered around the 83 level. Waning bets on early interest rate cuts by the Fed had battered Asian markets at the beginning of the year, with regional currencies seeing little relief in the face of higher-for-longer U.S. rates. https://www.investing.com/news/forex-news/asia-fx-muted-amid-rate-cut-uncertainty-dollar-set-for-fifth-week-of-gains-3305671

2024-02-16 01:36

Copyrighted Image by: Reuters. Investing.com -- Oil prices settled higher Friday, notching a weekly gain as rising Middle East tensions continued to fuel jitters about potential supply disruptions at time when concerns about the demand outlook remain elevated. At 14:30 ET (19.30 GMT), West Texas Intermediate crude futures rose 1.5% to $79.19 per barrel, while Brent oil futures expiring in April rose 0.6% to $83.35 a barrel. Middle East tensions continue to offer support Concerns about a broader conflict in the Middle East, which accounts for a third of global oil output, remained front and center as Israel continued its offensive in Rafa, the southern City of Gaza, while Hezbollah chief Hassan Nasrallah vowed to escalate its battle with Israel. Fresh concerns about supply disruptions in the region helped push sentiment on oil prices higher and offset jitters about a higher for longer interest rate environment in the U.S. denting economic growth. The U.S. producer price index (PPI) increased 0.3% last month following a revised decline of 0.1% in December, Labor Department figures showed on Friday. Economists had predicted a rise of 0.1%. "The latest hotter-than-expected producer price report comes on the heels of a notably hotter consumer price report earlier this week," Stifel said in a note, as the odds of May cut dropped to 35% from 53% last week. Both the U.K. and Japan entered a technical recession in the fourth quarter of 2023, GDP data showed on Thursday. The jitters about global growth come a the IEA reported earlier this week said that global oil demand was slowing. The organization trimmed its 2024 global oil growth forecast to 1.22 million barrels per day (bpd) from 1.24 million bpd. The agency also forecast higher supplies in 2024 amid record-high U.S. production and reluctance among members of the Organization of the Petroleum Exporting Countries to enact deeper supply cuts. The IEA expects supply to grow by 1.7 million bpd in 2024, up from its prior outlook of 1.5 million bpd. https://www.investing.com/news/commodities-news/oil-prices-inch-lower-demand-concerns-chip-away-at-weekly-gains-3305631