2024-02-14 05:36

Copyrighted Image by: Reuters. Investing.com-- Gold prices fell below a key support level in Asian trade on Wednesday after a hotter-than-expected inflation reading for January spurred more fears that the Federal Reserve will keep rates higher for longer. The yellow metal saw extended losses after spot prices slid below the closely-watched $2,000 an ounce support on Tuesday, with analysts warning of more potential declines after the loss of the key support level. Traders were also seen steadily pricing out early interest rate cuts by the Fed, which leaves gold with little scope for recovery in the near-term. The dollar shot up to a three-month high after Tuesday's reading, further pressuring gold. Spot gold fell slightly to $1,992.64 an ounce, while gold futures expiring in April fell 0.1% to $2,005.05 an ounce by 00:06 ET (05:06 GMT). Both instruments lost over 1% each on Tuesday. Spot gold was also below $2,000 an ounce for the first time since mid-December. James Stanley, Senior Strategist at FOREX.com said that $1,975 to $1,978 an ounce was likely to be the next support level for gold- given that it was the last support level seen by the yellow metal in the lead-up to December’s Fed meeting. Sticky inflation dents May, June rate cut bets, gold outlook cloudy Consumer price index (CPI) inflation data on Tuesday showed that U.S. inflation grew more than expected in January, giving credence to recent warnings from the Fed that sticky inflation will keep the bank from cutting interest rates. The CME Fedwatch tool showed traders scaling back bets on rate cuts in May and June, although traders were still pricing in a 51% chance for a 25 basis point cut in June. Still, the prospect of higher-for-longer rates bodes poorly for gold, given that higher rates push up the opportunity cost of investing in the yellow metal. This trend has limited any major gains in gold prices over the past two years. The yellow metal made limited headway beyond $2,050 in recent sessions, although it still gained about 10% in 2023. Copper prices head towards 3-mth low amid dollar pressure Among industrial metals, copper prices saw extended losses on Wednesday and came back in sight of a three-month low, as a stronger dollar and the prospect of slowing economic growth weighed. Copper futures expiring in March fell 0.5% to $3.6922 a pound, and were close to their weakest levels since mid-November. The prospect of higher-for-longer rates also factored into concerns over slowing copper demand, given that economic activity usually cools in a high-rate environment. Copper prices were also still reeling from the discovery of a massive deposit in Zambia, which is expected to eventually increase global supply. But the deposit is expected to take a long time to transform into a full-capacity mine. https://www.investing.com/news/commodities-news/gold-prices-break-below-2000-support-as-hot-cpi-brews-rate-fears-3302802

2024-02-14 04:26

Copyrighted Image by: Reuters. Investing.com-- Most Asian currencies nursed steep losses on Wednesday, while the dollar hovered near three-month highs after stronger-than-expected U.S. inflation data brewed more fears that the Federal Reserve will keep interest rates higher for longer. The Japanese yen was the worst-hit by this trade, as recent dovish signals from the Bank of Japan kept traders largely averse towards the currency. The yen fell past the 150 level to the dollar for the first time since late-November, and was the worst-performing Asian currency this week. A top-ranking BOJ official said that while the bank will begin raising interest rates from ultra-low levels this year, it will likely do so at a slow pace, heralding limited tightening in the ultra-loose monetary conditions that have weighed on the yen in recent months. But a key point of pressure on the yen was expectations of higher for longer U.S. interest rates, especially after Tuesday’s consumer price index (CPI) print. Dollar at 3-mth high as hot CPI batters rate cut bets The dollar index and dollar index futures both fell about 0.1% in Asian trade, but remained squarely in sight of a three-month high. The greenback shot up in overnight trade after CPI data showed inflation remained stickier than expected in January. The reading gave more credence to recent warnings from Fed officials that high inflation will see the bank keep interest rates steady for longer. The reading also saw traders scale back bets on early rate cuts even further. The CME Fedwatch tool showed traders pricing in a 63.5% chance that the Fed will keep rates between 5.25% and 5.5% in May, and will only enact a 0.25% cut in June, of which traders were pricing in a 51% chance. Higher-for-longer U.S. rates bode poorly for risk-heavy, high-yielding Asian currencies, as the gap between risky and low-risk yields narrows. U.S. Treasury yields also shot up after Tuesday's inflation reading. Broader Asian currencies were flat on Wednesday after clocking steep overnight losses. The Australian dollar rose 0.1% after sinking to a three-month low in the prior session. The South Korean won rose 0.2% after clocking its worst intraday loss in nearly a month, while the Singapore dollar hovered around a three-month low. The Chinese yuan was static in offshore trade, but was within sight of a three-month low. Domestic Chinese markets were closed for a week-long Lunar New Year holiday. The Indian rupee moved little on Wednesday, but weakened comfortably past the 83 level once again. The rupee was also in sight of a record low hit in 2023. https://www.investing.com/news/forex-news/asia-fx-rattled-by-hot-us-inflation-japanese-yen-weakens-past-150-3302798

2024-02-14 01:39

Copyrighted Image by: Reuters. Investing.com -- Oil prices settled lower Wednesday after giving up gains as a huge increase in U.S. weekly crude stockpiles and record high domestic production overshadowed a fresh escalation in Middle East tensions. At 14:40 ET (19:30 GMT), West Texas Intermediate crude futures settled 1.6% lower to $76.64 per barrel, while Brent oil futures expiring in April fell 1.4% to $81.60 a barrel. Oil prices had been up 1% earlier in the day. US weekly crude stockpiles jump as output remains at record level Inventories of U.S. crude rose by roughly 12 million barrels in the week ended Feb. 9, well above expectations for a build of about only 3.3M barrels as U.S. production climbed to a record high of 13.31M barrels per day. The larger than expected build in crude oil comes as U.S. refinery utilization dropped to 80.6% from 82.4% last week. Gasoline inventories, one of the products that crude is refined into, fell by about 3.7M barrels against expectations of a draw of only 1.2 million barrels while distillate stockpiles fell by 1.9M barrels, compared to expectations for a fall of 1.6M barrels. Middle East tensions rise as amid Israel strikes in Lebanon Middle East tensions, which have propped up oil prices amid fears of supply disruptions in the oil-rich region, were ratcheted up after Israel launched airstrikes in Lebanon in retaliation to a rockets fired into Northern Israel. Hopes of a Israel-Hamas ceasefire, meanwhile, were dealt a blow after Israeli prime minister Benjamin Netanyahu called for a "powerful" operations in Rafa, defying calls from the international community to proceed carefully. (Amber Warrick continued to this report.) https://www.investing.com/news/commodities-news/oil-prices-dip-on-signs-of-massive-us-inventory-build-hot-cpi-data-3302782

2024-02-13 22:08

Copyrighted Image by: Reuters Investing.com -- U.S. crude stockpiles increased much more than expected last week, the API reported Tuesday, but product inventories including gasoline fell more than expected. Crude Oil WTI Futures, the U.S. benchmark, traded at $77.83 a barrel following the report after settling up 1.2% at $77.98 a barrel. U.S. crude inventories rose by about 8.5 million barrels for the week ended Feb. 9, compared with a build of 674,000 barrels reported by the API for the previous week. Economists were expecting an increase of about 2.6M barrels. The API data also showed that gasoline inventories fell by about 7.2 million barrels, while distillate stockpiles fell by 4.0M barrels, confounding expectations for a draw of about 1 million barrels and 2.2M barrels, respectively. The official government inventory report due Wednesday is expected to show weekly U.S. crude supplies decreased by about 2.6M barrels last week. https://www.investing.com/news/commodities-news/oil-inventories-in-huge-upside-surprise-rising-by-85m-barrels-last-week--api-3302721

2024-02-13 14:11

Copyrighted Image by: Reuters Peter Thiel's VC firm injected $200 million in bitcoin and ether before bull run According to Reuters, Peter Thiel’s Founders Fund has made a new investment in bitcoin and ether before the beginning of the ongoing crypto bull run. Amidst a resurgence of interest in the cryptocurrency sector from Silicon Valley, the venture capital firm reportedly allocated $200 million towards purchasing these cryptocurrencies in the period from late summer to early autumn of 2023. The investment was equally divided between the top two cryptocurrencies by market cap. The move, which had not been disclosed before, highlights a renewed engagement from some institutional investors in the cryptocurrency market, which faced challenges in 2022 due to the downfall of major entities like the crypto exchange FTX, leading to a decrease in valuations, damage to the sector's reputation, and increased regulatory scrutiny. Founders Fund began purchasing BTC when its price was under $30,000 and continued to buy both bitcoin and ether over the following months. The average purchase price of these cryptocurrencies could not be determined, the report adds. https://www.investing.com/news/cryptocurrency-news/peter-thiels-vc-firm-injected-200-million-in-bitcoin-and-ether-before-bull-run-432SI-3302306

2024-02-13 05:57

Copyrighted Image by: Reuters. Investing.com-- Gold prices kept to a tight range on Tuesday, remaining under pressure from the dollar as investors hunkered down before inflation data that is widely expected to factor into the Federal Reserve’s plans for interest rates. The yellow metal had fallen back into a $2,000 to $2,050 an ounce trade range over the past week, as traders began steadily phasing out expectations of early interest rate cuts by the Fed. A slew of Fed speakers also warned last week that the bank was in no hurry to cut interest rates early, amid fears of sticky inflation. This saw the dollar shoot up to three-month highs, which weighed on gold. The greenback edged higher in Asian trade. Spot gold steadied at $2,020.06 an ounce, while gold futures expiring in April were flat at $2,033.45 an ounce by 00:33 ET (05:33 GMT). CPI data awaited for more Fed, rate cut cues Data due later on Tuesday is expected to show consumer price index (CPI) inflation eased in January. But the reading is also expected to remain well above the Fed’s 2% annual target, giving the central bank little cause to begin cutting interest rates early. This scenario bodes poorly for gold, given that higher rates push up the opportunity cost of buying bullion, which offers no yield. Markets have been steadily pricing out expectations for rate cuts in March and May, and now see only a 45% chance of a 25 basis point cut in June, according to the CME Fedwatch tool. Gold prices had tumbled amid the waning bets on early rate cuts. Spot prices were now trading just $20 above the closely-watched $2,000 an ounce support level, which analysts say could be tested in the near-term, especially in the wake of a stronger inflation reading. Copper prices rebound, more economic cues awaited Among industrial metals, copper prices rose sharply from a three-month low after expectations of increased supply- following the discovery of a massive copper deposit in Zambia- drove steep losses last week. Copper futures expiring in March rose 0.8% to $3.7485 a pound. But the Zambia deposit will take years to develop into a fully operational mine, which indicates that the perceived supply bump in copper will not materialize in the near-term. On the demand front, focus was now on more readings from major economies this week for more clear cues on copper demand. Fourth quarter GDP data from the euro zone, UK and Japan is due later this week. https://www.investing.com/news/commodities-news/gold-prices-trade-sideways-cpi-data-awaited-for-more-rate-cues-3301704