2024-02-12 05:27

Investing.com-- Gold prices moved little in holiday-thinned Asian trade on Monday, with the yellow metal keeping to a trading range established over the past week as traders sought more cues from upcoming U.S. inflation data. Among industrial metals, copper prices hit a near three-month low after KoBold Metals- a startup backed by Microsoft (NASDAQ:MSFT) founder Bill Gates, found a large copper deposit in Zambia that could form a major copper mine. Waning expectations of early interest rate cuts by the Federal Reserve saw gold fall back into a $2,000 to $2,050 trading range in February, as markets began steadily pricing out chances of a rate cut in March and May. A dearth of direct cues over the past week also gave gold few cues, with traders now looking to the upcoming consumer price index (CPI) data as the next big signal. Spot gold fell 0.1% to $2,023.48 an ounce, while gold futures expiring in April fell 0.1% to $2,037.20 an ounce by 00:07 ET (05:07 GMT). Trading volumes in the two were muted on account of market holidays in China, Hong Kong, South Korea and Japan. CPI data, Fed signals in focus Gold is expected to see little action ahead of U.S. CPI data on Tuesday. While the reading is expected to show that inflation eased further in January, price pressures are still expected to remain well above the Fed’s 2% annual target, giving the central bank more impetus to keep interest rates higher for longer. Along with the inflation data, a sting of Fed officials, including Neel Kashkari, Mary Daly and Ralph Bostic are on tap this week. Fed officials are expected to reiterate recent comments that the central bank is in no hurry to begin trimming interest rates. This notion had sparked steep losses in gold earlier in February, given that higher rates push up the opportunity cost of investing in the yellow metal. The dollar also remained in sight of a recent three-month high, keeping gold prices under pressure. Still, gold managed to hold above the $2,000 an ounce support, although analysts cautioned that the level may be tested in the coming days. Copper sinks on discovery of large deposit in Zambia Copper prices fell on Monday, extending losses from the prior session on fears of a potential increase in global supplies. Copper futures expiring in March fell 0.4% to $3.6727 a pound- their weakest level since mid-November. KoBold Metals, a start-up backed by Microsoft founder Bill Gates, said it had discovered a huge copper deposit in Zambia, which could potentially form one of the largest mines in the world. Zambian President Hakainde Hichilema said that the deposit- found in the Mingomba Project- could produce between 500 to 600,000 metric tons of copper when operational. In comparison, Chile's Escondida Mine- which is considered the world's largest copper mine by production, produced about 1 million tons of copper in 2022. The discovery points to a potential increase in copper supplies over the coming years- heralding more pressure on prices of the red metal, which usually benefit from tighter market conditions. Copper was already nursing steep losses so far in 2024 amid persistent concerns over slowing demand in top importer China. https://www.investing.com/news/commodities-news/gold-prices-muted-before-inflation-data-copper-sinks-on-zambia-discovery-3300174

2024-02-12 04:03

Copyrighted Image by: Reuters. Investing.com-- Most Asian currencies moved in a tight range on Monday as market holiday across most of the region kept trading volumes limited, while the dollar fell slightly before key inflation data due this week. Chinese, Singapore, South Korean and Hong Kong markets were closed for the Lunar New Year holiday, while Japanese markets were closed for memorial day. This saw most regional currencies clock limited moves, while anticipation of the U.S. inflation reading also kept traders averse to risk-heavy currencies. The Chinese yuan fell 0.1% in offshore trade, while the Australian dollar fell 0.1%. The South Korean won also lost 0.1%. The Indian rupee was flat before key consumer price index (CPI) inflation data due on Tuesday. The reading is expected to show inflation remaining sticky, and comes just days after the Reserve Bank of India said it will remain hawkish to keep inflation in check. Dollar creeps lower with CPI, Fed comments on tap The dollar index and dollar index futures fell 0.1% each in Asian trade as traders awaited a slew of cues on U.S. interest rates this week. CPI data for January is due on Tuesday and is expected to show some easing in inflation. But price pressures are still expected to remain relatively sticky, with the core CPI print in particular set to remain well above the Federal Reserve’s 2% annual target- a scenario that gives the Fed more impetus to keep rates higher for longer. Beyond the inflation data, addresses from several Fed officials, including Neel Kashkari, Mary Daly and Ralph Bostic are on tap this week. Central bank officials are widely expected to further downplay bets on early interest rate cuts. Waning bets on early monetary loosening by the Fed battered Asian currencies in recent sessions, and kept the dollar within sight of a three-month peak. Japanese yen hovers at 2-½ month low on dovish BOJ The Japanese yen moved little on Monday, but was nursing steep losses from the past week after Bank of Japan Deputy Governor Shinichi Uchida said that any scaling back of the bank’s ultra-dovish stance will be gradual. While Uchida did flag an eventual end to the BOJ’s low interest rate regime, his comments saw traders price out any chances of rapid interest rate hikes by the BOJ. Such a scenario bodes poorly for the yen, which was battered by a growing rift between local and U.S. interest rates over the past two years. The yen traded close to its weakest level since late-November, at 149.23 to the dollar. It is the worst-performing Asian currency so far in 2024. https://www.investing.com/news/forex-news/asia-fx-treads-water-dollar-edges-lower-before-cpi-test-3300148

2024-02-12 02:04

Copyrighted Image by: Reuters. Investing.com-- Oil prices settled slightly Monday as a step-up in geopolitical tensions in Middle East supported bullish bets on energy. At 14:30 ET, West Texas Intermediate crude futures settled $0.10 higher at $76.92 per barrel, while Brent oil futures expiring in April fell 0.2% to $82.00 a barrel. Middle East Tensions ratchet up as Israel prepares ground offensive of Rafa Israel launched airstrikes over the weekend in preparation for a ground invasion of the southern Gaza city of Rafa, stoking further worries that Israel-Hamas war -- a key point of support for oil in recent months due in part to concerns that the conflict could cause disruptions in global oil supplies -- is set to escalate further. Middle East tensions have continued to support oil prices offsetting a recovery in U.S. production, which increased to record highs in February after cold weather-related disruptions in production. But U.S. fuel supplies were tightened by several refiners remaining shut for maintenance. Gasoline futures had shot up nearly 9% in the prior week, although whether the trend would persist remained in doubt, given that U.S. fuel demand was also seen weakening in cold weather. OPEC, IEA reports; U.S. inflation on tap this week The Organization of the Petroleum Exporting Countries is set to release its monthly report on Tuesday, followed by the International Energy Agency on Thursday. Ahead of the monthly reported, Saudi Arabia’s Energy Minister, Abdulaziz bin Salman Al Saud, said Monday that OPEC remains prepared to adjust output policy as needed. At the most recent meeting, OPEC and its allies, or OPEC+, decided to keep production levels unchanged and will decide in December whether to extend voluntary oil output cuts. Inflation data due Tuesday will also play a role in dominating market moves as it will likely filter into the Fed's thinking on monetary policy. Headline U.S. consumer price index is expected to have slowed marginally in January. https://www.investing.com/news/commodities-news/oil-prices-dip-after-strong-week-opec-middle-east-cues-in-focus-3300139

2024-02-09 15:27

Copyrighted Image by: REUTERS Investing.com -- Oil prices were on pace to end the week higher on Friday, as ongoing violence in the Middle East showed little sign of abating after Israel rejected a ceasefire offer from Hamas. At 09:45 ET (14:45 GMT), the Brent oil futures contract expiring in April was up 0.9% at $82.40 a barrel, while West Texas Intermediate crude futures climbed by 1.3% to $77.22 per barrel. Israeli forces launched a fresh attack on southern Gaza on Friday despite warnings of a high death toll among Palestinians in the area from aid groups and U.S. President Joe Biden. Israel had previously carried out a bombing on the southern border city of Rafah on Thursday following a decision by Prime Minister Benjamin Netanyahu to refuse to bring hostilities to a halt. Crude prices, which rose in the prior session, are now on track to increase by nearly 7% versus the prior week. "There had been suggestions, or at least hope, that we could see a ceasefire, which could have helped to de-escalate the situation. But clearly, the concern now is we see further escalation," analysts at ING said in a note. The Israel-Hamas conflict and its implications on broader tensions throughout the Middle East have cast doubt over supplies out of the crucial region, placing upward pressure on oil prices. https://www.investing.com/news/commodities-news/oil-prices-rise-amid-ongoing-middle-east-hostilities-3299538

2024-02-09 13:11

Copyrighted Image by: Reuters Crypto stocks leap as Bitcoin (BTC) crosses $47,000 Investing.com -- For the first time in almost a month, Bitcoin (BTC) crossed above the $47,000 mark on Friday, pushing crypto-related stocks into the green ahead of the stock market open. The leading cryptocurrency rose 4.5% in the past 24 hours, sitting at around $47,300 at the time of writing. As for the cryptocurrency stocks, CleanSpark (NASDAQ:CLSK) led the gains, soaring more than 22% in premarket trading. The jump came after the Bitcoin miner closed 12.8% higher on Thursday, boosted by a strong FQ1 earnings report. Other crypto mining companies Riot Platforms (NASDAQ:RIOT) and Marathon Digital (NASDAQ:MARA) also took off, surging around 9.2% and 10.7% respectively. Meanwhile, crypto exchange Coinbase (NASDAQ:COIN) advanced more than 6%, while Michael Saylor’s MicroStrategy (MSTR) rose 6.6%. https://www.investing.com/news/cryptocurrency-news/crypto-stocks-leap-as-bitcoin-crosses-47000-432SI-3299226

2024-02-08 05:31

Copyrighted Image by: Reuters. Investing.com-- Gold prices drifted slightly lower on Thursday, taking little support from a decline in the dollar and yields as markets remained on edge over the prospect of higher-for-longer U.S. interest rates. But the yellow metal stuck largely within a trading range of $2,000 and $2,050 established over the past week, with traders now awaiting more cues on the path of interest rates. Gold prices fell within a holding pattern after robust U.S. economic data and a chorus of hawkish Federal Reserve comments saw markets largely price out expectations for early interest rate cuts this year. With the central bank now expected to begin trimming rates only from June 2024, the near-term outlook for gold remained cloudy. A spike in the dollar- to three-month highs- also pressured bullion prices, although the greenback saw a heavy dose of consolidation this week. Spot gold fell 0.1% to $2,032.61 an ounce, while gold futures expiring in April fell 0.2% to $2,047.55 an ounce by 00:13 ET (05:13 GMT). Higher interest rates diminish gold's appeal by increasing the opportunity cost of investing in the yellow metal. Gold to remain rangebound, but downside limited by other factors- Goldman Sachs Goldman Sachs analysts wrote in a recent note that while the prospect of later U.S. rate cuts presented some headwinds to bullion prices, any major losses in gold would be limited by a slew of factors. Analysts expect physical demand for gold to remain high on consistent buying by central banks and steady demand in emerging markets. Goldman Sachs analysts maintained their 12-month target price for spot gold at $2,175 an ounce. Increased geopolitical uncertainty, especially after the rejection of a Israel-Hamas ceasefire this week, also pointed to higher safe-haven demand for gold in the near-term. Copper prices near three-week low on negative China cues Among industrial metals, copper prices rose slightly on Thursday but were pinned near three-week lows following more weak economic cues from top importer China. Copper futures expiring in March rose 0.4% to $3.7523 a pound, but were just above their lowest levels since mid-January. Consumer inflation data from China read weaker than expected for January, while producer inflation shrank for a sixteenth consecutive month. The consumer price index also fell at its worst pace since late-2009. The data indicated that China’s economy was still struggling with deflation amid slowing growth, which in turn factored into concerns over a slowdown in Chinese copper demand. https://www.investing.com/news/commodities-news/gold-prices-in-a-holding-pattern-in-anticipation-of-more-rate-cues-3296668