2023-12-07 05:44

Copyrighted Image by: Reuters. Investing.com-- Gold prices moved little in Asian trade on Thursday as traders hunkered down in anticipation of more cues on a cooling U.S. labor market, while focus also remained on when the Federal Reserve planned to begin trimming interest rates. The yellow metal appeared to have settled into a trading range of between $2,020 and $2,050 an ounce after briefly surging to record highs above $2,100 at the beginning of the week. A string of different factors had spurred gold’s rally, as seemingly dovish cues from Fed Chair Jerome Powell pushed up expectations that the Fed will cut rates by as soon as March 2024. But markets tapered these expectations over the week, especially amid some signs of resilience in the U.S. economy. Increased safe haven demand, following an attack on U.S. vessels in the Red Sea, also aided gold prices, although a lack of any escalation in the Middle East saw tensions ebb out of markets. Spot gold steadied at $2,026.30 an ounce, while gold futures expiring in February fell 0.2% to $2,043.05 an ounce by 00:24 ET (05:24 GMT). Nonfarm payrolls in focus as markets speculate over Fed cuts Traders were now focused squarely on nonfarm payrolls data for November, due on Friday, for any more cues on the labor market. Job openings and payrolls data released earlier this week signaled some cooling in the U.S. labor market. But markets were awaiting definitive signals from the nonfarm payrolls reading. The reading is also due amid growing uncertainty over the timing of the Fed’s interest rate cuts. While the central bank is widely expected to keep rates on hold next week, markets were uncertain over when it could begin loosening policy. So far, Fed officials have shown little inclination to begin cutting interest rates, with Powell having recently reiterated his higher-for-longer stance. But traders are betting that a further cooling in inflation and the labor market will see the Fed change its tone in the coming months. Gold is expected to benefit from any signals of a less hawkish Fed and a cooling labor market. The yellow metal has comfortably held the $2,000 level since late-November, which could herald more strength in the coming weeks. Copper rebounds on positive China import data Among industrial metals, copper prices rose sharply on Thursday, rebounding from three straight days of losses as data showed Chinese imports of the red metal surged to a two-year high. Copper futures expiring in March rose 0.7% to $3.7568 a pound. China’s copper imports jumped 10.1% in November to 550,566 metric tons- their highest since December 2021. The data indicated that Chinese copper demand remained robust, even as other aspects of the economy slowed. China’s overall imports unexpectedly shrank in November, while exports grew for the first time in six months. Upgrade your investing with our groundbreaking, AI-powered InvestingPro+ stock picks. Use coupon INVSPRO2024 to avail a limited time discount on our Pro and Pro+ subscription plans. Click here to know more, and don't forget to use the discount code when checking out! https://www.investing.com/news/commodities-news/gold-prices-steady-with-us-labor-data-rate-cut-bets-in-focus-3251171

2023-12-07 05:03

Copyrighted Image by: Reuters Investing.com - The dollar dipped in European trade on Thursday, as markets remained on edge before key U.S. labor data, while the yen appreciated as Bank of Japan Governor Kazuo Ueda offered more cues on a potential pivot away from the central bank’s ultra-dovish stance. At 06:42 ET (11:42 GMT), the U.S. dollar index, which tracks the greenback against a basket of six other currencies, traded 0.2% lower at 103.94. "The underlying dollar story [...] will be determined, by tomorrow's US jobs report and next week's [Federal Open Market Committee] meeting," analysts at ING said in a note. While the Fed is widely projected to keep interest rates on hold in December, markets have been unsure when the U.S. central bank plans to begin trimming borrowing costs. The uncertainty has aided the dollar, even as private employment data pointed to more cooling in the labor market. The closely-watched nonfarm payrolls report due on Friday is expected to provide definitive clues about the jobs picture in the world's largest economy, and will likely factor into the trajectory of the dollar for the remainder of the year. Yen in focus in Asia The yen was the best performer in Asia for the day, strengthening by 1.6% against the greenback after Ueda flagged more challenges for the BOJ in the coming months, and also spoke about options the bank has when considering a move away from negative interest rates. His comments reinforced expectations that the BOJ will wind down its ultra-dovish, stimulus-heavy policies in the coming year. But the unclear timing of the pivot kept traders wary. Gains in the yen were still held back by Ueda stressing the need for loose policy in the near-term, especially amid signs that the Japanese economy was cooling further. Yuan flat after mixed trade data, FX intervention eyed The Chinese yuan was steady in Asian trade on Thursday after data showed a bigger-than-expected improvement in China’s trade surplus through November. Chinese exports rose for the first time in six months, albeit marginally. But an unexpected drop in imports fueled concerns over easing domestic demand, especially as economic activity in the country remained languid. A string of readings for November, released earlier this month, exacerbated worries over sustained weakness in China’s economy. Traders were also watching for any more currency market intervention by the Chinese government, after several state banks were seen selling dollars for yuan on the open market. Swiss franc surges versus euro The euro inched only marginally higher against the dollar and slumped to its lowest level EUR/CHF since January 2015, as markets eyed the potential for early rate cuts by the European Central Bank next year following a string of weak economic data. Recent figures have suggested that the eurozone economy may be heading into a recession in the final quarter of this year, after it contracted by 0.1% in the prior three month period. On Thursday, numbers from Germany's federal statistics office showed that industrial production in Europe's largest economy dropped for the fifth consecutive month in October. Factory orders in the country also contracted by 3.7% in October, reversing a gain of 0.7% in September, according to separate data earlier this week. Across the eurozone, retail sales inched up by 0.1% in October, below economists' estimates for an uptick of 0.2%, hinting at a soft consumer spending environment heading into the key holiday shopping season. A possible slowdown, coupled with inflation across the eurozone falling more quickly than most anticipated, has led many observers to suspect that the European Central Bank could deliver its first rate cut by March. Upgrade your investing with our groundbreaking, AI-powered InvestingPro+ stock picks. Use coupon code PROPLUSBIYEARLY to get a limited time discount on our Bi-Yearly subscription plan. Click here to find out more, and don't forget to use the discount code when checking out. https://www.investing.com/news/forex-news/asia-fx-muted-with-us-labor-data-in-focus-yen-buoyed-by-boj-3251151

2023-12-07 04:48

LIMA - U.S. Global Investors, Inc., a seasoned investment advisory firm, has expanded its footprint in the Peruvian financial market with the listing of its gold mining and royalty exchange-traded fund (ETF), GOAU, on the Lima Stock Exchange. The launch was announced by CEO Frank Holmes on Wednesday, who underscored the strategic nature of the move, given Peru's prominence as Latin America's top gold producer and its mining sector's substantial contribution to the country's GDP. The decision to list GOAU in Peru follows the firm's successful introduction of the Jets ETF on the Lima exchange in December 2020. GOAU's quantitative model is designed to select stocks based on financial stability and return on investment criteria, offering Peruvian investors specialized access to gold mining companies and royalty companies. The fund specifically aligns with significant players in the industry, such as Franco-Nevada and Wheaton Precious Metals (NYSE:WPM), which have operations in Peru. In addition to this strategic expansion, U.S. Global Investors has been actively managing its share repurchase program. In November 2023, the company significantly accelerated its efforts by acquiring 44,757 shares for $128,000 — an 80% increase from purchases made in the same month of the previous year. The recent developments reflect U.S. Global Investors' commitment to providing innovative investment solutions across various asset classes, including digital assets. https://www.investing.com/news/cryptocurrency-news/us-global-investors-launches-gold-etf-on-lima-stock-exchange-93CH-3251150

2023-12-07 01:58

Copyrighted Image by: Reuters. Investing.com - Oil prices settled lower Thursday as a rebound from six-month lows proved short lived as fresh demand worries and ongoing oversupply concerns quashed an intraday rebound. By 14:30 ET (19:30 GMT), the U.S. crude futures settled 0.06% lower at $69.34 a barrel, while the Brent contract fell 0.34% to $74.95 per barrel. Rebound fades as oversupply concerns persist amid fresh demand jitters Chinese customs figures showed that crude oil imports in November slipped by 9% compared to the same period last year, a reading that exacerbated fears over demand in the country and limited oil price gains. A decision by rating agency Moody's (NYSE:MCO) to downgrade the outlook for China's sovereign debt rating earlier this week has also dented investor sentiment. Moody's flagged increased risks to the world's second-largest economy from a property market meltdown, as well as a lack of clear policy support from the government. Analysts quoted by Reuters added that markets were also worried by a higher-than-expected build in U.S. gasoline stocks, which hinted at faltering demand in the world's biggest oil consumer. U.S. gasoline futures slumped to a near two-year low after the data, which also showed a larger-than-anticipated draw in overall crude inventories over the week to Dec. 1. Russian, Saudi leaders meet after OPEC+'s voluntary cuts underwhelm On Wednesday, Russian President Vladimir Putin met with Saudi Crown Prince Mohammed bin Salman, with the two reportedly discussing further co-ordination between OPEC+ member states. Saudi Arabia and Russia have led the group of major oil producers in cutting supply throughout 2023 in an attempt to give support to crude prices. Oil prices have slipped by around 10% since OPEC+, the common moniker of the Organization of the Petroleum Exporting Countries and its allies including Russia, announced output reductions last week. The cuts were only voluntary in nature for the group's members, leaving many traders skeptical of their ability to lift prices. But while the OPEC+ announcement underwhelmed markets, it is still expected to help tighten crude markets marginally in the first quarter of 2024. Analysts expect Brent to trade in the low $80s in early-2024. Upgrade your investing with our groundbreaking, AI-powered InvestingPro+ stock picks. Use coupon code INVESTPRO to get a limited time discount on our InvestingPro+ subscription plan. Click here to find out more, and don't forget to use the discount code when checking out. https://www.investing.com/news/commodities-news/oil-prices-rise-after-bruising-losses-amid-talks-of-more-opec-measures-3251115

2023-12-06 18:50

Copyrighted Image by: Reuters. NEW YORK - Citi analysts are projecting a difficult year ahead for energy stocks in 2024, following the Organization of the Petroleum Exporting Countries and allies (OPEC+) decision to cut production. The analysts anticipate an oversupply in the oil market that could lead to asset price deflation and lower commodity prices. This comes as a significant shift from the market squeeze previously orchestrated by OPEC+. According to Citi's analysis, there is an expected excess in spare capacity of over 3 million barrels per day, which may contribute to a drop in oil equities' performance. As a result, West Texas Intermediate (WTI) crude is projected to be priced at $71 and Brent crude at $75 in the coming year. Despite these potential headwinds, Citi notes that the oil industry's strong balance sheet could provide some resilience. The robust financial standing of many oil companies might help to offset increased refinancing costs and allow them to maintain shareholder distributions. Moreover, this financial stability could facilitate market actions such as mergers and acquisitions (M&A) activity, even as the industry navigates through the ramifications of OPEC+'s previous production cuts. https://www.investing.com/news/commodities-news/citi-forecasts-challenging-2024-for-energy-stocks-amid-oversupply-93CH-3250924

2023-12-06 15:59

Copyrighted Image by: Reuters. NEW DELHI - The Indian Rupee depreciated against a strengthening US Dollar today, as India's services sector experienced a slowdown in growth. The S&P Global Services Purchasing Managers' Index (PMI) for November fell to 56.9, a decline from October's 58.4 and below the anticipated 58.0 mark. Despite this deceleration, the sector continues to demonstrate significant expansion, maintaining above the 50-level threshold that distinguishes growth from contraction. The economic forecast for India remains positive with S&P predicting a rapid growth rate of 7% by the fiscal year 2026-27. This optimism is reflected in the country's stock market valuation surpassing $4 trillion, securing its position as the fifth-largest in the world. Additionally, inflation readings have shown moderation with core Consumer Price Index (CPI) at 4.5% and overall CPI at 4.87% year-on-year as of October. These figures are consistent with expectations that the Reserve Bank of India (RBI) will likely maintain the repo rate at the current level of 6.5%. In contrast to India's services sector performance, US economic indicators have presented a mixed picture with an increase in ISM Services PMI to 52.7, indicating expansion in the services sector. However, there has been a decrease in JOLTS Job Openings to levels not seen since March 2021. These developments are influencing market expectations regarding the Federal Reserve's interest rate policy, with some investors anticipating a potential pause or reversal in rate hikes between March and May. https://www.investing.com/news/forex-news/indian-rupee-weakens-as-services-sector-growth-slows-93CH-3250815