2024-03-05 06:03

Copyrighted Image by: Reuters. Investing.com-- Gold prices moved little in Asian trade on Tuesday, remaining within sight of record highs as uncertainty over the global economy and some bets on early interest rate cuts drove a sharp melt-up in bullion. But the rally now appeared to have paused before more signals on the U.S. economy, particularly from comments from the Federal Reserve and key labor market data due later in the week. Spot gold rose 0.2% to $2,118.59 an ounce, while gold futures expiring in April steadied near $2,126.75 an ounce by 00:40 ET (05:40 GMT). Both instruments settled above $2,100 an ounce for the first time ever on Monday, and were now close to record highs of $2,135.72 an ounce for spot and $2,130.20 an ounce for futures. Demand for the yellow metal was boosted by some indicators that the U.S. economy was cooling, while signs of a recession in Europe and Japan, coupled with underwhelming growth forecasts from China, also factored into safe haven demand. Powell testimony, payrolls data adds air of caution But further gains in gold were held back by anticipation of more cues on U.S. interest rates, particularly from Fed Chair Jerome Powell this week. Powell is set to testify before Congress on Wednesday, with analysts expecting the Fed Chair to largely maintain his hawkish rhetoric. After Powell, nonfarm payrolls data on Friday is expected to provide more cues on the labor market, which has also been a key consideration for the Fed in adjusting interest rates. High U.S. interest rates have remained a key risk factor for gold prices, and have limited any trysts by the yellow with record highs. Higher rates pressure gold by increasing the opportunity cost of investing in the yellow metal. Other precious metals also saw some, albeit fleeting gains this week. Platinum futures fell 0.7% to $896.60 an ounce after briefly clearing the $900 level, while silver futures rose 0.2% to $24.040 an ounce. Copper muted as China’s economic goals underwhelm Among industrial metals, copper futures expiring in May fell 0.1% to $3.8507 a pound. Prices of the red metal moved little in response to largely underwhelming economic signals from top importer China. Beijing set a target of 5% for 2024 GDP- the same as 2023, while offering more promises of policy support for the economy. But a lack of clear, concrete measures to support growth inspired little cheer over China. Separate data also showed that China’s services sector grew less than expected in February, presenting continued weakness in the economy. https://www.investing.com/news/commodities-news/gold-prices-sit-close-to-record-highs-more-rate-cues-awaited-3324023

2024-03-05 04:54

Copyrighted Image by: Reuters. Investing.com-- Most Asian currencies moved little on Tuesday as China’s economic goals for 2024 failed to liven up markets, while the dollar steadied before more cues on interest rates due later in the week. Anticipation of more cues on U.S. rates also kept most regional units trading in a tight range, especially as comments from Federal Reserve officials continued to downplay expectations for early cuts. Chinese yuan muted as National People’s Congress underwhelms The Chinese yuan moved little on Tuesday, with losses in the currency held back by a strong midpoint fix from the People’s Bank of China. Sentiment towards China saw little improvement after Beijing set a 5% GDP target for 2024, the same as 2023. But with a lower fiscal deficit target for the year, investors questioned just how achievable the target seemed, now that the economy no longer had a lower base for comparison from the COVID-19 pandemic. The Chinese government also promised more stimulus measures this year to shore up growth. But a lack of clarity on the proposed measures inspired little cheer. Separately, a private survey showed growth in China’s services sector slowed in February, pointing to continued economic headwinds for the country. Broader Asian currencies took negative cues from China, given the country’s economic prominence in the region. The Australian dollar, which has high trade exposure to China, fell 0.1%, even as data showed an improvement in the country’s current account in the fourth quarter. The reading heralds a potential improvement in fourth quarter GDP data, which is due on Wednesday. The Singapore dollar and South Korean won retreated, while the Indian rupee tread water. The Japanese yen hovered near a four-month low, even as data showed that inflation in Tokyo rebounded as expected in February. Sticky inflation gives the Bank of Japan more impetus to raise interest rates from ultra-low levels. Dollar steadies with Powell, Payrolls on tap The dollar index and dollar index futures steadied in Asian trade on Tuesday, after seeing some volatility in recent sessions. While recent data showed some stickiness in U.S. inflation, traders appeared to have so far maintained their bets that the Fed will cut interest rates in June. But this trade is expected to be largely tested this week, with a two-day testimony from Fed Chair Jerome Powell- where analysts expect him to largely maintain his hawkish tilt. After that, key nonfarm payrolls data is due this Friday, and expected to offer more cues on the labor market. https://www.investing.com/news/forex-news/asia-fx-muted-as-chinas-economic-goals-underwhelm-dollar-steady-3323991

2024-03-05 02:25

Copyrighted Image by: Reuters. Investing.com -- Oil prices settled lower, as China-led worries about weaker crude demand continued to linger despite the world's largest crude importer unveiling ambitious growth plan. At 14:30 ET (19:30 GMT), the West Texas Intermediate crude futures fell 0.9% to settle at $78.02 per barrel, and the Brent oil futures expiring in May fell 0.7% to $82.83 a barrel. China keeps 5% GDP target for 2024, outlines economic reforms China set a gross domestic product target (GDP) of 5% for 2024, the same as the prior year. The target and other economic proposals were both unveiled in an official report released during the annual meeting of the country's National People’s Congress. While Beijing outlined more economic changes to help shore up growth, the government’s messaging was largely unchanged from its previous signals, providing investors with little cause for optimism over what has been a sluggish economic rebound in China. Weak private purchasing managers' index data released on Tuesday further dented sentiment. Concerns over China, coupled with uncertainty over the path of U.S. interest rates, have factored into anxiety over weaker oil demand so far this year. Fresh update on U.S. crude production eyed Following five-straight week of larger-than-expected increased in domestic crude supplies and ongoing concerns about growing non-OPEC global output, U.S. crude inventory data from the American Petroleum Institute due later Tuesday as well as a further report from EIA due Wednesday will likely be closely watched. The EIA is expected to report crude stockpiles fell by 2.6 million barrels for the week ended Mar. 1. Gaza ceasefire talk remains in play Meanwhile, growing calls from top U.S. officials for a ceasefire between Israel and Hamas saw markets pricing in a greater chance of a de-escalation in tensions in the Middle East. President Joe Biden has been pushing for an agreement to be reached by next week by the start of the Muslim holy month of Ramadan on March 10. Fears of supply disruptions stemming from geopolitical ructions in the Middle East have been a key point of support for oil prices in recent months, particularly as Israel and Hamas repeatedly rejected calls for a ceasefire. The war has also spilled over into the Red Sea, severely disrupting activity in the crucial shipping artery between Europe and Asia. https://www.investing.com/news/commodities-news/oil-prices-muted-as-china-growth-forecast-underwhelms-3323943

2024-03-05 01:29

Copyrighted Image by: Reuters Investing.com -- The price of Bitcoin cleared key levels in Asian trade on Tuesday, and were now less than $1,000 shy of a record high hit during the peak of a bull run in 2021. The world’s largest cryptocurrency had risen by 1.8% to $66,487 by 03:17 ET (08:17 GMT). Hours earlier it had surged by as much as 8.4% to an over two-year high of $68,450.9 -- within spitting distance of an all-time high of $68,999 reached in late-2021. Gains in Bitcoin were driven chiefly by steady capital inflows into the token, especially after the approval of several U.S. exchange-traded funds that directly track the token’s price. "When you open up ETF capital pools for a digital commodity with limited supply, the only price direction is up," analysts at Bernstein said in a note to clients. Its correlation with technology stocks also factored into the token’s recent gains, while markets awaited an upcoming halving in the rate at which new Bitcoin is generated- an event that is expected to tighten markets. Data from digital asset manager CoinShares showed Bitcoin-linked investment products saw a fifth straight week of capital inflows in the week to March 4, a total of $1.7 billion. While short positions on the token increased, U.S.-listed ETFs tracking Bitcoin, particularly offerings from BlackRock (NYSE:BLK) (NASDAQ:IBIT) and Fidelity (NYSE:FBTC), commanded the lion’s share of inflows. On the other hand, Grayscale (NYSE:GBTC) continued to see sustained outflows, as it grappled with increased competition in the Bitcoin ETF space. Sentiment towards Bitcoin was also boosted by Microstrategy (NASDAQ:MSTR), the largest corporate holder of the token, saying it will issue $600 million in debt to buy more Bitcoin. World no.2 crypto Ethereum touched a two-year high of $3,624.03, as focus also remained on the potential approval of a spot ETF for the token. Crypto-linked stocks also rallied on Wall Street on Monday. Still, crypto trading volumes, particularly in Bitcoin and Ethereum, have been relatively subdued. While Bitcoin has rallied more than 400% from lows hit in late-2022, retail interest in crypto has remained weak following several high-profile frauds and bankruptcies over the past two years. https://www.investing.com/news/cryptocurrency-news/bitcoin-clears-68000-now-within-spitting-distance-of-2021-record-3323932

2024-03-04 23:20

Copyrighted Image by: Reuters. Investing.com - The Canadian Dollar weakened against its U.S. counterpart today, as oil prices fell and rik sentiment remained uncertain ahead of key data this week. The economic docket is set to include a rate decision from the Bank of Canada and U.S. Nonfarm Payrolls (NFP) on Wednesday, and Canadian employment data due Friday. The BoC is widely expected to hold rates at 5%, and currently expectations are for an 80% chance that rate cuts begin at the BoC’s June meeting. Traders will be closely parsing commentary from policymakers and the accompanying press release for further guidance on when the BoC may begin to cut rates. A dovish tilt from the Bank of Canada could see further pressure on the loonie. Analysts at Interchange Financial note that “The BoC could be laying the groundwork for a potential interest rate cut by leaning slightly towards a dovish tone. This would weaken the Canadian dollar.” Interchange Financial analysts also note that the loonie could be particularly sensitive to the wording and tone of the BoC’s statement at a time that “The Canadian dollar and US dollar (USD/CAD) currency pairing continues to be heavily influenced by interest rate expectations.” U.S. ADP employment data on Wednesday will also be closely watched for expectations of rate cuts from the Fed. Traders currently see 70% odds of a Fed rate trim in June - more or less at par with the BoC. Canadian employment data meanwhile is expected to show an uptick in the employment rate, and the economy adding 20,000 jobs in February - at a slower pace than in January. On a technical level for the pair, analysts at FXStreet note, “The 1.3600 handle is the immediate near-term technical ceiling, and prices continue to trade on the high side of the 200-day Simple Moving Average (SMA) at 1.3477.” https://www.investing.com/news/forex-news/canadian-dolllar-weakens-vs-usd-ahead-of-potential-dovish-bank-of-canada-tilt-3323904

2024-03-04 21:03

Copyrighted Image by: Reuters Investing.com -- OPEC and its oil-producing allies' decision to extend production cuts may provide a short term boost to oil prices, but oil supply is still expected to outpace demand in the second quarter as crude demand remains subdued and U.S.-led non-OPEC supply continues to rise. "[T]he cut extension would still leave our global S&D balance in surplus in Q2," Macquarie said in a note, adding that the 2.2 million barrels per day of cuts delivered so far have shown "little effect" on aggregate OPEC supply. Russia and Saudi Arabia, who lead the Organization of the Petroleum Exporting Countries and its allies, or OPEC+, extended their output cuts of 2.2 million barrels per day until the end of June. Although the extension of cuts could provide additional momentum to an oil market showing signs of strength, Macquarie says tepid demand from refineries, which turn crude oil into products like gasoline, is expected to remain subdued through May ahead of a "material increase" in June. The extension of crude output cuts from more compliant members of the group including Kuwait and Algeria -- that tend to follow the production curbs more closely -- would provide an additional, yet "modest" degree of tightening, Macquarie added, but less compliant members will likely have a bigger role in supply and demand outlook in Q2. Output and compliance from this group "remain items to watch ahead of the next ministerial meeting, scheduled for June 1 in Vienna," it added. https://www.investing.com/news/commodities-news/opec-extends-cuts-but-macquarie-says-supply-still-set-to-outpace-demand-in-q2-3323757