2024-01-05 05:04

Copyrighted Image by: Reuters. Investing.com-- Gold prices moved little in Asian trade on Friday after sinking below key levels this week following a sharp rebound in the dollar, with focus now squarely on key U.S. labor market data for more cues on interest rate cuts in 2024. The yellow metal was nursing some losses for the week following a strong melt-up towards the end of 2023. But the rally failed to sustain amid profit-taking and growing uncertainty over the Federal Reserve’s plans for interest rate cuts this year. Markets slightly scaled back bets that rate cuts could begin by as soon as March 2024, after the minutes of the Fed’s December meeting offered few cues on when the bank planned to begin trimming rates. This trend spurred sharp gains in the dollar, with the greenback headed for an over 1% weekly gain- its best since July 2023. Spot gold rose 0.1% to $2,045.41 an ounce, while gold futures rose 0.1% to $2,052.05 an ounce by 23:25 ET (03:25 GMT). Both instruments were down between 0.8% to 1% this week. Nonfarm payrolls awaited as markets trim early rate cut bets Markets were now focused squarely on nonfarm payrolls data for December, due later on Friday. The reading is expected to show more cooling in the labor market, although whether traders remained on edge over unexpected strength after stronger-than-expected weekly jobless claims and private payrolls data released earlier this week. A cooling labor market and weaker inflation are the two key factors being considered by the Fed in trimming rates. While the two have cooled substantially in recent months, traders remained uncertain whether that would be enough to spur aggressive monetary easing by the Fed. The CME Fedwatch tool showed that traders scaled back bets on a 25 basis point cut in March 2024- to a 62% chance from a 72% chance seen a week ago. This notion triggered sharp gains in the dollar, and spurred some pullback in gold. Still, the yellow metal was sitting on a strong melt-up through late-2023, and has now held above the $2,000 an ounce level for over a month. Easing interest rates are expected to benefit bullion prices this year, given that high rates push up the opportunity cost of buying into gold. Copper prices head for weekly losses amid dollar strength, weak PMIs Among industrial metals, copper prices were set for weekly losses amid some profit-taking after an end-2023 rally. Copper futures expiring March fell 0.1% to $3.8487 a pound, and were down about 1.1% this week. Prices of the red metal were hit by a string of weak purchasing managers index readings from across the globe, which showed a sustained decline in manufacturing activity in several major economies, such as the U.S.. Weak PMI readings from China were also a key weight on copper, as official data showed the country’s manufacturing sector fell further into contraction in December. China is the world’s largest copper importer, with a sluggish economic recovery in the country ramping up concerns over a copper demand slowdown. https://www.investing.com/news/commodities-news/gold-steadies-below-2050-as-markets-await-nonfarm-payrolls-report-3267759

2024-01-05 04:18

Copyrighted Image by: Reuters Investing.com-- Most Asian currencies moved in a flat-to-low range on Friday, while the dollar hovered near three-week highs as markets awaited key U.S. labor data for more cues on the Federal Reserve’s plans for interest rate cuts. Regional currencies were set for steep losses in the first week of 2024, as the dollar rebounded sharply amid growing uncertainty over exactly when the Fed plans to begin trimming interest rates. Traders were seen scaling back expectations that the Fed could begin cutting rates by as soon as March 2024, while the full scope of the potential cuts also remained unclear. Asia FX heads for weekly losses as late-2023 recovery stalls The rate-sensitive Japanese yen was among the worst-hit by this uncertainty, with the currency set to lose nearly 3% this week after a series of steep losses. The yen was at its weakest level in more than three weeks, as sentiment towards Japan was also dented by a devastating earthquake in the country. Other Asian currencies were also set for steep weekly losses, as traders largely unwound a rebound in the sector through late-2023. The Chinese yuan fell 0.1% on Friday and was set to lose nearly 1% this week, as sentiment towards China remained largely negative. The yuan was among the worst-performing Asian currencies in 2023, as a Chinese economic rebound failed to materialize. Still, more weakness in the yuan was held back by a series of stronger daily midpoint fixes by the People’s Bank of China. The South Korean won was flat on Friday, and was set to lose 1.5% this week, while the Australian dollar also tread water and was headed for a 1.6% weekly loss. The Indian rupee hovered near record lows before the release of government estimates for gross domestic product in 2024. A Reuters poll expects the government to forecast growth at over 7%, given that the Indian economy is among the best-performing major global economies. Dollar near three-week high amid pre-payrolls angst The dollar index and dollar index futures moved little on Friday, but remained close to their highest levels since mid-December. The two were also set to add about 1.1% this week- their best week since July 2023. The greenback shot up this week as traders sought more conviction that the Fed will begin cutting interest rates early in 2024. The CME Fedwatch tool saw traders lower their expectations for a March 2024 rate cut to 62% from 72% seen a week earlier. Focus was now squarely on key nonfarm payrolls data for December, due later in the day. While the reading is expected to show more cooling in the labor market, traders remained on edge over any signs of unexpected strength, given that the U.S. labor market ran hot through most of 2023. A cooling labor sector is among the key considerations for the Fed to begin trimming rates, along with inflation. But while the two factors have seen considerable cooling in recent months, traders were uncertain whether the trend would be enough to spur aggressive rate cuts by the central bank in 2024. Asia currencies logged a muted performance in 2023, amid pressure from high U.S. interest rates. But this trend may change later in 2024, as the Fed begins trimming rates. https://www.investing.com/news/forex-news/asia-fx-set-for-weekly-losses-dollar-strong-ahead-of-payrolls-reading-3267755

2024-01-05 01:25

Copyrighted Image by: Reuters. Investing.com -- Oil prices rose Friday, boosted by signs of underlying strength in the U.S. economy as well as the potential for supply disruptions in the crucial Middle East region. By 09:15 ET (14.15 GMT), the U.S. crude futures traded 1.9% higher at $73.64 a barrel and the Brent contract climbed 1.5% to $78.78 a barrel. Jobs data points to healthy U.S. economy Data released earlier Friday showed that the U.S. economy added far more jobs than expected in December, as nonfarm payrolls increased by 216,000 last month, rising from a downwardly revised mark of 173,000 in November. While this strong number has resulted in the tempering of expectations for the Federal Reserve to start cutting interest rates in March, it still suggests that the underlying U.S. economy, the largest in the world and biggest consumer of crude, remains healthy despite the series of interest rate hikes last year to tame inflation. Maersk diverts ships away from Red Sea Also supporting the crude market are the ongoing concerns over Yemen's Iran-backed Houthis targeting shipping in the Red Sea, disrupting supply from this crucial oil-rich region. Shipping giant Maersk said, in a statement Friday, that it would divert its vessels away from the Red Sea region for the "foreseeable future", with the world's second-largest shipper calling the situation in the area -- a crucial trade artery between Europe and Asia -- "highly volatile." U.S. oil product inventories rise sharply While these disruptions to Middle East supplies drove a recovery in crude this week, the rebound was limited by data showing a massive build in U.S. oil product inventories in the final week of 2023. The reading indicated that demand remained weak in the world’s largest fuel consumer. “This week’s EIA release showed U.S. commercial crude oil inventories down by 5.5MMbbls over the week, although there were large builds on the product side. Gasoline inventories increased by 10.9MMbbls and distillate stocks grew by 10.09MMbbls,” analysts at ING said, in a note. A rebound in the dollar also weighed on oil prices, as the greenback raced to over three-week highs on growing uncertainty over the Federal Reserve’s plans for interest rate cuts. https://www.investing.com/news/commodities-news/oil-prices-rise-as-middle-east-disruptions-persist-us-payrolls-awaited-3267741

2024-01-04 13:06

Sphere 3D Corp. (ANY) is providing the results of its Bitcoin mining operation for December 2023. Key Highlights: *Unaudited 1 - Includes Sphere 3D assets temporarily custodied by Gryphon related to the terminated master services agreement. CEO Comments "What a year it has been as we end 2023 on a high note! We brought over 1.3 EH/s online, cancelled our master services agreement with Gryphon Digital Mining, Inc ("Gryphon") which we expect to result in an additional 22.5% to our margins, and came to an agreement with Core Scientific, Inc ("Core Scientific") on a complex litigation. In December 2023, we mined 73.5 Bitcoin, representing a 311% increase year-over-year and a 3% increase from November 2023. One of our hosting sites was down for a significant period (51% uptime in December) and we are working with our hosting partner to improve its uptime. The Core Scientific settlement provides us with expected additional capital of $10 million that is non-dilutive to our shareholders. We plan to allocate the new capital to growth that will increase our EH/s. We believe we are well positioned for take-off in 2024!" Core Scientific Update On December 21, 2023, Sphere 3D agreed to terms outlining a settlement with Core Scientific and its debtor affiliates, subject to the approval of the United States Bankruptcy Court for the Southern District of Texas (the "Bankruptcy Court"). The terms of the settlement include the following: The Plan currently contemplates that General Unsecured Creditors such as Sphere 3D will receive equity of reorganized Core Scientific, which equity is expected to freely trade after the effective date of the Plan. The settlement terms provide Sphere 3D with non-dilutive capital to focus on its strategic growth, while realizing significant savings on litigation expenses. The terms of settlement expressly does not waive any claim Sphere 3D has against Gryphon Digital Mining. Sphere 3D is seeking recovery from Gryphon for damages in connection with Gryphon's failure to file a timely proof of claim in the Core Scientific bankruptcy proceeding before the deadline. Core Scientific previously argued that Gryphon's failure to file the proof of claim before the passage of the bar date was a defense to Sphere 3D's proof of claim against Core Scientific. Gryphon Update As previously disclosed, on October 6, 2023, Sphere 3D terminated, effective immediately, the Master Services Agreement ("MSA") between Sphere 3D and Gryphon, dated August 10, 2021, as amended on December 29, 2021. The termination of the MSA is expected to result in an additional 22.5% in gross profit. In November 2023, Gryphon indicated, through its counsel, that upon receipt of certain information it would be remitting outstanding proceeds, less fees and expenses, generated under the MSA that Sphere 3D asserts is currently held by Gryphon on behalf of Sphere 3D, which Sphere 3D believes amounts to approximately 21.6 bitcoin, or $919,377, at December 31, 2023, before factoring in fees and expenses. Sphere believes that Gryphon has received the information mentioned in the prior sentence; Gryphon, however, has yet to return the funds. Sphere 3D hopes that Gryphon will remit the proceeds soon, but Sphere 3D is exploring its regulatory and legal options. Havening Update Sphere 3D has anticipated the havening and is preparing accordingly. We are focusing on various alternatives and considering all options for growth, including, but not limited to, adding exahash organically, mergers and acquisitions, as well as other options. Sphere 3D is currently focused on strategic opportunities and on maintaining operational efficiency. https://www.investing.com/news/cryptocurrency-news/sphere-3d-provides-december-2023-production-and-operation-updates-432SI-3267305

2024-01-04 12:01

Copyrighted Image by: Reuters Investing.com -- Bitcoin rose on Thursday, erasing losses registered earlier in the session. By 10:19 ET (15:20 GMT), Bitcoin had gained 3.90% to $43,874.4. The world's most well-known cryptocurrency had dropped sharply on Wednesday, dragging its value down by as much as 7% from the year's high of $45,922 reached on Jan. 2. Analysts at AllianceBernstein (NYSE:AB) said the coin's correction stemmed from a report from independent crypto trading firm Matrixport regarding the potential approval of a Bitcoin spot ETF by the U.S. Securities and Exchange Commission (SEC). In a note, Matrixport Head of Research Markus Thielen argued that the ETF applications will likely be denied because they fall short of a "critical requirement." Thielen added that SEC Chair Gary Gensler is "not embracing crypto in the U.S., and it might even be a very long shot to expect that he would vote to approve Bitcoin spot ETFs." According to Reuters, the SEC has a January 10 deadline to approve or reject a spot ETF application from Ark and 21 Shares. The ruling could set the precedent for a host of current ETF applications from several other fund managers for a similar product, including one from the world's largest asset manager, BlackRock (NYSE:BLK). Goldman Sachs is also in talks to be an authorized participant for the potential spot Bitcoin ETF funds of both BlackRock and Grayscale, CoinDesk reported on Wednesday. Speculation that the bids would get the green light from SEC partly fueled a more than 100% surge in Bitcoin in 2023. Proponents argue that the approval of a spot ETF will spur a deluge of capital inflows for Bitcoin, given that the product allows traders to invest in the token without directly holding cryptocurrency. Analysts have cautioned that the approval may not trigger as large a bull run as expected, particularly in the wake of a string of recent scandals that have dented retail investors' interest in the crypto industry. Meanwhile, elevated interest rates have also limited the amount of capital flowing into crypto. The SEC has repeatedly rejected applications for a spot bitcoin ETF over the past two years, citing concerns that the token’s decentralized and volatile nature will prevent fund managers from protecting investors against market manipulation. Currently, all U.S.-traded bitcoin ETFs track the futures of the token, which are traded on the Chicago Mercantile Exchange. "We continue to maintain that all price dips to the ETF are market opportunities to buy Bitcoin/Bitcoin miners, and the market will likely bounce materially off the actual approval event," the AllianceBernstein analysts said. https://www.investing.com/news/cryptocurrency-news/bitcoin-slips-extending-recent-decline-from-2024-high-3267118

2024-01-04 11:32

Ault Alliance, Inc. (NYSE American: AULT), a diversified holding company (“Ault Alliance,” or the “Company”), announced today that its wholly owned subsidiary, Sentinum, Inc. (“Sentinum”) mined approximately 151 Bitcoin in December 2023. Of this total, approximately 77 Bitcoin were mined at Sentinum’s data center in Michigan, with the remaining approximately 74 Bitcoin from mining machines hosted with Core Scientific, Inc. (“Core”). The December 2023 mining run rate of approximately $6.5 million marks the highest single monthly run rate for Bitcoin miners in the Company’s history. The December mining operations represent a current Bitcoin mining operations annual run rate of approximately $78 million worth of Bitcoin. The mining run rate is based upon a current Bitcoin price of approximately $43,000. William B. Horne, Chief Executive Officer of Ault Alliance, stated, “Reaching this milestone represents a significant stride forward for the Company. We are immensely satisfied with the progress and overall performance of our mining operations, particularly those of Sentinum. We believe that Sentinum is in an excellent position to sustain its track record of producing impressive monthly revenues. This is largely due to our ongoing efforts to streamline operations and the upcoming transfer of some of our mining rigs hosted by Core to our Montana site. It is important to recognize that we believe that the current trading price of our stock does not fully capture the intrinsic value that Sentinum adds to our company.” Ault Alliance notes that all estimates and other projections are subject to the volatility in Bitcoin market price, the fluctuation in the mining difficulty level, the ability to build out and provide the necessary power for miners, and other factors that may impact the results of Bitcoin mining production or operations. For more information on Ault Alliance and its subsidiaries, Ault Alliance recommends that stockholders, investors, and any other interested parties read Ault Alliance’s public filings and press releases available under the Investor Relations section at www.Ault.com or at www.sec.gov. https://www.investing.com/news/cryptocurrency-news/ault-alliances-sentinum-reports-151-bitcoin-mined-in-december-2023-432SI-3267054