Gold hits fresh 3-week highs amid Trump policy jitters-SapForex24

Gold prices rose to a three-week high during European morning hours on Wednesday, as growing doubts about U.S. President Donald Trump’s pro-growth economic agenda prompted investors to dump risky assets and rush to safe havens.

Comex Gold futures reached a session peak of $1,249.05 a troy ounce, the highest since February 28. It was last at $1,247.00 , up 50 cents, or less than 0.1%.

It settled higher for the fourth session in a row on Tuesday, as risk-averse investors sought safer investments amid a weak dollar and as U.S. equities tumbled on doubts over the implementation of President Trump’s economic agenda.
Meanwhile, spot gold was up $3.95 at $1,248.55 per ounce.

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Headlines from Washington will continue to be in focus, as House Republicans are expected to vote on repealing and replacing the Affordable Care Act on Thursday.
The Freedom Caucus, a key group of House Republicans, threatened to issue a formal statement of opposition to the Obamacare replacement bill, which would delay the vote, unless the language in the bill changes dramatically.

Appetite for riskier assets took a hit on concerns the House will not have enough votes to repeal and replace the healthcare bill, triggering worry that more of the Trump Administration’s pro-growth policies could be delayed or derailed in Congress.

Global stock markets sold off as investors unwound bets from a post-election rally on worries that Trump would not be able to live up to his promises for large-scale reform on tax and regulation.

Meanwhile, the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed near a seven-week low of 99.53 in London morning trade.

U.S. Treasury yields traded lower, with the benchmark 10-year note yield falling to a three-week low of 2.405%.

The greenback, along with Treasury yields, have been on the retreat since the Fed raised interest rates on Wednesday last week, but stuck to its outlook for two more hikes this year, instead of three expected by the market.

The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.
A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.

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Forex – Dollar steady amid Fed rate hike optimism- SapForex24

The dollar was steady against a basket of the other major currencies on Tuesday as investors remained confident that the Federal Reserve will hike interest rates at next week’s meeting while they awaited Friday’s U.S. jobs report.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 101.64 at 08.49 GMT, holding above Monday’s one-week low of 101.22.

A rate hike at the Fed’s March 14-15 meeting is seen as a near certainty after Fed Chair Janet Yellen said last week that a rate hike “would likely be appropriate” this month if employment and inflation continued to evolve in line with expectations.

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Futures traders are pricing in around an 86% chance of a hike at the Fed’s next meeting, according to Investing.com’s Fed Rate Monitor Tool.

The dollar was steady against the yen, with USD/JPY at 113.83, after falling to a one-week low of 113.54 on Monday as rising geopolitical tensions in the wake of a North Korean missile test spurred safe haven demand for the Japanese currency.

The euro edged higher, with EUR/USD inching up 0.1% to 1.0591, still shy of Monday’s two-week highs of 1.0639.

Investors were continuing to monitor developments in the French presidential election campaign after scandal-hit Francois Fillon won his party’s backing to be its candidate after former French Prime Minister Alain Juppe ruled himself out of the race.

Outgoing President Francois Hollande was warned that far-right candidate Marine Le Pen could win the election and vowed to “do everything” in his power to stop it happening.

Investors’ fears that a victory for anti-EU Le Pen could potentially trigger a French exit from the euro zone.

The euro showed little reaction to data showing that German factory orders fell at the fastest rate in eight years in January, slumping 7.4%.

Sterling was weaker against the dollar, with GBP/USD down 0.21% to 1.2211.

Meanwhile, the Australian dollar was higher after the country’s central bank kept interest rates on hold on Tuesday and gave no indications that it is considering further easing.

AUD/USD was up 0.29% to 0.7602 after initially rising as high of 0.7633.

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Gold steady near 3-1/2-month high as markets await Trump, Yellen-SAPFOREX24

Gold prices were little changed near a three-and-a-half-month high during European morning hours on Monday, as market players looked ahead to U.S. President Donald Trump’s address to Congress on Tuesday for further details on his promises of tax reform, deregulation and infrastructure spending.

Comex gold futures dipped $1.35, or about 0.1%, to $1,256.85 a troy ounce by 3:05AM ET (08:05GMT), just shy of the prior session’s high of $1,261.20, a level not seen since November 10. Spot gold was steady at $1,256.10 per ounce.

President Donald Trump will make his first major address to Congress on Tuesday. Investors are hopeful he will shed light on his economic agenda, most notably tax reform.

GOLD NEWS-COMEX MARKET UPDATE-SAPFOREX24
GOLD NEWS-COMEX MARKET UPDATE-SAPFOREX24

Beyond tax reform, investors will be eager to learn more about Trump’s plans for repealing the Affordable Care Act, reducing regulations on businesses and increasing infrastructure spending.

Analysts warned that market sentiment could take a hit if Trump’s plans look slow to execute or are overly vague.

President Trump has been credited with being a major catalyst behind the stock market’s impressive rally in recent weeks, although he has yet to outline his economic policies in detail.

This week is also peppered with a handful of Fed appearances, most importantly Fed Chair Janet Yellen on Friday, as investors look for further insight on interest rate hikes ahead of the central bank’s March meeting.

In addition, market players will keep an eye out on a revised reading of fourth-quarter U.S. growth data on Tuesday to gauge the strength of the economy.

Besides the GDP report, this week’s calendar also features U.S. data on durable goods orders on Monday, consumer confidence on Tuesday, personal consumption expenditures and ISM manufacturing on Wednesday, weekly jobless claims on Thursday followed by the ISM non-manufacturing survey on Friday.

A recent string of solid data reinforced the view that the U.S. economy is sufficiently robust to warrant higher interest rates in the months ahead.

Last week, minutes from the Fed’s latest meeting showed policymakers thought it may be appropriate to raise interest rates again “fairly soon”, although it gave no firm signal on the timing of its next rate move.

Fed fund futures priced in about a 25% chance of a rate hike in March, according to Investing.com’s Fed Rate Monitor Tool. Odds of a May increase was seen at 52%, while June odds were at around 70%.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 101.05 in London morning trade, not far from Friday’s one-week low of 100.64.

Treasury yields were little changed after falling to a five-week low of 2.31% on Friday, with the U.S. 10-Year bond at around 2.338%.

Also on the Comex, silver futures for May delivery tacked on 1.6 cents, or about 0.1%, to $18.42 a troy ounce after reaching $18.46 earlier, the highest since November 11.

Meanwhile, platinum was up 0.3% to $1,031.70, while palladium was flat at $773.10 an ounce.

Elsewhere in metals trading, copper futures lost 1.1 cents, or about 0.4%, to $2.685 a pound.

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Forex – Dollar higher as political uncertainty sinks euro | SAPFOREX24

The dollar climbed against a currency basket on Tuesday, boosted by the weaker euro as concerns over political uncertainty pressured the single currency lower.
EUR/USD hit more than one-week lows of 1.0662 and was last at 1.0663, down 0.77% for the day.

Sentiment on the euro was hit by concerns over the possibility of a Brexit or Trump-style shock result in France’s upcoming presidential election this spring.

Marine Le Pen, head of the far-right National Front party, launched her presidential bid on Sunday with promises to exit the euro zone and protect France against globalization.

FOREX MARKET NEWS TODAY-SAPFOREX24
FOREX MARKET NEWS TODAY-SAPFOREX24

Worries over Greece’s bailout and a narrowing of opinion polls in Germany also added to investor jitters.

The single currency came under additional selling pressure after European Central Bank President Mario Draghi on Monday downplayed calls for the bank to scale back its stimulus program.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, climbed 0.78% to 100.62.

Against the yen the dollar was higher, with USD/JPY adding 0.46% to 112.23, pulling back from overnight lows of 111.58, the weakest since November 29.
The dollar has weakened against the safe haven yen amid a lack of clarity on U.S. President Donald Trump’s economic policies.

Sterling was lower, with GBP/USD down 0.82% at 1.2367 as parliamentary debate on a law giving Prime Minister Theresa May the right to trigger Brexit was set to continue for a second day.

Meanwhile, the Australian dollar was lower, with AUD/USD falling 0.44% to 0.7624.

The Reserve Bank of Australia held interest rates steady at its first policy meeting of 2017 on Tuesday and said a recent soft patch in growth was temporary and would not prevent a healthy pickup over time.

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