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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Gold prices fall to 6-week lows, below $1,200 mark-sapforex24

Gold prices fell to six-week lows on Friday, hovering below the psychologically important $1,200 mark as the strength of the U.S. dollar and growing expectations for a U.S. rate hike next week continued to weigh on the precious metal.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were down 0.61% at $1,195.65, the lowest since January 31.

The April contract ended Thursday’s session 0.51% lower at $1,203.20 an ounce.

 Comex Market Update-SapForex24

Futures were likely to find support at $1,187.10, the low of January 30 and resistance at $1,212.20, Wednesday’s high.

The greenback remained broadly supported after U.S. payroll processor ADP reported on Wednesday that the private sector added 298,000 jobs in February, well above forecasts for an increase of 190,000. It was the largest increase in private sector hiring since March 2006.

Investors were looking ahead to Friday’s government employment report for February, where a strong reading would cement expectations for a rate hike from the Fed next week.

Markets seemed to shrug off a report by the U.S. Department of Labor on Thursday showing that initial jobless claims increased by 20,000 to 243,000 last week, compared to expectations for a 12,000 rise.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 101.94, not far from Thursday’s one-week high of 102.25.

A strong U.S. dollar usually weighs on Gold, as it dampens the metal’s appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.

Elsewhere in metals trading, silver futures for May delivery dropped 0.81% to $16.877 a troy ounce, while copper futures for May delivery added 0.12% to $2.583 a pound.

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March rate hike bets push gold to 5-week lows-SapForex24

Gold prices dropped to a five-week low during European morning hours on Wednesday, as traders bet on a strong likelihood the Federal Reserve will raise rates at its upcoming policy meeting next week.

Comex Gold futures touched a session low of $1,212.50 a troy ounce, a level not seen since February 3. It was last at $1,213.15 by 8:10AM ET (13:10GMT), down $2.75, or about 0.2%.

Spot Gold was down $2.40 at $1,213.40 per ounce.
Markets dramatically adjusted expectations for U.S. interest rate hikes this year following hawkish comments from several top Fed officials last week, including Chair Janet Yellen.

Futures traders are pricing in around an 82% chance of a hike at the Fed’s March 14-15 meeting, according to Investing.com’s Fed Rate Monitor Tool.

Odds of a second rate hike in September currently stand at about 65%, while a third hike in December is priced in at 53%, aligning market expectations with the Fed’s current forecast for three rate hikes in 2017.

The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.

Investors are now awaiting Friday’s nonfarm payrolls report for further clues on the likely pace of hikes this year.

Ahead of the government report, payroll processing firm ADP is set to release data on February private sector payrolls at 8:15AM ET (13:15GMT).

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was slightly higher at 101.87 in New York morning trade. It reached a two-month high of 102.27 last week.

Treasury yields were also up, with the U.S. 10-Year bond at around 2.525%.

Also on the Comex, silver futures for May delivery slipped 8.0 cents, or around 0.5%, to $17.45 a troy ounce.

Meanwhile, platinum was down 0.4% to $957.70, while palladium dipped 0.8% to $768.75 an ounce.

Elsewhere in metals trading, copper futures added 0.2 cents, or less than 0.1%, to $2.621 a pound.

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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 starts the week higher amid North Korea missile test-SapForex24

Gold prices were higher during European morning hours on Monday, starting the week off with gains as demand for safe-haven assets was boosted amid news of North Korea’s firing of four ballistic missiles.

Comex Gold futures tacked on $6.95, or about 0.6%, to $1,233.45 a troy ounce . The precious metal fell to $1,223.00 on Friday, the lowest since February 15.

Spot gold was down $1.10 to $1,233.40 per ounce.

Market participants kept a wary eye on developments in North Korea, which fired four ballistic missiles early on Monday, three of which landed in Japan’s exclusive economic zone.

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Gold News-sapforex24

The news bolstered demand for perceived safe-havens such as the yen, U.S. Treasurys and gold.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 101.37 in London morning trade.

It reached a two-month high of 102.27 last week on increasing signs given by Federal Reserve officials that the U.S. central bank is seriously considering raising interest rates this month.

Fed Chair Janet Yellen said on Friday that it “would be appropriate” for the U.S. central bank to raise its benchmark interest rate at its next meeting on March 14-15, should the U.S. economy continue to show robust growth in terms of jobs and inflation.

In the week ahead, global financial markets will focus on the monthly U.S. employment report due Friday, which could seal the deal for a Fed rate hike later this month.

Besides the employment report, this week’s calendar also features U.S. data on factory orders, trade figures, ADP private sector nonfarm payrolls, weekly jobless claims and import prices.

Futures traders are pricing in around an 82% chance of a hike at the Fed’s March 14-15 meeting, according to Investing.com’s Fed Rate Monitor Tool.

The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.

Also on the Comex, silver futures for May delivery tacked on 12.2 cents, or 0.7%, to $17.86 a troy ounce.

Meanwhile, platinum was down 0.2% to $991.75, while palladium added 0.6% to $775.52 an ounce.
Elsewhere in metals trading, copper futures lost 2.7 cents, or about 1%, to $2.669 a pound after China cut its economic growth forecast to around 6.5% in 2017, compared with last year’s goal of 6.5% to 7%.

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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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Dollar hits two-week high vs yen on U.S.-Japan summit relief

The dollar rose to a two-week high versus the yen on Monday, with the market breathing a sigh of relief as the closely watched two-day U.S.-Japan summit held over the weekend was seen to have ended smoothly.

U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe appeared to have established a quick friendship through a hug, a prolonged handshake and rounds of golf, allaying investor fears of the meeting ending acrimoniously with Trump talking tough on trade, currency and security issues.

The dollar index against a basket of major currencies was up 0.15 percent at 100.930 (DXY), close to a near two-week high of 101.010 reached on Friday when pledges of “phenomenal” tax reforms by Trump had boosted the greenback.
The dollar was up 0.65 percent at 113.920 yen , briefly touching 114.170, the highest since Jan. 30.

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    Forex market news today-Sap Forex24

“There is relief that the summit ended without confrontation, and that the joint statement did not directly touch upon currency issues,” said Masafumi Yamamoto, chief forex strategist at Mizuho Securities.

There was concern prior to the summit that Trump would reiterate accusations that Japan was one of several countries devaluing their currencies to the disadvantage of the United States.

“While the outcome of the U.S.-Japan summit itself is not a huge dollar boosting factor, the currency continues to receive firm support from expectations towards Trump’s ‘phenomenal’ tax plans,” Yamamoto said.

Trump said his administration would be announcing “something phenomenal in terms of tax” over “the next two or three weeks” during a meeting with airline executives on Thursday.

The president’s comments increased risk appetite, sending Wall Street shares to record highs on Friday, in turn lifting U.S. Treasury yields from multi-week lows to the dollar’s advantage.

The market’s near-term focus was on Federal Reserve Chair Janet Yellen’s congressional testimony scheduled for Tuesday and Wednesday. Investors are keen to gauge Yellen’s policy stance after the central bank upgraded its inflation views earlier this month.

“Trump has just taken a positive approach to tax reforms and infrastructure spending. It remains to be seen if this has any impact on Yellen, as the Trump administration’s lack of policy clarity seemed like a factor that made the Fed hesitant to raise rates,” said Koji Fukaya, president at FPG Securities.

U.S. indicators being awaited for their potential market impact included the January producer price index (PPI) on Tuesday, the January consumer price index (CPI) and retail sales on Wednesday and housing-related data on Thursday.

The euro was down 0.2 percent at $1.0621 , dipping close to Friday’s 3-1/2-week low of $1.0608.

The common currency fell 1.3 percent last week, its biggest weekly loss in three months, as political risks rose on the back of election concerns in countries such as France and Germany. Resurfacing Greek debt woes further hurt confidence towards the euro zone.

Elsewhere, the New Zealand dollar inched up 0.1 percent to $0.7203 . It continued to edge away from a 2-1/2-week low of $0.7172 struck Thursday after the Reserve Bank of New Zealand (RBNZ) signaled that it would keep interest rates at record lows for two years.

“The RBNZ has clearly knocked the New Zealand dollar lower. However, we still find it difficult to get overly bearish given a still solid economic picture,” wrote Philip Borkin, senior economist at ANZ.

The Australian dollar was little changed at $0.7671 after surging 0.7 percent on Friday on upbeat Chinese trade data and an optimistic economic view given by the Reserve Bank of Australia. A rise above $0.7696 would take the Aussie to a three-month high.

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