Gold dips but holds firm on talk Fed to keep monetary policy loose
Gold prices moved lower but remained firm on expectations for the Federal Reserve to keep asset-purchasing programs in place to offset any drag a recent fiscal showdown that closed the government and nearly threw the country into default may have on recovery.
Stimulus tools often weaken the dollar to drive recovery, making gold an attractive hedge.
While markets breathed a sigh of relief after the U.S. Congress passed a bill to reopen the government and raise the debt ceiling this week, expectations continued to persist that the Federal Reserve may delay plans to taper its stimulus program until early 2014.
The Fed is currently buying USD85 billion in Treasury holdings and mortgage debt a month to boost the economy, a monetary policy tool known as quantitative easing that drives down interest rates to spur recovery, weakening the dollar and making gold an attractive hedge in the process.
Stimulus tools often weaken the dollar to drive recovery, making gold an attractive hedge.
While markets breathed a sigh of relief after the U.S. Congress passed a bill to reopen the government and raise the debt ceiling this week, expectations continued to persist that the Federal Reserve may delay plans to taper its stimulus program until early 2014.
The Fed is currently buying USD85 billion in Treasury holdings and mortgage debt a month to boost the economy, a monetary policy tool known as quantitative easing that drives down interest rates to spur recovery, weakening the dollar and making gold an attractive hedge in the process.
Crude prices jump on solid Chinese growth figures
Oil prices jumped up on Friday after China's quarterly gross domestic product figure met market expectations and boosted hopes for demand in the world's second-largest economy to remain firm.
Official data showed that China's gross domestic product grew by 7.8% in the third quarter, in line with expectations and up from 7.5% in the three months to June.
The data eased concerns over the strength of the recovery in the world's second-largest economy, which boosted oil prices.
Oil also support on expectations for the Federal Reserve to keep its monthly USD85 billion bond-buying program in place into 2014 to offset any effects the recent fiscal showdown may have on recovery.
Official data showed that China's gross domestic product grew by 7.8% in the third quarter, in line with expectations and up from 7.5% in the three months to June.
The data eased concerns over the strength of the recovery in the world's second-largest economy, which boosted oil prices.
Oil also support on expectations for the Federal Reserve to keep its monthly USD85 billion bond-buying program in place into 2014 to offset any effects the recent fiscal showdown may have on recovery.
Natural gas falls on expectations for rising supplies
Natural gas prices fell on Friday amid concerns mild weather may have hampered demand over the past two weeks and left the country's stockpiles high.
A government shutdown left markets without weekly supply data, prompting investors to sell and await fresh market-moving data, though concerns persisted that the next report due out next week will be bearish.
Updated weather models continued to call for below-normal temperatures to hover over portions of the central and eastern U.S. in late October, though chilly forecasts were already priced into trading.
Concerns fall's mild temperatures have crimped demand sent prices falling.
Demand for natural gas tends to fall at the country's thermal power plants as temperatures moderate, as homes and businesses rely less on heating or air conditioning.
A government shutdown left markets without weekly supply data, prompting investors to sell and await fresh market-moving data, though concerns persisted that the next report due out next week will be bearish.
Updated weather models continued to call for below-normal temperatures to hover over portions of the central and eastern U.S. in late October, though chilly forecasts were already priced into trading.
Concerns fall's mild temperatures have crimped demand sent prices falling.
Demand for natural gas tends to fall at the country's thermal power plants as temperatures moderate, as homes and businesses rely less on heating or air conditioning.
Economic Events:
Time
|
Cur.
|
Event
|
Forecast
|
Previous
|
17:30
|
USD
|
Chicago Fed President Evans Speaks
| ||
18:00
|
USD
|
Chicago Fed National Activity
|
0.14
| |
19:30
|
USD
|
Existing Home Sales
|
5.32M
|
5.48M
|
19:30
|
USD
|
Existing Home Sales (MoM)
|
-2.50%
|
1.70%
|
20:00
|
USD
|
Crude Oil Inventories
|
2.164M
|
6.807M
|
20:00
|
USD
|
EIA Weekly Distillates Stocks
|
-1.564M
|
-3.141M
|
20:00
|
USD
|
Gasoline Inventories
|
0.107M
|
0.149M
|
21:00
|
USD
|
3-Month Bill Auction
|
0.13%
| |
21:00
|
USD
|
6-Month Bill Auction
|
0.15%
| |
No comments:
Post a Comment