Gold falls on U.S. fiscal and monetary uncertainty
Gold prices edged lower yesterday as a U.S. government shutdown loomed large in afternoon trading, which repelled investors away from risk-on assets.
The dollar, which normally moves inversely with gold, headed lower earlier, though investors continued to steer clear of the yellow metal and favored the dollar somewhat on sentiments that when fiscal woes subside, the Federal Reserve will be closer to dismantling monetary stimulus programs.
Gold futures were likely to find support at USD1,306.20 a troy ounce, Tuesday's low, and resistance at USD1,375.10, the high from Sept. 19.
The U.S. Congress must approve a spending package by the end of the day to avoid a government shutdown, and waning faith for a last-minute deal steered investors away the dollar as well as from gold and into other safe-haven assets such as the yen earlier.
Congressional Republicans and Democrats continued to spar over President Barack Obama's healthcare law, a bargaining chip to fund a spending package to keep the government running.
The dollar, which normally moves inversely with gold, headed lower earlier, though investors continued to steer clear of the yellow metal and favored the dollar somewhat on sentiments that when fiscal woes subside, the Federal Reserve will be closer to dismantling monetary stimulus programs.
Gold futures were likely to find support at USD1,306.20 a troy ounce, Tuesday's low, and resistance at USD1,375.10, the high from Sept. 19.
The U.S. Congress must approve a spending package by the end of the day to avoid a government shutdown, and waning faith for a last-minute deal steered investors away the dollar as well as from gold and into other safe-haven assets such as the yen earlier.
Congressional Republicans and Democrats continued to spar over President Barack Obama's healthcare law, a bargaining chip to fund a spending package to keep the government running.
Oil falls as U.S. politics limit risk appetite
Oil futures traded lower in the early part of Tuesday’s Asian session as traders backed away from riskier assets on fears of U.S. government shutdown.
On the New York Mercantile Exchange, light, sweet crude futures fell 0.08% to USD102.25 per barrel in Asian trading Tuesday. The November contract settled lower by 0.52% at USD102.33 per barrel on Monday.
Oil traders appeared to gloss over some decent U.S. data and focused more political haggling in the U.S. that could result in a government closure.
In U.S. economic news out Monday, the Federal Reserve Bank of Dallas reported earlier that its general business activity index increased to 12.8 in September from 5.0 in August, beating market calls for the index to remain unchanged.
On the New York Mercantile Exchange, light, sweet crude futures fell 0.08% to USD102.25 per barrel in Asian trading Tuesday. The November contract settled lower by 0.52% at USD102.33 per barrel on Monday.
Oil traders appeared to gloss over some decent U.S. data and focused more political haggling in the U.S. that could result in a government closure.
In U.S. economic news out Monday, the Federal Reserve Bank of Dallas reported earlier that its general business activity index increased to 12.8 in September from 5.0 in August, beating market calls for the index to remain unchanged.
Time
|
Cur.
|
Event
|
Actual
|
Forecast
|
Previous
|
Tuesday, October 1
| |||||
All Day
|
China - National Day
| ||||
6:30
|
CNY
|
Chinese Manufacturing PMI
|
51.1
|
51.5
|
51
|
10:30
|
INR
|
HSBC Markit Manufacturing PMI
|
48.5
| ||
13:28
|
EUR
|
Manufacturing PMI
|
51.1
|
51.1
| |
13:58
|
GBP
|
Manufacturing PMI
|
57.3
|
57.2
| |
14:30
|
EUR
|
Unemployment Rate
|
12.10%
|
12.10%
| |
18:25
|
USD
|
Redbook (MoM)
|
-0.40%
| ||
18:25
|
USD
|
Redbook (YoY)
|
3.60%
| ||
18:28
|
USD
|
Manufacturing PMI
|
52.8
|
52.8
| |
19:30
|
USD
|
Construction Spending (MoM)
|
0.40%
|
0.60%
| |
19:30
|
USD
|
ISM Manufacturing Index
|
55
|
55.7
| |
19:30
|
USD
|
ISM Manufacturing Prices
|
55
|
54
| |
21:00
|
USD
|
4-Week Bill Auction
|
0.02%
| ||
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