Gold dips on FOMC, Japanese data
Gold prices dropped slightly in Asian trading on Thursday as investors priced in a complacent Federal Reserve and poor Japanese economic data, which stoked demand for the safe-haven dollar.
Gold futures were likely to test support at USD1,658.25 a troy ounce, the low from January 27, and resistance at USD1,692.35, the high on January 21.
On Wednesday, the Federal Reserve's Open Market Committee (FOMC) released the decision from its two day meeting. The FOMC decided not to change its monetary policy in any way, keeping interest rates near 0% while continuing to buy roughly $85 billion worth of securities each month.
With the U.S. economy showing signs of contraction, the Fed's decision not to pursue even more accommodative policy might have been interpreted as negative by the gold market.
Elsewhere, in Japan, economic data indicated that the Japanese economic recovery may be faltering. Japan's industrial production increased only 2.5%, less than the 4.5% economists had been anticipating.
Recent economic data from Japan has shown that the economy may be slowing; coupled with Thursday's industrial production number, the island nation's economy appears to be struggling.
Gold futures were likely to test support at USD1,658.25 a troy ounce, the low from January 27, and resistance at USD1,692.35, the high on January 21.
On Wednesday, the Federal Reserve's Open Market Committee (FOMC) released the decision from its two day meeting. The FOMC decided not to change its monetary policy in any way, keeping interest rates near 0% while continuing to buy roughly $85 billion worth of securities each month.
With the U.S. economy showing signs of contraction, the Fed's decision not to pursue even more accommodative policy might have been interpreted as negative by the gold market.
Elsewhere, in Japan, economic data indicated that the Japanese economic recovery may be faltering. Japan's industrial production increased only 2.5%, less than the 4.5% economists had been anticipating.
Recent economic data from Japan has shown that the economy may be slowing; coupled with Thursday's industrial production number, the island nation's economy appears to be struggling.
Oil near flat as US economy contracts
Crude oil was largely unchanged in Asian trading on Thursday as investors priced in a weakening U.S. economy with continued monetary expansion.
Natural gas prices gain on bottom fishing
Natural gas futures rose on Wednesday after the market viewed the commodity as oversold.
Forecasts for warmer temperatures to return to the central and northeastern portions of the country sent prices plunging in recent sessions.
Forecasts for warmer temperatures to return to the central and northeastern portions of the country sent prices plunging in recent sessions.
No comments:
Post a Comment