Gold futures little changed in quiet trade; U.S., China data eyed
Gold futures were little changed during European morning hours on Thursday, holding near a two-week high hit earlier in the week as investors took to the sidelines ahead of the release of key Chinese economic data.
Sentiment on precious metal remained upbeat amid indications the Federal Reserve intended to continue its quantitative easing program.
Market players looked ahead to data from China on fourth quarter gross domestic product for signs of a recovery in the world’s second-largest economy.
The Asian nation is also set to release reports on industrial production and retail sales.
Weaker-than-expected data could prompt policymakers in Beijing to introduce fresh stimulus measures to boost economic activity.
Gold traders were also looking ahead to U.S. economic data later in the day. The country was to produce official data on building permits and housing starts, in addition to the weekly government report on initial jobless claims and data on manufacturing activity in Philadelphia.
Sentiment on precious metal was underpinned after Federal Reserve Chairman Ben Bernanke indicated earlier in the week that the central bank intended to continue its quantitative easing program, clearing some confusion caused by the most recent Fed meeting minutes.
Gold futures tumbled to a four-month low on January 4 after the minutes from the central bank’s December meeting indicated that it could end its bond-buying program earlier-than-expected.
The Fed’s QE program is viewed by many investors as a major source of liquidity that weakens the U.S. dollar and helps support prices of commodities and other hard assets, including gold.
Focus was expected to remain on the U.S. economy, amid growing uncertainty over how the country will tackle the USD16.4 trillion debt ceiling that it reaches in February.
Republicans lawmakers have stated they will demand major spending cuts in exchange for any agreement to raise the debt limit, however President Barack Obama said he won't negotiate on the issue.
Failing to raise the debt ceiling could lead to a first-ever U.S. default that could roil financial markets.
Expectations for more aggressive stimulus measures by the Bank of Japan at its policy meeting next week also underpinned sentiment. Japan’s Prime Minister Shinzo Abe has called on the BoJ to adopt a 2% inflation target in the medium term to help combat deflation.
Expectations of monetary stimulus tend to benefit gold, as the precious metal is seen as a safe store of value and a hedge against inflation.
Sentiment on precious metal remained upbeat amid indications the Federal Reserve intended to continue its quantitative easing program.
Market players looked ahead to data from China on fourth quarter gross domestic product for signs of a recovery in the world’s second-largest economy.
The Asian nation is also set to release reports on industrial production and retail sales.
Weaker-than-expected data could prompt policymakers in Beijing to introduce fresh stimulus measures to boost economic activity.
Gold traders were also looking ahead to U.S. economic data later in the day. The country was to produce official data on building permits and housing starts, in addition to the weekly government report on initial jobless claims and data on manufacturing activity in Philadelphia.
Sentiment on precious metal was underpinned after Federal Reserve Chairman Ben Bernanke indicated earlier in the week that the central bank intended to continue its quantitative easing program, clearing some confusion caused by the most recent Fed meeting minutes.
Gold futures tumbled to a four-month low on January 4 after the minutes from the central bank’s December meeting indicated that it could end its bond-buying program earlier-than-expected.
The Fed’s QE program is viewed by many investors as a major source of liquidity that weakens the U.S. dollar and helps support prices of commodities and other hard assets, including gold.
Focus was expected to remain on the U.S. economy, amid growing uncertainty over how the country will tackle the USD16.4 trillion debt ceiling that it reaches in February.
Republicans lawmakers have stated they will demand major spending cuts in exchange for any agreement to raise the debt limit, however President Barack Obama said he won't negotiate on the issue.
Failing to raise the debt ceiling could lead to a first-ever U.S. default that could roil financial markets.
Expectations for more aggressive stimulus measures by the Bank of Japan at its policy meeting next week also underpinned sentiment. Japan’s Prime Minister Shinzo Abe has called on the BoJ to adopt a 2% inflation target in the medium term to help combat deflation.
Expectations of monetary stimulus tend to benefit gold, as the precious metal is seen as a safe store of value and a hedge against inflation.
Crude oil trades near 4-month high ahead of China GDP data
Crude oil futures inched up during European morning hours on Thursday, holding near a four-month high ahead of a slew of reports due on Friday from China, the world's second largest oil consumer.
Geopolitical tensions in Algeria provided further support.
Market players looked ahead to data from China on fourth quarter gross domestic product on Friday for signs of a recovery in the world’s second-largest economy.
The Asian nation is also set to release reports on industrial production and retail sales.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Meanwhile, oil traders monitored fresh geopolitical tension in Algeria after Islamist militants attacked a natural gas facility and kidnapped 41 foreigners on Wednesday, including seven U.S. citizens.
At least three people were killed in the attack, including a U.K. and a French national.
Oil found further support after weekly data from the U.S. Energy Department on Wednesday showed that crude oil supplies fell by 0.91 million barrels last week, compared to expectations for an increase of 2.3 million barrels.
Focus was expected to remain on the U.S. economy, amid growing uncertainty over how the country will tackle the USD16.4 trillion debt ceiling that it reaches in February.
Republicans lawmakers have stated they will demand major spending cuts in exchange for any agreement to raise the debt limit, however President Barack Obama said he won't negotiate on the issue.
Failing to raise the debt ceiling could lead to a first-ever U.S. default that could roil financial markets.
Geopolitical tensions in Algeria provided further support.
Market players looked ahead to data from China on fourth quarter gross domestic product on Friday for signs of a recovery in the world’s second-largest economy.
The Asian nation is also set to release reports on industrial production and retail sales.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Meanwhile, oil traders monitored fresh geopolitical tension in Algeria after Islamist militants attacked a natural gas facility and kidnapped 41 foreigners on Wednesday, including seven U.S. citizens.
At least three people were killed in the attack, including a U.K. and a French national.
Oil found further support after weekly data from the U.S. Energy Department on Wednesday showed that crude oil supplies fell by 0.91 million barrels last week, compared to expectations for an increase of 2.3 million barrels.
Focus was expected to remain on the U.S. economy, amid growing uncertainty over how the country will tackle the USD16.4 trillion debt ceiling that it reaches in February.
Republicans lawmakers have stated they will demand major spending cuts in exchange for any agreement to raise the debt limit, however President Barack Obama said he won't negotiate on the issue.
Failing to raise the debt ceiling could lead to a first-ever U.S. default that could roil financial markets.
Copper futures bounce off 3-week low; China data eyed
Copper futures bounced off a three-week low during European morning hours on Thursday, with traders looking ahead to key Chinese economic data on Friday for clues on the health of the world’s second largest economy.
Many analysts expect China's fourth quarter growth figures due Friday to show the world's second largest economy continued to bounce back from its worst slump since the 2008 financial crisis.
Data from China’s National Bureau of Statistics could show gross domestic product expanded 7.8% in the fourth quarter from a year earlier.
The Asian nation is also set to release reports on industrial production and retail sales.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Weakness in the U.S. dollar also contributed to gains, as sentiment remained upbeat after a senior European Central Bank policymaker said Wednesday that the situation in the euro zone had stabilized.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.15% to trade at 79.72.
A weaker dollar boosts demand for raw materials as an alternative investment and makes dollar-priced commodities cheaper for holders of other currencies.
Copper traders were also looking ahead to U.S. economic data later in the day. The country was to produce official data on building permits and housing starts, in addition to the weekly government report on initial jobless claims and data on manufacturing activity in Philadelphia.
Focus was expected to remain on the U.S. economy, amid growing uncertainty over how the country will tackle the USD16.4 trillion debt ceiling that it reaches in February.
Republicans lawmakers have stated they will demand major spending cuts in exchange for any agreement to raise the debt limit, however President Barack Obama said he won't negotiate on the issue.
Failing to raise the debt ceiling could lead to a first-ever U.S. default that could roil financial markets
Many analysts expect China's fourth quarter growth figures due Friday to show the world's second largest economy continued to bounce back from its worst slump since the 2008 financial crisis.
Data from China’s National Bureau of Statistics could show gross domestic product expanded 7.8% in the fourth quarter from a year earlier.
The Asian nation is also set to release reports on industrial production and retail sales.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Weakness in the U.S. dollar also contributed to gains, as sentiment remained upbeat after a senior European Central Bank policymaker said Wednesday that the situation in the euro zone had stabilized.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.15% to trade at 79.72.
A weaker dollar boosts demand for raw materials as an alternative investment and makes dollar-priced commodities cheaper for holders of other currencies.
Copper traders were also looking ahead to U.S. economic data later in the day. The country was to produce official data on building permits and housing starts, in addition to the weekly government report on initial jobless claims and data on manufacturing activity in Philadelphia.
Focus was expected to remain on the U.S. economy, amid growing uncertainty over how the country will tackle the USD16.4 trillion debt ceiling that it reaches in February.
Republicans lawmakers have stated they will demand major spending cuts in exchange for any agreement to raise the debt limit, however President Barack Obama said he won't negotiate on the issue.
Failing to raise the debt ceiling could lead to a first-ever U.S. default that could roil financial markets
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