Gold slightly lower in Asia ahead of central bank meetings
Gold futures slipped fractionally in the early part of Thursday’s Asian session following a small loss during Wednesday’s U.S. session. Traders are undoubtedly somewhat pensive ahead of a pair of marquee central bank meetings later today.
Gold futures were likely to test support USD1, 643.25 a troy ounce, Monday's low, and resistance at USD1,675.
News flow for gold has been sluggish this week, but the Bank of England and the European Central Bank are scheduled to meet later today and those meetings could provide some impetus for conviction in the gold markets.
Following the BoE and ECB meetings, traders will turn their attention to the Bank of Japan’s two-day meeting, which kicks off on January 21, and another Federal Open Market Committee meeting scheduled for later this month.
Traders are expecting BoE will not announce fresh monetary easing measures. In December, the central bank voted overwhelmingly against extending a USD601 billion bond-buying initiative. With interest rates hovering around a record low of 0.5%, a rate cut is probably off the table as well.
With the Eurozone economy showing some signs, albeit faint, of recovery, the ECB will probably keep rates at 0.75%. The 17-nation Eurozone is mired in a recession, but the region has stabilized recently, meaning the ECB may not feel compelled to lower rates.
For now, the ECB primary objective may be to stimulate bank lending as a way of jolting economic growth. In inflation moves higher later this year, the ECB could move to lower rates at that time.
Gold futures were likely to test support USD1, 643.25 a troy ounce, Monday's low, and resistance at USD1,675.
News flow for gold has been sluggish this week, but the Bank of England and the European Central Bank are scheduled to meet later today and those meetings could provide some impetus for conviction in the gold markets.
Following the BoE and ECB meetings, traders will turn their attention to the Bank of Japan’s two-day meeting, which kicks off on January 21, and another Federal Open Market Committee meeting scheduled for later this month.
Traders are expecting BoE will not announce fresh monetary easing measures. In December, the central bank voted overwhelmingly against extending a USD601 billion bond-buying initiative. With interest rates hovering around a record low of 0.5%, a rate cut is probably off the table as well.
With the Eurozone economy showing some signs, albeit faint, of recovery, the ECB will probably keep rates at 0.75%. The 17-nation Eurozone is mired in a recession, but the region has stabilized recently, meaning the ECB may not feel compelled to lower rates.
For now, the ECB primary objective may be to stimulate bank lending as a way of jolting economic growth. In inflation moves higher later this year, the ECB could move to lower rates at that time.
Oil rebounds slightly in Asia following inventories data
Oil futures rebound slightly in the early part of Thursday’s Asian session following a small loss during Wednesday’s U.S. session as traders digested the most recent batch of weekly inventory data.
On the New York Mercantile Exchange, light, sweet crude futures for February delivery added 0.02% to USD93.11 per barrel in Asian trading Thursday. Crude lost 0.24% to close at USD92.93 a barrel during Wednesday’s U.S. session.
On the New York Mercantile Exchange, light, sweet crude futures for February delivery added 0.02% to USD93.11 per barrel in Asian trading Thursday. Crude lost 0.24% to close at USD92.93 a barrel during Wednesday’s U.S. session.
Natural gas prices extend losses on warm weather reports, supply data
Natural gas futures extended Wednesday losses into Thursday on forecasts for warmer-than-normal temperatures to hold for much of the lower 48 U.S. states.
Rising supplies pushed prices to lows not seen since September.
Rising supplies pushed prices to lows not seen since September.
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