Monday, 13 February 2017

What’s next? – GOLD, OIL 13.02.17

Posted by Fort Financial Services at 00:35 Labels:

GOLD
Gold prices moved lower in Asian hours on Monday as President Donald Trump decided not to comment on North Korea’s ballistic missile test.
“I just want everybody to understand and fully know that the United States of America stands behind Japan, its great ally, 100%.” said Trump in a short statement on Sunday after playing golf with Japanese Prime Minister Shinzo Abe.
Pyongyang reported a successful launch of the missile Pukguksong-2 on Sunday, considered to be a medium long-range ballistic missile. According to KCNA, the test was conducted under direct supervision of North Korean leader Kim Jong Un.
The United States, Japan and South Korea have requested urgent consultations on Monday in the United Nations Security Council regarding this threat.
"North Korea's most recent missile launch is absolutely intolerable. North Korea must fully comply with the relevant UN Security Council resolutions," said PM Abe at a news conference from Florida, during his official stay in the United States.
On the Comex division of the New York Mercantile Exchange, gold for April delivery fell 0.29 percent to trade at $1,232.30 an ounce as of 06:35 GMT.
Yesterday, Japan’s fourth-quarter Gross Domestic Product (GDP) came in at an annualized growth rate of 1.0 percent, a tick below expectations.
Ahead this week, gold traders will pay close attention to a series of reports on inflation, industrial production and GDP data in Europe and the United States. The key event to watch is Federal Reserve Chairwoman Janet Yellen speech before the Senate Banking Committee on Wednesday at 15:00 GMT on monetary policy and economic conditions.

OIL
Oil prices edged down in Asian hours on Monday as increasing tension between the Washington and Pyongyang over a missile test weighed on sentiment.
According to Korean Central News Agency, the country is now able to carry nuclear warheads on medium-long range missiles, using solid fuel to power those rockets.
So far, President Trump has keep a restraint rhetoric on this issue. However, the US, Japan and South Korea have requested an urgent meeting at the UN Security Council on Monday.
US West Texas Intermediate oil futures traded at $53.79 a barrel on the New York Mercantile Exchange, down 0.13 percent from its previous settlement. The London-based Brent crude oil futures dropped 0.07 percent to trade at $56.66 a barrel as of 06:40 GMT.
The Organization of the Petroleum Exporting Countries (OPEC) is due to release its January report on production levels at 11:00 GMT. A bit later, the US Energy Information will publish its monthly report on domestic crude and natural gas shale production. Data will be closely monitored by oil traders as it could unveil the effects of OPEC’s output cut agreement on global markets and the response of American producers to it.
Last week, Baker Hughes said oil rigs operating in the United States rose by 8, moving the total count to 591 platforms. So far, we are standing at the highest level since November 2015. Figures increased concerns that the US could derail OPEC’s efforts to rebalance the oil market.
On Sunday, Japan reported an economic expansion of 1.0 percent in the fourth quarter 2016, falling a tick short from expectations.

Fort Financial Services

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