What’s next? – GOLD, OIL 28.04.17

GOLD
Gold futures turned higher in Asian trading on Friday, following remarks from US President Donald Trump in regard to the increasing geopolitical tensions in the Korean peninsula.
The Republican leader said that he will terminate an ongoing free trade pact with South Korea, unless the Asian nation is willing to negotiate terms. Trump also said that South Korea should pay $1 billion for the THAAD anti missile system that has been recently installed over there.
The Terminal High Altitude Area Defense (THAAD) was deployed earlier this week as a way to protect South Korea and Japan from missile attacks.
On the Comex division of the New York Mercantile Exchange, gold for June delivery was up by 0.09 percent to trade at $1267.00 a troy ounce as of 07:00 GMT.
The yellow prices remained mostly flat on Thursday, as traders continued to feel optimistic about Trump’s tax reform, which boosted the US dollar despite downbeat economic reports.
The US Labor Department said initial jobless claims increased by 14,000 last week, leaving the total count at 257,000 for the week ended April 21.
In a parallel report, the National Association of Realtors said pending home sales index, notched down by 0.8 percent to 111.4.
Durable goods orders added 0.7 percent in March, falling short from an expected 1.2 percent build and down from a previous 2.3 percent increase in February.
Investors are shifting their focus to next week’s Federal Reserve interest rate decision. The US regulator is expected to hold things in place until further economic data supports a new hike.

OIL
Oil futures continued to rise in Asian hours on Friday, with investors focusing on President Donald Trump comments on the North Korean crisis and fresh supply data from Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA).
US West Texas Intermediate oil futures traded at $49.43 a barrel on the New York Mercantile Exchange, up 0.94 percent from its prior close. The international Brent crude oil futures rose 0.93 percent to trade at $52.30 a barrel as of 07:00 GMT.
Crude benchmarks settled in red territory on Thursday, as reports showed that Libya has increased its oil output. The Sharara and El Feel oilfields are now again operational following a series of strikes that blocked pipelines for several weeks.
Data from Libya comes in a day after the US Energy Information Administration reported bigger-than-expected decrease in crude inventories.
According to the latest document, crude stockpiles fell by 3.6 million barrels in the week ended April 21, against a 1.7 million-barrel drawdown seen. Gasoline stockpiles, on the contrary, rose by 3.4 million barrels, despite expectations for a decrease based on the summer driving season.
Investors are looking ahead of the next OPEC meeting in regard of a possible extension of the output cuts agreement. OPEC Secretary General Mohammad Barkindo said the group is working to persuade other members on the extension.
Saudi Arabia and Kuwait have already expressed their pro-deal position, but other key parts on the deal, like Russia for instance, haven’t yet decided whether it will join it or not.

Fort Financial Services