Monday, 7 August 2017

What’s next? – GOLD 07.08.17

Posted by Anonymous at 10:48 Labels:

GOLD
Gold futures were up on Monday morning, with US employment data still weighing on safe havens and as inflation data becomes the new focus for the present week.
On the Comex division of the New York Mercantile Exchange, gold futures were trading 0.10 percent higher at $1,263.30 a troy ounce as of 07:30 GMT.
On Friday, the yellow metal dropped sharply on the back of better-than-expected US employment report for July, which reawakened speculations for a third rate hike later this year.
According to Fed funds tracked by CME Group’s FedWatch tool, market players are currently pricing in a 42.5 percent probability of a third rate hike by December.
Gold futures settled at $1,258.28 on the Comex division of the New York Mercantile Exchange, easing 0.8 percent for the week and marking its first weekly decline in four weeks.
The US Labor Department said the economy added 209,000 jobs in the previous month, above an initially forecasted 183,000. The unemployment rate ticked down to 4.3 percent.
The closely watched average hourly earnings rose by 0.3 percent in July to $26.36 per hour, which is the biggest monthly advance in the last ten months.
Wage growth is a key metric for the Federal Reserve, as it could be interpreted as more money on American pockets and therefore, more consumption.
Investors were cheered by the employment report and the optimism was also felt on the dollar index, which moved away from a fifteen-month low by the end of the week.
The US dollar index, which gauges the greenback against a basket of six major rivals, traded at 92.59, easing 0.13 percent by the time of this writing.
In the days to come, traders will be paying attention to a serious of Federal Open Market Committee speakers and a fresh inflation report in the US due on Friday.

OIL
Crude oil prices edged lower in Asian trade on Monday, returning some previous losses as concerns arise ahead of a widely monitored OPEC meeting.
The US West Texas Intermediate crude futures traded 0.56 percent lower at $49.30 per barrel as of 07:30 GMT, while the London-based Brent contracts on the ICE Futures Exchange in London were down 0.59 percent to $52.11 a barrel.
Oil benchmarks settled in green territory on Friday, supported by signs of a possible downscaling of US shale production, although in weekly terms they ended with a tiny loss over renewed concerns that OPEC-led efforts won’t be able to rebalance the market.
Oilfield service provider Baker Hughes reported a drop of one platform to leave the total oil rig count at 765 units last week, marking the second decrease in almost a month.
For the week, WTI contracts were down 0.3 percent or 13 cents, while the Brent eased 0.2 percent or 10 cents as investors eyed an OPEC meeting in the present week.
The Organization of the Petroleum Exporting Countries will gather on Monday and Tuesday in Abu Dhabi to discuss a possible increase of output cut volumes until March 2018.
OPEC and non-OPEC members agreed back in May to extend their joint output cut agreement for a nine-month period, but left unchanged the reduction volume at 1.8 million barrels per day.
So far this year, the deal hasn’t shown a relevant impact on crude benchmarks, which elevates near-term risks for investors as the oil overhang seems to continue active.
Apart from the typical inventories data from the American Petroleum Institute on Tuesday and the US Energy Information Administration on Wednesday, traders will be paying attention to monthly reports from OPEC and the Paris-based International Energy Agency on global demand levels.

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