Commerzbank: Dollar, Korean Situation Pressure Gold
Gold hasfallen back below $1,320 per ounce at the start of a new trading week. “One factorweighing on its price remains the firm U.S. dollar,” Commerzbank says. “Thesigns of detente in the North Korean conflict are also contributing to the lackof solid demand for gold as a safe haven at present. Following the historicmeeting between North Korean leader Kim Jong-un and South Korean President MoonJae-in, North Korea appears ready to shut down its nuclear testing facility inthe country’s northeast soon.” As of 8:13 a.m. EDT, Comex June gold was down $8.60 to $1,314.80 an ounce.
By Allen Sykoraof Kitco News; asykora@kitco.com
FXTM: FOMCMeeting, Jobs Report Keys For U.S. Dollar
Monday April 30, 2018 08:27
Foreign-exchange traders will be monitoring U.S. inflation data, aFederal Open Market Committee and monthly jobs report this week to determinewhether to keep pushing the U.S. dollar higher, says HusseinSayed, chief marketstrategist at FXTM. The greenback has bounced some2.5% from April’s low against a basket ofcurrencies as 10-year U.S. Treasury yields touched 3% for the first time infour years, the analyst points out. The core personal consumption expenditureindex, the “Fed’s preferred measure of inflation,” is expected to move closer toofficials’ target of 2% for the first time since 2012 when the numbers getreleased Monday, Sayed says. “Attention will shift later this week to the FOMCstatement that is due on Wednesday,” Sayed continues. “Although markets do notexpect any changes in policy and the decision will not include a pressconference or economic projections update, any signs of steeper inflationexpectations should support the outlook for an additional three rate hikesinstead of two for 2018. If the Fed is willing to increase rates in June, thisshould be reflected in a hawkish statement.” Meanwhile, the March jobs reportdue out on Friday is expected to have added 195,000 jobs in April, while theunemployment is forecast to drop to 4% from 4.1%. Metals traders closely monitormoves in the dollar since base and precious metals alike tend to move inverselyto the greenback.
By Allen SykoraFor Kitco News
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asykora@kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.