U.S. Dollar Struggles Ahead Of Fed Chair Powell's Testimony
The U.S. dollar continues to struggle as traders gear up forthe Federal Reserve Chair Jerome Powell’s testimony in front of Congress, whichwill begin on Tuesday, says Jameel Ahmad, global head of currency strategy& market research at FXTM. “The Dollar is under threat of losses onceagain, with the Greenback at the time of writing currently trending loweragainst all of its G10 counterparts, with the exception of the CanadianDollar,” Ahmad states in a note. The Fed chair is expected to shine some lighton his interest rate policy outlook. “If Powell suggests that the FederalReserve could raise U.S. interest rates four times in 2018, it could be seen asa positive sign for the U.S. Dollar,” Ahmad notes.
By Anna Golubova of Kitco News; agolubova@kitco.com
Commerzbank: GoldMarket Focused On Powell Testimony
Monday February 26, 2018 08:16
A key focus forprecious-metals investors this week will be Tuesday’s congressional testimonyby the new chair of the Federal Reserve, Jerome Powell, say analysts withCommerzbank. “This will also be Powell’s first public appearance since hisappointment as Fed chair,” analysts say. “If he raises the prospect of furtherrate hikes tomorrow, the gold price could fall again in response. Currently,the Fed fund futures have priced in almost three rate hikes by year’s end.Against this backdrop, Thursday’s inflation data will also be of interest.”
By Allen Sykoraof Kitco News; asykora@kitco.com
MKS: Gold LiftedBy Soft Dollar, Chinese Interest
Monday February 26, 2018 08:16
Gold has beenstronger since the start of Asian-Pacific trading, when the metal was boostedby a combination of Chinese buying interest and a stronger U.S. dollar, saysSam Laughlin, senior trader with MKS (Switzerland) S.A. “Asian trade on Mondaysaw Chinese interest return to the market follow their 'soft' opening late lastweek, with the Far East piling into bullion underneath $1,330 following therecent New Year holiday,” Laughlin says. “With the yellow metal trading around$25 lower than it was when Shanghai closed for the Lunar New Year holiday,participants wasted no time bidding up the metal through mild resistance at$1,330, with interest extending as far as $1,338 into the Chinese lunch break.Physical demand piggybacked a softer greenback as USD/China took a leg lower tounderpin bullion price action, with late Asian trade pushing through $1,340 tosee the yellow metal trade +0.9% higher into European hours.” Spot gold tradedas high as $1,341.05 an ounce overnight before backing off to $1,336.75 as of 8a.m. EST, a gain of $8.40. The euro was up to $1.23220 from $1.22930 lateFriday. MKS looks for the metal to remain range-bound in the near term.
By Allen Sykoraof Kitco News; asykora@kitco.com
Walsh Trading:Gold Demand May Abate, Provide ‘Attractive Opportunity’
Monday February 26, 2018 08:16
Gold demand couldabate now that the Chinese New Year is out of the way, but this could end upbeing an “attractive opportunity,” says Michael Bullion, senior technicalanalyst with Walsh Trading. “With the Chinese Lunar New Year at an end, atypical high demand period, the physical demand for the yellow metal willlikely wane as cyclical lows have a propensity to appear in March and April,”Bullion says, favoring an options position. “The potential for this seasonaltendency to reoccur points to an attractive opportunity with limited downside.”
By Allen Sykoraof Kitco News; asykora@kitco.com
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