https://viombullion.com/Message.html|11-01-2023 09:47 PM|ttp://viombullion.com/Message.html|11-01-2023 09:47 PM|Gold rose to the highest in more than eight months early on Wednesday, pushed despite a rise in the dollar, ahead of Thursday US inflation report.
Gold for February delivery was last seen up US$5.70 to US$1,882.20 per ounce, the highest since April 29.
The rise comes ahead of the December inflation report, which is expected to show US prices rose by an annualized 6.5%, according to Marketwatch, down from November's 7.1% pace. If price increases continue to wane the Federal Reserve may slow the pace of its interest-rate hikes, though a higher than expected result may increase the central bank's determination to continue pushing rates until the economy slows.
"Tomorrow's US CPI print, which is expected to show further softening, (is) leading to speculation the FOMC may slow the pace of future rate hikes," Saxo Bank noted
Physical buying from China ahead of the Lunar New Year is also supporting prices, as well as a broad rise in metals in general as China re-opens its economy following the end of its zero-Covid policy.
A rising dollar is offering a check to gold's rise, making the precious metal more expensive for international buyers. The ICE dollar index was last seen up 0.1 points to 103.33. However bond yields fell, bullish for gold since it offers no interest, with the US 10-year note last seen paying 3.589%, down 3.2 basis points.|11-01-2023 08:09 PM|KEY POINTS:
U.S. CPI report due on Thursday
Hawkish tone from Fed could prompt profit-taking - analyst
Gold prices were steady on Tuesday, with cautious traders largely focusing on Federal Reserve Chair Jerome Powell's speech for insights into the U.S. central bank's rate-hike trajectory.
Spot gold GOLD held its ground at $1,872.79 per ounce, as of 0333 GMT. U.S. gold futures GOLD were flat at $1,877.70.
Investors' focus is on Powell's speech at a central bank conference later in the day. Market participants will also scan the U.S. consumer price index (CPI) data due on Thursday for further clues on Fed's policy stance.
"Gold prices are hitting a key resistance at the $1,875 level ... A hawkish tone in Fed Chair Powell's speech later today could prompt some near-term profit-taking in gold," said IG Market strategist Yeap Jun Rong.
"However, market is on the watch for a downside surprise in the U.S. CPI to support the less-hawkish rate-hike expectations, which could translate to upside for gold prices."
Elevated interest rates dull gold's appeal as an inflation hedge and raise the opportunity cost of holding the non-yielding asset.
The market consensus of a mild recession appears to be playing out, but with a nod to a more severe downturn could continue to be gold positive, the World Gold Council said.|10-01-2023 10:55 AM|Most Asian currencies remained subdued on Wednesday against a firm dollar as the risks of a global recession continued to dampen investor outlook even as corporate earnings in the United States alleviated some growth fears.
In Asia, the Chinese yuan USDCNY depreciated 0.3%, while equities in Shanghai 000001 dropped a further 0.5%.
"Asian FX mostly traded on the backfoot, helped not the least by the weaker yuan and yen," said analysts at Maybank in a note.
"Yuan is likely to remain on the backfoot amid no signs of shifts on COVID-zero strategy or housing policies thus far from the Party Congress. Depreciation pressure could build more significantly on the yuan if U.S. dollar continues to strengthen broadly," said Maybank.
According to sources, Chinese major state-owned banks were seen to have been intervening to defend a weakening yuan by swapping its currency for U.S. dollars in the forwards market and selling those dollars in the spot market.
China is still due to release its third-quarter gross domestic product data, along with September activity data.
Elsewhere in Asia, the Malaysian ringgit USDMYR and the Philippine peso USDPHP registered meagre 0.1% depreciations.
Malaysia's exports rose 30.1% in September, slightly below forecast, while the country recorded a trade surplus of 31.7 billion ringgit ($6.72 billion) for last month.
The Indonesian rupiah USDIDR weakened another 0.1%, inching closer to the 15,500 mark by the day - a level it last traded in April 2020. Indonesian bond yields (ID10YT=RR) maintained their three-month high.
"Survey consensus is expecting a 50 bps BI (Bank Indonesia) rate hike on Thursday. Looking at the FX swap curve, a 50 bps hike appears to be largely priced in already and so may not trigger a large market reaction in government bond yields," said DBS in a research note.
"We think the bias ahead is still for yield curve to steadily flatten," the note added.
The South Korean won USDKRW appreciated 0.1%, while the Thai baht USDTHB also strengthened near 0.1%.
Thailand's finance minister said the recovery of Thailand's economy will be supported by gradual hikes in interest rates, while the central bank's headline inflation target of 1% to 3% this year was still appropriate.
The Thai currency has been hovering at a 16-year low against the dollar. It has depreciated about 12% against the greenback so far this year.
Asian equities were divided on their reactions to the better-than-expected earnings results from U.S. blue-chips like Goldman Sachs GS, Johnson & Johnson JNJ and Lockheed Martin LMT which helped their U.S. counterparts to rally.
Stock markets in India NIFTY, Indonesia COMPOSITE, Malaysia BURSA and Singapore STI rose between 0.4% to 0.9%. However, the market in S. Korea KOSPI dropped 0.1% and the Philippines PPSEI shed 0.7%.|19-10-2022 01:38 PM|Most Asian currencies remained subdued on Wednesday against a firm dollar as the risks of a global recession continued to dampen investor outlook even as corporate earnings in the United States alleviated some growth fears.
In Asia, the Chinese yuan USDCNY depreciated 0.3%, while equities in Shanghai 000001 dropped a further 0.5%.
"Asian FX mostly traded on the backfoot, helped not the least by the weaker yuan and yen," said analysts at Maybank in a note.
"Yuan is likely to remain on the backfoot amid no signs of shifts on COVID-zero strategy or housing policies thus far from the Party Congress. Depreciation pressure could build more significantly on the yuan if U.S. dollar continues to strengthen broadly," said Maybank.
According to sources, Chinese major state-owned banks were seen to have been intervening to defend a weakening yuan by swapping its currency for U.S. dollars in the forwards market and selling those dollars in the spot market.
China is still due to release its third-quarter gross domestic product data, along with September activity data.
Elsewhere in Asia, the Malaysian ringgit USDMYR and the Philippine peso USDPHP registered meagre 0.1% depreciations.
Malaysia's exports rose 30.1% in September, slightly below forecast, while the country recorded a trade surplus of 31.7 billion ringgit ($6.72 billion) for last month.
The Indonesian rupiah USDIDR weakened another 0.1%, inching closer to the 15,500 mark by the day - a level it last traded in April 2020. Indonesian bond yields (ID10YT=RR) maintained their three-month high.
"Survey consensus is expecting a 50 bps BI (Bank Indonesia) rate hike on Thursday. Looking at the FX swap curve, a 50 bps hike appears to be largely priced in already and so may not trigger a large market reaction in government bond yields," said DBS in a research note.
"We think the bias ahead is still for yield curve to steadily flatten," the note added.
The South Korean won USDKRW appreciated 0.1%, while the Thai baht USDTHB also strengthened near 0.1%.
Thailand's finance minister said the recovery of Thailand's economy will be supported by gradual hikes in interest rates, while the central bank's headline inflation target of 1% to 3% this year was still appropriate.
The Thai currency has been hovering at a 16-year low against the dollar. It has depreciated about 12% against the greenback so far this year.
Asian equities were divided on their reactions to the better-than-expected earnings results from U.S. blue-chips like Goldman Sachs GS, Johnson & Johnson JNJ and Lockheed Martin LMT which helped their U.S. counterparts to rally.
Stock markets in India NIFTY, Indonesia COMPOSITE, Malaysia BURSA and Singapore STI rose between 0.4% to 0.9%. However, the market in S. Korea KOSPI dropped 0.1% and the Philippines PPSEI shed 0.7%.|19-10-2022 01:38 PM|DEAR CLIENTS, APP UPDATE IS NOW AVAILABLE FOR IPHONE ,YOU ARE REQUESTED TO UPGRADE APP FROM APP STORE . FOR MORE DETAILS CONTACT DESK Mob: 9322005432, 7045083392, I.com : 5432 REGARDS, *VIOM BULLION.*|29-10-2020 09:34 PM|Gold markets
have rallied a bit during the trading session on Wednesday, reaching
towards the top of the overall consolidation wedge that we have been in.
At this point, the market needs to break out rather soon in order to
confirm the wedge, otherwise we will continue to drift sideways. The
50-day EMA continues to slice through the candlesticks, and it is
essentially the middle of the market that we have been in. At this
point, if we can break above the $1500 level then the market is likely
to go looking towards the $1525 level, followed by the $1540 level. To the downside, if the market is to break down below the uptrend line,
then the $1460 level would be targeted next. That is where we had seen
the bottom of this wedge form and should be somewhat supported by volume
at that level. All things being equal though, it is very likely that
the market will continue to see upward pressure, because quite frankly
the central banks around the world continue to cut interest rates, and
of course do quantitative easing. Overall, this is a market that is more
likely to go higher than lower, but we need some type of catalyst to
get things moving in that direction. Markets have been very quiet as of
late, not only in gold but in several other assets, so don’t be
surprised at all if we simply drift for a while. Eventually we will get
some type of impulsive candle, that we can start following.|24-10-2019 10:32 AM|Gold markets fell a bit during the trading session on Tuesday, to Gold markets have been a bit negative during the trading session again during the day on Tuesday but has also continued to see buyers at the uptrend line that I have marked on the chart. With that being the case it makes sense that we are going to continue the overall move to the upside, and therefore it’s likely that the market will continue to be attracted to the $1500 level, which is a bit of a fulcrum and essentially “fair value” for this market. Overall, this is a market that also features the 50 day EMA right through the last couple of candles, so I think that we are getting a lot of “push/pull” and therefore it’s likely that we will eventually try to reach to the upside. However, breaking down below that uptrend line could change a lot of things test the lower part of the wedge that has been important for the last several weeks. It’s also the beginning of the major uptrend line, so it does make sense that we started to see buyers jump back in. If we were to break down below that uptrend line, then the $1450 level is very likely to be an area where we could see a bit of support as well. Below there, then you are starting to talk about reaching down towards the 200 day EMA. That being said, I am not a huge fan of shorting Gold at this point. All things being equal, there is a lot of different pieces out there that could continue to push gold higher, not the least of which is the fact that the central banks around the world continue to cut interest rates and of course liquefy the marketplace. With that in mind, and of course a lot of concerns with the US/China trade situation and the global slowdown, goal should continue to attract quite a bit of money, even though lately it has been a bit rough|16-10-2019 09:12 AM|HELLO|22-11-2018 08:50 PM|GOOD MORNING|22-11-2018 08:49 PM|Welcome to VIOM Bullion.|22-11-2018 12:26 PM