Tag Archives: Gold

Euro Wobbles On ECB’s Cautious Stance, Dollar Wavers

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: CAD Employment Change @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

Euro Wobbles On ECB’s Cautious Stance, Dollar Wavers

The euro was on the backfoot early today after European Central Bank President Mario Draghi struck a cautious note on the euro zone economy. The European Central Bank’s decision yesterday to leave interest rates unchanged was not unexpected, but Draghi said the Ukraine crisis threatened the economy and weakened the euro. The euro traded little changed at $1.3360 after falling about 0.15 percent overnight. The currency which hit a nine-month low of $1.3333 on Wednesday stands to lose about 0.5 percent on the week.

Traders are also watching out for the outcome of the Bank of Japan’s monetary policy meeting later in the day for any cues. While the BOJ is expected to stand pat on policy, a weaker assessment of the economy by policymakers could stoke expectations of further monetary easing and dent the yen.

Draghi Blames Italy As Recession Tarnishes Euro Area

Mario Draghi has blamed Italy itself for its third recession since 2008.The day after data showed the euro-area’s third-biggest economy unexpectedly contracted last quarter, the European Central Bank president singled out his country’s lack of structural reform and the disincentive for investment it engenders. This followed an opening statement regarding the region’s uneven recovery. The comments may increase pressure on Italian Prime Minister Matteo Renzi to turn around an economy with youth unemployment above 40 percent and a recession that threatens the 18-nation currency bloc’s nascent revival. The ECB president’s comments on his homeland were blunter than normal, adding to the contrast with countries such as Spain that have engaged in more structural adjustments.

Gold Climbs To 3-Week High As Iraq Tensions Rise

Gold has advanced to the highest level in three weeks, due to end the longest run of weekly losses since September as haven demand increased on unrest in the Middle East and tension over Ukraine. Bullion for immediate delivery rose as much as 0.5 percent to $1,318.72 an ounce, the highest since July 18. A fourth day of gains would make it the longest rally since June. Fighting in Ukraine and the Middle East helped gold rebound this year from the biggest drop in more than three decades. Gold has risen 1.9 percent this week even though the dollar reached a nine-month high against the euro on signs the U.S. is recovering while Europe’s economy falters. Prices dropped for the previous three weeks. European Central Bank President Mario Draghi yesterday signaled monetary policy will diverge from the U.S. for an extended period of time.

That sums up today’s highlights! Don’t forget to keep in touch via the social media platforms for all the latest trading updates of the day. We hope you have a profitable day on the markets.

Fed May Raise Rates Faster Than Expected

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: USD Core CPI @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

Fed Expected To Raise Rates Faster Than Expected

Economists expect the Federal Reserve to raise its benchmark interest rate faster than market expectations. Investors are assuming a slower pace of rate increases than the Fed itself, and may be overlooking recent reports showing the world’s largest economy is gaining strength after contracting in the first quarter. In March, officials predicted the fed funds rate, now between zero and 0.25 percent, would rise to 1 percent at the end of next year and 2.25 percent at the end of 2016. Fed officials may have underestimated the strength of the economy. Unemployment stood at 6.3 percent in May, at the top end of the range most officials forecast for the fourth quarter. Similarly, the personal consumption expenditures price index - the Fed’s preferred gauge of inflation, rose 1.6 percent for the 12 months ending April, a rate most officials expected at the end of the year. Officials will release a new set of quarterly forecasts for unemployment, inflation, economic growth and the benchmark federal funds rate at the conclusion of their meeting tomorrow.

The Tide Turns Against The Euro

The euro tumbled following monetary easing from the European Central Bank earlier this month and analysts anticipate further currency weakness. Market positioning data released on Friday showed that net short positions in the euro/dollar i.e. a bet on the euro falling, have risen to their highest level since late May 2013. Europe’s single currency has declined just over 3 percent from a 2 1/2 year high hit in early June, undermined by the ECB’s decision to impose a negative interest rate on banks for their deposits and cut its main lending rate in a bid to lift inflation and a weak economy. Currency analysts say the ECB’s monetary easing has fueled the use of the euro for carry trades - borrowing money in a currency that is backed by low interest rates to fund investments in higher-yielding assets. It seems, therefore, that the tide is turning against the once-resilient euro. Recent data shows that weekly market positioning data speculators have increased bullish bets on the greenback to their highest level in almost four months.

Iraq Violence Lifts Gold’s Safe-Haven Appeal

Gold steadied below a three-week high on today as escalating tensions in Iraq attracted some safe-haven bids. Bullion initially rallied after the United States said it could launch air strikes to support the Iraqi government after a rampage by Sunni Islamist insurgents. Investors often turn to gold or other precious metals as a safe haven in times of political or financial uncertainty but so far this year, gold has failed to maintain gains despite heightened geopolitical tensions. Gold’s initial gains were also boosted by developments in Ukraine. Traders warned this Wednesday’s Federal Reserve policy meeting could bring caution to any rally in gold as markets watch for any signals on when the U.S. central bank might begin raising interest rates.

That sums up today’s highlights! Don’t forget to keep a check on all the market events of the day via our Facebook, Twitter, Google+, and LinkedIn. We hope you have a profitable day on the markets.

G7 Powers Meet To Discuss Policy Issues Without Russia

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: U.S. Trade Balance @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

G7 Powers Meet To Discuss Policy Issues Without Russia

The world’s leading industrialized nations will meet without Russia today for the first time in 17 years. President Vladimir Putin is being left out of the talks in retaliation for his seizure of Crimea and Russia’s part in destabilizing eastern Ukraine. The two-day Group of Seven (G7) summit will cover foreign policy, economics, trade and energy security. Energy security is an issue of particularly high sensitivity to Europe after months of tension with Moscow, which supplies nearly a third of Europe’s oil and gas. The decision to drop Russia from the group was taken by its other members the United States, Germany, France, Britain, Canada, Japan and Italy in March, after Moscow seized Crimea and annexed it, a move not recognized internationally. The Wednesday-Thursday summit will include discussions on foreign policy, including Russia and EU assistance to Ukraine, as well as Syria, Afghanistan, Mali, the Central African Republic and North Korea, officials said. Economic discussions on Thursday morning are expected to be dominated by trade, including ongoing EU/U.S., EU/Canada and EU/Japan free-trade negotiations, cooperation on tax avoidance and efforts to sustain the global economic recovery. Supporting growth and jobs remains the key priority for the G-7 members. Leaders are expected to call for continued and sustained growth in order to bring down unemployment, particularly among young people and the long-term unemployed.

Gold Trades Near Four-Month Low Before ECB Meeting & U.S. Jobs Report

Gold held near a four-month low as investors awaited the European Central Bank meeting tomorrow at which policy makers may add to stimulus along with a U.S. labour report which may back further cuts to the Federal Reserve’s bond purchases. Gold for immediate delivery traded at $1,245.19 an ounce from $1,244.95 yesterday. The metal fell to $1,240.73 yesterday, the lowest level since Jan. 31, before rebounding as the Standard & Poor’s 500 Index retreated from a record and the euro rose from a three-month low against the dollar. Friday’s Non-Farm Payrolls are forecast to show employers added 215,000 jobs in the U.S., just above this year’s average, backing the case for the Fed to further reduce asset purchases as the economy recovers.

Tesco Announces 3.7% Drop In Same-Store Sales

Supermarket chain Tesco has just reported a sharp fall in first-quarter sales, hurt by price cuts and subdued consumer spending. Industry price cuts have driven lower growth in recent months for the U.K’s big 4 supermarkets including market-leader Tesco. As yet, it is unclear whether these price cuts are part of normal industry price investment or something more material and the fact that the food commodity price index supports lower food inflation has not helped clarify the issue. Tesco shares closed at £3.34 on Tuesday, down 11 percent since the start of the year.

That sums up today’s highlights! Keep posted on all the day’s trading events via our Facebook, Twitter, Google+ and LinkedIn pages. We hope you have a profitable day on the markets.

What Will Apple Reveal This Week?

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: GB Manufacturing PMI @ 08.30 & U.S. ISM Manufacturing PMI @ 14.00 GMT

WHAT WE’RE WATCHING TODAY

What Will Apple Reveal This Week?

Apple’s Worldwide Developer Conference starts today amid speculation about what the company is planning to reveal. Rumours are that Apple’s lineup this year will be the best in 25 years. Although consumers will likely have to wait until later this year for big product announcements, industry experts say that the company may roll out some new features in its software at the conference. The focus is expected to be on two big themes; health and connecting the home. For Apple, it’s all about having all the devices connected and getting people even more locked into their ecosystem and adding value to devices that users already have. The company’s competitors, including Google, which recently bought the smart thermostat company Nest, are all making plays in this space and time is ticking for Apple to do the same. Presently, it is a fragmented experience and the plan is to start connecting things together which Apple will do by using the iPhone. Related to improving Apple’s home experience, the company may also implement voice-enabled Siri capabilities in Apple TV which would help the company compete with Amazon’s Fire TV. In addition, there are rumours of the next iPhone and iPad having larger screens and that the updated operating system will enable split-screen capabilities on the iPad. This would help it compete with the growing number of tablets flooding the enterprise space. A revealing week ahead for Apple watchers, traders will be watching the markets for movements in the price of Apple stocks.

ECB Expectations Pressure Euro

The euro came under pressure today as the market braced for further stimulus measures from the European Central Bank this week. Hopes for policy action at Thursday’s ECB policy review have been high since ECB president Mario Draghi said in Portugal last week that the central bank must be prepared to take action if risks surrounding persistently low inflation emerge. The ECB is thus preparing a package of policy options for its meeting that includes cuts in all its interest rates. In the markets, the focus is shifting to what the Governing Council could do to ‘surprise’ the markets, such as signaling that more aggressive unconventional quantitative easing measures could be forthcoming. Analysts point out that if the ECB does not surprise markets, there could be some cautious profit taking on the EUR, and add that risks for EUR could be on the downside over the medium term. The euro edged down slightly to $1.3627, and remained not far from a three-month low of $1.3586 touched on Thursday.

Gold Falls In Longest Losing Streak In 7 Months

Gold fell for a fifth straight session today in its longest losing streak since November, affected by stronger global equities and weak physical demand in Asia. Spot gold had eased 0.2 percent to $1,247.89 an ounce, not too far from a 4-month low of $1,241.99 hit on Friday. The five-day fall is the metal’s longest losing run since October/November when it dropped for seven straight days. The technical outlook for gold is not looking very good and there is a strong chance it will fall to $1,230 and possibly all the way $1,200. Physical markets haven’t reacted very much to last week’s drop but if prices fall to $1,200, there could be some action. Physical buying failed to pick up as consumers expect gold prices to fall even further. Other data also showed that hedge funds and money managers cut their bullish bets in gold futures and options in the latest week to their lowest level in nearly four months, another sign of waning investor interest in the metal amid higher equities. An early or quick gold turnaround is not expected as the market may not have bottomed yet.

That sums up today’s highlights! It’s a busy week on the market so ensure you’re up-to-date with all the latest news via our Facebook, Twitter, LinkedIn and Google+ pages. We hope you have a profitable day on the markets.

Dollar Pauses After Rally; Euro Close To 3-Month Low

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: U.S. Unemployment Claims @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

Dollar Pauses After Rally; Euro Close To 3-Month Low

The dollar hovered near a two-month high against a basket of major currencies today, taking a pause after rallying due to a shake-out of long positions in sterling and a drop in the euro. The dollar index eased 0.1 percent to 80.490, close to Wednesday’s high of 80.581, its highest level since early April. A break above 80.599, the April 4 peak, will take the index back to highs not seen since mid-February. Traders seemed to be at a loss to explain the greenback’s rise apart from pointing to month-end dollar demand. The euro edged up 0.1 percent to $1.3604, holding slightly above a three-month low of $1.3587 set on Wednesday. Expectations of some policy action from the European Central Bank (ECB) have been mounting, a key reason for the recent underperformance in the euro. Many economists expect the ECB to cut its deposit rate into negative territory next week.

Gold Is Sinking…Will It Get Worse?

Gold extended losses to a third straight session on Thursday, hitting 16-week lows on a stronger dollar and weak physical demand in top buyer China. The gold market continues to show more signs of weakness as the precious metal closed at $1,259.30 per ounce, down another $6.20 after Tuesday’s $25 slide. The fact that Wednesday’s drop takes bullion below its second critical support level of $1,262 is troubling some traders as technical pressure could continue to weigh on gold in the days ahead. Gold is seen as looking increasingly weak as geopolitical concerns over Russia and Ukraine subside and that the only motivation to buy gold might be an upward turn in inflation or a war, neither of which seem to be a reality at the moment. In the meantime, Wednesday’s stronger dollar offered no support. The question is being asked by many traders, therefore, is, where does gold go from here?

Apple To Acquire Beats Electronics

Apple has announced that it will acquire headphone maker Beats Electronics for $3 billion.The deal is expected to close in the fiscal fourth quarter. Apple will pay $2.6 billion in cash and another $400 million in equity. It will also continue to use the Beats brand. Beats Electronics is a key vendor in the premium headphone market. Apple reportedly began talks to buy the company in early May. Beats’ profit margins in the headphone market may be substantial. A pair of its high-end headphones sell for as much as $450, but production costs across the brand are said to run to only about $14 a pair. Apple said the deal would add to earnings in fiscal 2015. Beats also recently entered the streaming music business placing it in head-to-head competition with much larger veteran rivals Pandora and Spotify.

That sums up today’s highlights! Keep in touch with all the day’s events on our Facebook, Twitter, Google+ & LinkedIn pages. We hope you have a profitable day on the markets.

Euro Hovers Near Lows As Draghi Speech Awaited

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: EUR President Draghi Speaks @ 08.00 GMT

WHAT WE’RE WATCHING TODAY

Euro Hovers Near Lows As Draghi Speech Awaited

The euro touched a new three-month low against the dollar today as investors awaited comments from ECB head Mario Draghi and took on board the results of the weekend elections. Critics of the European Union more than doubled their presence following the elections, as voters registered discontent over immigration, austerity and unemployment. Although it is unlikely that Draghi will say anything new or surprising, his speech will be closely watched for any signals about the ECB’s next steps. The euro has fallen more than 2 percent on the greenback since May 5 against a backdrop of rising expectations that the ECB will ease policy next month, which in turn increased wagers on the common currency coming under pressure. The Euro last traded at $1.3619, down about 0.1 percent on the day. Early in the session, it briefly dipped to $1.3615, a low not seen since mid-February. Against its Japanese counterpart, the euro slipped about 0.2 percent to 138.80 yen. Traders said the policy outlook will continue to be a negative factor for the euro rather than results of the weekend elections.

Gold Steady Below $1,300 As Ukraine Elections Eyed

Gold continued to hover below $1,300 an ounce on today after ending flat for two straight weeks but the metal could gain from developments in the Ukraine where pro-West billionaire Petro Poroshenko claimed the Ukrainian presidency on Sunday. Analysts say the relationship between Russia and the newly elected president in the Ukraine will be key for gold prices. Since the new president is not pro-Russia, it could make Ukraine more divided. There is still a lot of uncertainty and political risk there, which could boost gold’s safe-haven appeal. Spot gold was steady at $1,293.01 an ounce after ending flat for a second straight week. The metal has closed between $1,291 and $1,296 in the last seven sessions. Liquidity is likely to be thin today with U.S. markets closed for Memorial Day and Britain shut for a bank holiday.

Lagarde: Central Banks Should Cooperate On Policy Moves

IMF Managing Director, Christine Lagarde is urging central banks to cooperate on policy moves as the Federal Reserve debates the timing of its first interest rate hike since 2006. Lagarde stressed that in times of distress, the potential gains from cooperation can be huge by reducing the risk of tail events with large international feedback effects. The Fed and the Bank of England are expected to start raising interest rates in 2015. The Fed’s decision to unwind quantitative easing last year threw emerging markets into turmoil, prompting sharp currency and equity market declines in India, Indonesia, Brazil, South Africa and Turkey, and underscoring the impact of Fed policy on global markets. The case for policy cooperation may seem less compelling as urgency fades with the global economy turning a corner and as the gains from cooperative policy responses are unclear but it is precisely this uncertainty that would make us remiss in discounting the gains from cooperation in a post-crisis. Reducing vulnerabilities and reinforcing macroeconomic and financial frameworks should be the order of the day for emerging markets-and indeed for all countries according to Lagarde.

That sums up today’s highlights! We hope you have a profitable day on the markets.

Euro Inches Away From 2 1/2-Month Lows

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

WHAT WE’RE WATCHING TODAY

Euro Inches Away From 2 1/2-Month Lows

The euro staged a rebound today from a 2-1/2-month trough rising 0.1 percent to $1.3718. It had fallen as far as $1.3648 on Thursday, its lowest level since late February, in response to data showing the Eurozone grew much less than expected at the start of the year. The euro was down about 0.3 percent for the week at its current levels, putting it on track for its second straight weekly decline. The euro has fallen roughly 2 percent since May 8 when European Central Bank (ECB) President Mario Draghi persuaded markets that the bank was ready to inject fresh stimulus next month. The disappointing growth figures on Thursday only served to fuel those dovish expectations. The euro eased 0.1 percent to about 139.17 yen, not far from a 2-1/2-month low near 138.97 yen set on Thursday.

Stock Market Slumps As Economy Stuck In Low Growth

The big debate about the U.S. economy as the country emerges from the winter is whether the growth it has been experiencing is modest or accelerating. Recent figures show that recovery is “modest” which has big implications for stock prices. April Industrial Production, down 0.6 percent, was a big disappointment since it was only expected to be down 0.2 percent. That joins April Retail Sales, released on Tuesday, which were also disappointing. Bond yields are dropping in the U.S. and most of Europe, but importantly bond yields are higher in the periphery in Europe…in Italy, in Greece and in Spain. The final number we are looking for is April Housing Starts, out today. Starts are expected at 984,000, the best since December, but some are expecting more than 1.0 million Permits. The numbers so far have not been optimistic for housing. The NAHB Housing Market Index, an indicator of sentiment among home builders was also a disappointment, at 45, below expectations of 48. If we get disappointing Starts and Permits, could it be the nail in the coffin for a robust housing recovery this spring?

Gold Settles Lower After Jump In Consumer Prices

Gold prices on Thursday gave back some of the gains they notched a day earlier after a jump in consumer prices in the U.S. and a drop in jobless claims pointed to an economy on the mend, dulling the precious metal’s safe-haven appeal. Gold for June delivery fell $12.30, or 0.9%, to settle at $1,293.60 an ounce. This comes a day after the precious metal closed up $11.10, or 0.9%, at $1,305.90 an ounce. Gold reacted on the positive U.S. economic news of a lower reading of initial jobless claims which were below 300,000 - a positive sign for labour markets going forward. Consumer prices rose by 0.3% in April to mark the biggest gain since June, with core prices up 0.2%, while jobless claims fell to the lowest level since 2007. Analysts say jobless claims and CPI data have triggered a shift in sentiment for markets. Traders are punishing gold on the back of this data as it shows an improvement in the economic growth.

That sums up today’s highlights! Don’t forget you can stay in touch via our social media channels for all your up-to-the-the minute trading news. We hope you have a profitable day on the markets.

Investors Await U.S. Payroll Data

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: US Non-Farm Employment Change (NFP) @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

Investors Await U.S. Payroll Data

The U.S. non-farm payrolls data is due later today and is widely expected to show the biggest gain in hiring since last November of more than 200,000 new jobs. Analysts are looking to see if the increase in hiring is broad-based and whether wages are continuing to rise. The pace of hiring has been up and down since last fall and presently, job creation appears to be shifting higher. A recent poll reveals a net increase of 215,000 in April, which would mark the biggest bump since a 274,000 gain in November. What may not be clear straight away is how much of the increase is the result of warmer weather. A harsh winter disrupted many industries such as construction and manufacturing and some companies either cut back production or put off new hires. So far this year the economy has added an average of 178,000 jobs a month, below the 2013 level of 194,000. The bullish case would be aided by a broad increase in hiring across a range of industries. More limited gains will be regarded as a negative sign.

Revised employment figures for March and February are regarded just as important as new job creation. Throughout most of the recovery, the government’s preliminary estimates of new jobs have proven too conservative. In most months the number of jobs added to the economy has been revised sharply higher, based on more complete data. From September through February, for example, the employment numbers have been revised upward by an average of 26,000 a month. If this trend continues, job creation early in 2014 will look a lot better than it initially did. A steady pickup in hiring over the past three years has dragged the unemployment rate down to 6.7% from 9%. And economists predict the unemployment rate will drop another notch to 6.6% in April, matching a post-recession low. However, some 3.7 million people are still counted as long-term unemployed. Until the ranks of the long-term unemployed are vastly reduced, companies are unlikely to boost wages and the economy will continue to struggle to achieve its historical growth rate of 3.3% a year. Growth has averaged about 2% annually since the U.S. exited the last recession.

U.S. NFP today @ 12.30 GMT

Gold In Holding Pattern Ahead Of Jobs Report; Stocks Mixed

Gold prices inched higher Friday, as investors hesitated to commit to either direction ahead of the highly anticipated U.S. jobs report later in the day. Gold for June delivery was up at $1,283.50 an ounce. A day earlier, gold broke below levels not seen since early last week, as a rise in consumer spending and income threw a wet blanket on demand ahead of the jobs number. While the employment data is arguably the most important economic news of the month, troubles globally will continue to shape gold trading. With the Ukraine situation likely to get worse before it gets any better, gold and other safe-haven assets will likely at least see selling interest limited due to some extent.

U.S. stocks fluctuated on Thursday, a day after the Dow Jones Industrial Average rose to a record finish as investors took a cautious approach before the April nonfarm payrolls report. European shares, meanwhile are set for mixed open in advance of the US jobs data. The U.K.’s FTSE index is expected to open level at 6808, with Germany’s DAX seen 19 points higher at 9624 and France’s CAC called 7 points lower at 4480.

Pfizer Raises Offer For Astrazeneca To GBP 50 Per Share

U.S. drugmaker Pfizer said on Friday it had raised its offer for AstraZeneca to GBP 50 ($84.47) a share, adding that the British drugmaker was reviewing the proposal. AstraZeneca earlier rebuffed a proposal valuing it at just under $100 billion, or GBP 46.61 per share. Buying AstraZeneca would give Pfizer a lower tax rate and a portfolio of experimental cancer drugs. Stockholders would get 15.98 pounds in cash and 1.845 shares of the combined company for each share in AstraZeneca. The new bid is 39 percent above the closing price Jan. 3, before AstraZeneca made its initial offer. AstraZeneca rose 3.2 percent to close at 48.15 pounds a share in London, giving it a market value of 60.8 billion pounds. Pfizer fell 0.4 percent to $31.15.

That sums up today’s highlights! Keep posted on all the day’s important events via our Facebook, Twitter, Google+ and LinkedIn pages. We hope you have a profitable day on the markets!

Gold Slips From 3-Week High But Will It Head Back Up?

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: Several today including EUR German ZEW Economic Sentiment 9.00, USD Core CPI m/m @ 12.30 & Fed Chair Yellen Speaks @ 12.45 GMT

WHAT WE’RE WATCHING TODAY

Gold Slips From 3-Week High But Will It Head Back Up?

Gold declined today from a three-week high as gains in equities and strong U.S. retail sales data offset safe-haven bids that were driven by heightened tensions in Ukraine. Bullion for immediate delivery fell 0.5 percent to $1,321.31 an ounce after reaching $1,331.20 yesterday, the highest since March 24. While gold benefited from the escalation in tension between Russia and the Ukraine, upbeat U.S. economic data has put a dampener on the safe-haven rally. Nevertheless, opinions still vary as to what lies ahead for the precious metal. Some traders have warned that the gains from safe-haven bids could quickly dissipate when the Ukraine crisis is resolved while others expect gold to shine even brighter as the situation in Ukraine grows more volatile. With the Fed reiterating its commitment to improving the labour market, they expect the recent rally in gold to continue.

Generally, geopolitical tensions tend to be good for gold, given the metal’s use as a safe-haven asset. But that’s not the only catalyst traders are looking at. Gold has also been buoyed by falling interest rates over the course of the month, which stems the attraction of bonds when they are compared with non-yield-bearing assets like gold. The recent decline in stocks has not hurt either. With relations between Russia and the West at their worst since the Cold War after Moscow annexed Crimea from Ukraine, traders will be closely scrutinising movements in the price of gold.

Dollar Nudges Higher After Positive US Retail Sales Data

The dollar nudged higher versus a basket of major currencies on today after U.S. retail sales data signaled a brighter outlook for the U.S. economy. U.S. retail sales recorded their largest gain in one and a half years in March, the latest suggesting growth is on course to spring back in the second quarter after an unusually severe winter. The dollar index edged up 0.1 percent to 79.791, holding above Monday’s low of 79.562. Against the yen, the dollar edged up 0.1 percent to 101.91 yen, staying above a three-week low of 101.32 yen set on Friday on trading platform EBS. Some caution over tensions in Ukraine may be helping to temper the dollar’s gains against the yen. Since early February, the dollar has mostly traded in a range of roughly 101 yen to 103 yen, although it spent some time above 103 yen from early to mid-March and also in late March to early April.

Rio Tinto Produces Record Iron-Ore Output as Global Supply Gains

Rio Tinto Group, the world’s second-largest mining company, said first-quarter iron ore production rose to a record, up 8 percent to 52.3 million metric tons from 48.3 million tons a year earlier. At the same time as reining in spending and cutting costs companywide, the company has been driving an expansion of Rio’s iron-ore unit, the biggest contributor to earnings. Prices plunged into a bear market during the quarter as inventories ballooned to the highest ever in China. The stock advanced 1.1 percent to A$63.97 in Sydney trading. The benchmark S&P/200 Index gained 0.4 percent. Rio Tinto has started the year with a series of performance records as it continues to drive productivity gains across its operations, presenting possible opportunities for traders.

That sums up today’s highlights! Keep in touch for all the latest trading news! Find us on Facebook, Twitter, Google+ and LinkedIn. We hope you have a profitable day on the markets.

Gold On Track For Second Weekly Gain

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: G20 Meetings

WHAT WE’RE WATCHING TODAY

Gold On Track For Second Weekly Gain

Gold was trading near its highest in over 2 weeks on Friday, on track for its best week in a month. This followed minutes from the U.S. Federal Reserve’s last meeting at which monthly bond buying was cut for a third time, as tension in Ukraine persisted. The Fed has reduced monthly bond-buying by $10 billion at each of the past three meetings, while keeping its target for overnight lending between banks in a range of zero to 0.25 percent since 2008. Gold rallied 9.8 percent this year, rebounding from the worst annual drop in more than three decades, as the unrest in Ukraine, a rout in emerging markets and concern the U.S. recovery may be losing momentum spurred demand for a haven. Gold traded at $1,319.65 an ounce from $1,318.95 yesterday, when prices rose to $1,324.61, the highest since March 24.

WTI Heads for Weekly Gain Amid Speculation Of Increased U.S. Fuel Demand

West Texas Intermediate headed for a weekly gain amid speculation that U.S. fuel demand will increase as employment recovers. The discount to Brent decreased to the lowest since September after Libya signaled that it ready to boost crude exports. There are reasonable grounds for an ongoing improvement in the U.S. labor market in the next month or two which is good for demand and oil, with predictions that investors may sell West Texas contracts if prices rise to $105.20 a barrel. The other driving factor for oil is Libya and the negotiations about whether they’re going to restore some of their capacity. WTI for May delivery was at $103.06 a barrel in electronic trading on the New York Mercantile Exchange, down 34 cents. The volume of all futures traded was about 40 percent below the 100-day average. Prices have advanced 4.7 percent this year.

Google Glass Available To Buy Next Week

Google has announced that its Glass product will be available for purchase in the U.S. next week with interested consumers being able to buy online from April 15. Any adult in the US can become an Explorer by visiting the Google site and purchasing Glass for $1,500. Google Glass is available in various shades and frames. The tech giant said the number of spots in its newly extended Glass Explorer Program are limited. The product is currently not available outside of the U.S. but it will be interesting to observe initial user feedback and the reaction from the markets.

That sums up today’s highlights! Don’t forget to keep in touch with all the latest news and events for the day via our social media channels. We hope you have a profitable day on the markets.