EUR 8.82 For Business Accounts Only

Gold edges up on dollar dip; Fed policy cues remain key, (AKD Commodities vantage, Nov 29 2022)

GOLD: Gold prices ticked up on Tuesday, helped by a softer dollar, while market participants awaited more clarity on the U.S. Federal Reserve’s rate hike stance. Spot gold was up 0.3% to $1,745.22 per ounce as of 0251 GMT. U.S. gold futures rose 0.3% to $1,745.40. Bullion prices fell about 1% in the previous session after hawkish comments from U.S. Federal Reserve officials. Fed Presidents James Bullard and John Williams said there was a long way to go to fight inflation. The dollar index inched 0.2% lower. A weaker greenback makes gold cheaper for overseas buyers. Gold is also sensitive to rising interest rates as they increase the opportunity cost of holding the non-yielding asset. Investors’ focus will now squarely be on Fed Chair Jerome Powell, who is due to speak at a Brookings Institution event on Wednesday.

OIL: Oil prices dropped in early trade on Tuesday, weighed down by concerns about slowing fuel demand in top crude importer China amid strict Covid-19 curbs. Brent crude futures fell 45 cents, or 0.5%, to trade at $82.74 a barrel at 0113 GMT. U.S. West Texas Intermediate (WTI) crude futures dropped 51 cents, or 0.7%, to $76.73 a barrel. Brent settled down 0.5% the previous day, having slumped more than 3% to $80.61 earlier in the session to its lowest since Jan. 4. WTI settled up 1.3% on Monday, after earlier touching its lowest since December 2021. Group of Seven (G-7) and European Union diplomats have been discussing a cap of between $65 and $70 a barrel, with the aim of limiting revenue to fund Moscow’s military offensive in Ukraine without disrupting global oil markets.

US-EQUITIES: U.S. stock futures were higher on Tuesday morning after the major averages came under pressure from Covid protests in China, and as investors anticipated more economic data and commentary from Federal Reserve leaders this week. Dow Jones Industrial Average futures added 72 points, or 0.21%. S&P 500 and Nasdaq 100 futures climbed 0.35% and 0.51%, respectively. The Dow Jones Industrial Average lost 497.57 points, or 1.45%, during the regular session Monday. The S&P 500 slid 1.54%, while the Nasdaq Composite closed down 1.58%. 

U.S DOLLAR: The dollar held its overnight gains on Tuesday as concerns about unrest in China over Covid-19 restrictions dampened market sentiment, and as hawkish remarks from Federal Reserve officials gave the greenback an additional leg up. Against a basket of currencies, the U.S. dollar index was marginally lower by 0.1% at 106.50, after rising 0.5% overnight. Market sentiment remained cautious in early Asia trade on Tuesday, with the Aussie nursing some of its deep 1.5% overnight loss. It was last 0.02% higher at $0.6654.