Gold Prices Gain In Asia As Fed Views On Economy Seen
More Upbeat - Gold prices gained in Asia on
Thursday as investors parsed the Fed language for signs of a more hawkish view
on rate hikes in 2018.The Federal Reserve left interest rates unchanged at the
end of its two-day policy meeting on Wednesday, keeping them in a range between
1.25% - 1.50%. The Federal Reserve signaled that it would push ahead on its
monetary policy tightening path as economic activity has been rising at a solid
rate, while inflation remained low but is expected to "move up" in
the coming months. "The Committee expects that, with further gradual
adjustments in the stance of monetary policy, economic activity will expand at
a moderate pace and labor market conditions will remain strong," The
Federal Reserve noted in its monetary policy statement.
Copper
prices dropped on profit booking after prices gained buoyed by the first
acceleration in China's GDP growth in seven years - Copper on MCX settled down -0.5% at 450.45 on
profit booking after prices gained buoyed by the first acceleration in China's
GDP growth in seven years. BHP’s copper output jumped 20 percent to 429,000
tonnes in the quarter to end-December helped by a rise in production from its
Escondida copper mine in Chile. China's economy grew faster than expected in
the fourth quarter of 2017, as an export recovery helped the country post its
first annual acceleration in growth in seven years, defying concerns that
intensifying curbs on industry and credit would hurt expansion.
Oil extends gains on robust OPEC compliance - U.S. oil prices extended modest gains on
Thursday as OPEC's strong compliance with a supply reduction pact offset news
that U.S. production topped 10 million barrels per day for the first time in
nearly half a century."As oil prices rise, higher shale output is definitely
on the market's mind," said Tomomichi Akuta, senior economist at
Mitsubishi UFJ Research and Consulting in Tokyo. Oil output by the Organization
of the Petroleum Exporting Countries also rose in January from an eight-month
low as higher output from Nigeria and Saudi Arabia offset a further decline in
Venezuela and strong compliance with a supply reduction pact, a Reuters survey
found. However, adherence by producers included in the deal to curb supply rose
to 138 percent from 137 percent in December, the poll found, suggesting
commitment is not wavering even as oil prices hit their highest level since
2014.
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