Gold dropped as a leading dollar index strengthened
and investors awaited the latest monthly data on U.S. employment - Gold on MCX settled down -0.15% at 30429
slipped lower on Thursday, as the dollar showed little reaction to downbeat
U.S. data amid sustained uncertainty over U.S. President Donald Trump's
proposed tariffs. Sentiments remained lower for Gold after the European Central
Bank on Thursday, as expected, left interest rates unchanged Thursday, saying
it would continue its program of asset purchases through September, “or beyond,
if necessary.” The bank did drop language saying it was ready to expand
quantitative easing if conditions worsened. Also Monetary policy
differentiation continues to influence trading. Prices for the metal had
declined after the release of the Fed Beige Book, which offered a snapshot of
domestic economic activity. Among the findings of the report, which came out
after gold futures settled, growth remained at a modest to moderate pace in
January and February. While overall, it has certainly been a “roller coaster
week for the yellow metal, as the combination of political uncertainty and U.S.
rate hike expectations attracted both buyers and sellers, much attention will
be directed towards Friday’s U.S. nonfarm payrolls report, which could play a
role in how gold concludes this week.
Strong opposition to US tariffs on steel, aluminium: China Ministry of
Commerce - China warned that it will take a
strong stance to protect its interests against US President Donald Trump's
tariffs on steel and aluminium imports. China's commerce ministry spoke against
the tariffs on Friday March 9. Director of the commerce ministry's trade remedy
and investigation bureau, Wang Hejun, said that the tariffs will jeopardise multilateral
trade in the World Trade Organization (WTO) and that they will "bring a
serious impact on normal international order". “If the US measures impair
the interests, China will join efforts with other affected countries to
safeguard its own benefits," he added.
Oil Prices Rise as Trump Prepares to Meet North Korea’s Kim - Oil prices were up Friday morning in Asia with
news that North Korean leader Kim Jung Un would meet with U.S. President Donald
Trump.South Korea’s national security chief briefed White House officials on
talks between Seoul and Pyongyang on Thursday, and said that Kim has pledged to
refrain from further nuclear or missile tests. Kim and Trump would likely meet
by May at a place and time to be determined. The White House said Trump would
accept the invitation. Asian stock markets rose following the news, pulling
crude oil futures along with them. Beyond geopolitics, oil markets were mainly
affected by soaring output from the U.S., which has risen by 23 percent since
mid-2016 to 10.37 million barrels per day (bpd). U.S. oil production has
already surpassed that of top exporter Saudi Arabia, and is expected to surpass
that of top producer Russia by 2019. This would pose a significant challenge
for the Organization of the Petroleum Exporting Countries, which has been
trying to prop up oil prices by cutting output.
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