Comex Gold Signal
INTERNATIONAL COMEX NEWS
- Gold prices turned lower on Wednesday, as the release of strong U.S. inflation data sent the greenback broadly higher. Comex gold futures were down 0.50% at $1,323.6 a troy ounce by 08:40 a.m. ET (12:40 GMT), off a one-week high of $1,339.4 hit earlier in the day. The U.S. Commerce Department said consumer prices rose more than expected in January by 0.5%. Year-over-year, consumer prices increased 2.1% last month a year earlier, beating expectations for a gain of 1.9%.
- Natural gas futures were under pressure again on Wednesday, falling back towards their lowest level in almost two years amid speculation the end of the winter heating season will bring warmer temperatures throughout the U.S. and cut into demand for the fuel. Front-month U.S. natural gas futures slumped 3.2 cents, or around 1.2%, to $2.562 per million British thermal units (btu) by 9:05AM ET (1405GMT).
- Penguins, Royal Dutch Shell’s (L:RDSa) latest oil and gas development in a remote corner of the British North Sea, epitomizes the new doctrine for deepwater projects — keep it cheap and simple. Shunned during the oil price crash of 2014-2016, deepwater projects are being embraced again, a challenge to the surge in onshore U.S. shale output. Penguins, the first new major deepwater project this year, will rejuvenate the 44-year-old field by drilling 8 new wells 165 meters (541 feet) underwater and connecting them to a new production vessel.
- U.S. House of Representatives Speaker Paul Ryan said on Wednesday his chamber “clearly” must address legislation next month to deal with young, undocumented immigrants who face deportation after President Donald Trump announced an end to a program providing them temporary protections. In remarks to reporters, Ryan said Trump “did a very good job of putting a sincere offer on the table” to broadly change U.S. immigration laws and “that should be a framework” for legislation. That proposal, however, is opposed by many Democrats.
- A fairly strong inflation report released on Wednesday pushed up market expectations that the Federal Reserve could accelerate plans to remove accommodative monetary policy this year. The consumer price index (CPI) for January increased by 0.5% from the prior month, beating expectations for a gain of just 0.3%. Annual headline inflation held steady at growth of 2.1%, surprising the consensus that had expected a drop to 1.9%.
- The German chamber of commerce said on Wednesday that U.S. import tariffs on steel could trigger a trade war with major trading partners, which analysts say could cut growth in Europe’s largest economy by up to 1 percentage point. U.S. President Donald Trump said on Tuesday he was considering a range of options to address steel and aluminum imports that he said were unfairly hurting U.S. producers, including tariffs and quotas. Trump’s comments were the strongest signal in months that he will take at least some action to restrict imports of the two metals, delivering on his election pledge to put America first and protect U.S. workers from increased foreign competition.