Comex Gold Signal
INTERNATIONAL COMEX NEWS
- Gold prices moved lower on Tuesday, as comments by Federal Reserve Chairman Jerome Powell pushed the U.S. dollar higher despite the release of downbeat data on U.S. durable goods orders. Comex gold futures were down 0.13% at $1,331.9 a troy ounce by 08:35 a.m. ET (12:35 GMT). The greenback was boosted after Fed Chair Jerome Powell reiterated on Tuesday that the U.S. central bank would likely move forward with gradual increases in interest rates.
- Crude oil prices slipped lower on Tuesday, ahead of this week’s U.S. supply reports but the commodity remained within close distance of recent mutli-week highs amid sustained optimism over the rebalancing of the market. The U.S. West Texas Intermediate crude April contract was down 18 cents or about 0.28% at $63.73 a barrel by 10:00 a.m. ET (14:00 GMT), just off Monday’s more three-week highs of $64.22.
- Natural gas futures edged lower on Tuesday, retreating from the prior session’s two-week high 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 shed 1.5 cents, or around 0.6%, to $2.671 per million British thermal units (btu) by 9:35AM ET (1435GMT). It rose to $2.723 in the last session, its best level since Feb. 9.
- Treasury 10-year yields at 3 percent may fail to entice Japanese investors unless the dollar starts to become more resilient, according to Sumitomo Mitsui Trust Asset Management Co. “Japanese investors were buying Treasuries when a rise in yields was pushing up the dollar, but that correlation started to break down in December,” said Hideaki Kuriki, Tokyo-based chief fund manager at the company that oversees the equivalent of $89 billion. Their appetite for U.S. bonds has now been limited, and local investors have been unwinding their positions as the dollar-yen’s outlook starts to deteriorate, he said.
- Federal Reserve Chairman Jerome Powell, pledging to “strike a balance” between the risk of an overheating economy and the need to keep growth on track, told U.S. lawmakers on Tuesday that the central bank would stick with gradual interest rate increases despite the added stimulus of tax cuts and government spending.
- The Bank of Canada is on course to raise interest rates twice more this year as it aims to strike a balance between a stronger economy and a number of economic risks, including trade negotiations and new housing regulations, a Reuters poll found. The central bank has raised interest rates three times since last July, amid a robust job market and solid economic growth, but policymakers have said repeatedly they will be cautious in considering further hikes.