GOLD TRADING FORECAST TODAY
INTERNATIONAL COMEX NEWS
- Gold prices were little changed in midmorning trade tracking caution also seen in the dollar as the Federal Reserve’s two-day policy meeting kicked off on Tuesday. At 10:40AM ET (14:40GMT), gold futures for August delivery on the Comex division of the New York Mercantile Exchange slipped 70 cents, or 0.05%, to $1,302.50 a troy ounce. On the geopolitical front, U.S. President Donald Trump and North Korean leader Kim Jong Un pledged to work toward complete denuclearization of the Korean peninsula, while Washington committed to provide security guarantees for its old enemy.
- OPEC said the oil market outlook in the second half of 2018 is highly uncertain even though the producer group’s figures show a global glut has ended, suggesting talks next week on relaxing a supply cut deal won’t be straightforward. OPEC, Russia and other non-OPEC producers have been cutting output since January 2017 to get rid of excess supply and boost prices.
- Saudi Aramco plans to boost investments in refining and petrochemicals to secure new markets for its crude, and sees growth in chemicals as central to its downstream strategy to lessen the risk of a slowdown in oil demand. Aramco, the world’s biggest oil producer, is expanding its footprint globally by signing downstream deals and boosting the capacity of its plants, ahead of an initial public offering next year – the largest IPO in history.
- Goldman Sachs (NYSE:GS) on Tuesday cautioned investors with U.S. mortgage-backed securities holdings face the risk of below average returns in the coming year due to rising bond yields and their current low yield premiums over comparable U.S. Treasuries. After adjusting for risk, MBS on average have produced 0.35 percentage point more than Treasuries in annual total return since 1998, Goldman Sachs analyst Marty Young said in a research note.
- Signs of economic weakening in Italy and the wider euro zone are complicating the new, anti-establishment coalition’s plans for deep tax cuts and higher welfare spending. When the euro zone slows down, chronically sluggish Italy normally slows more sharply, with a knock-on effect on its fragile public accounts. The euro zone’s third largest economy has grown less than any of its partners since the start of monetary union in 1999, and high unemployment and rising poverty helped propel the 5-Star Movement and the right-wing League into power.
- The Faroe Islands are targeting a free trade deal with Moscow next year to cement their place as Russia’ biggest foreign supplier of fish, a minister said on Tuesday. With a population of only 50,000, the tiny group of windswept rocky islands in the North Atlantic became the No.1 exporter of fish to Russia last year, according to data from the country’s customs agency. They supplanted Norway following the tit-for-tat sanctions with the West that followed Moscow’s annexation of Crimea in 2014.