Comex Gold Signal
INTERNATIONAL COMEX NEWS
- Gold prices remained at six-month lows on Thursday, as trade tensions between the U.S. and China resurfaced. Comex gold futures for August delivery were down 0.46% to $1,268.60 a troy ounce as of 10:57 AM ET (14:57 GMT). Tensions between the U.S. and China continue, as the two largest economies in the world faced a tit-for-tat over trade tariffs. Earlier this week U.S. President Donald Trump threatened to impose tariffs on another $200 billion of Chinese goods.
- OPEC appears to be edging toward raising crude oil output at its policy meeting on Friday, but the oil options market shows traders and investors are not betting heavily on that scenario. With just one day to go until the group holds its policy meeting, the derivatives market shows participants buying significant volumes of protection — prepared for fireworks.
- Natural gas futures stayed higher on Thursday, but came off the best levels of the session after data showed that supplies in storage rose more than forecast last week. Front-month U.S. natural gas futures inched up 1.5 cents, or around 0.5%, to $2.979 per million British thermal units (btu) by 10:36AM ET (1436GMT). Futures were at around $3.002 prior to the release of the supply data.
- Bank regulation has gone too far, yet supervisors may still be missing risk factors that could herald the next crisis, the outgoing Dutch member of the European Central Bank’s Supervisory Board said on Thursday. Banks have faced increasingly stringent rules since the global financial crisis and critics argue that excessive regulation could force financial companies to take on new types of risks that are not yet on the radar of supervisors.
- The Bank of England bolstered expectations that at its next meeting it will raise rates for only the second time in a decade, after its chief economist unexpectedly joined the minority of policymakers voting for a hike on Thursday. The central bank also gave new guidance on when it might start to sell its 435 billion pounds ($574 billion) of British government bonds, saying this could come once rates have reached around 1.5 percent, compared with previous guidance of 2 percent.
- The Bank of England said on Thursday it could start to sell the nearly half trillion pounds of assets it bought to boost the economy sooner than previously thought, though analysts said a reduction still looked years away. Like other central banks, the BoE amassed huge sums of government bonds bought with newly created money to spur economic growth after the financial crisis, but a decade later they are now working out how to unwind this stimulus.