Commerzbank: Dollar, Korean Situation Pressure Gold
Gold has fallen back below $1,320 per ounce at the start of a new trading week. “One factor weighing on its price remains the firm U.S. dollar,” Commerzbank says. “The signs of detente in the North Korean conflict are also contributing to the lack of solid demand for gold as a safe haven at present. Following the historic meeting between North Korean leader Kim Jong-un and South Korean President Moon Jae-in, North Korea appears ready to shut down its nuclear testing facility in the country’s northeast soon.” As of 8:13 a.m. EDT, Comex June gold was down $8.60 to $1,314.80 an ounce.
By Allen Sykora of Kitco News; email@example.com
FXTM: FOMC Meeting, Jobs Report Keys For U.S. Dollar
Monday April 30, 2018 08:27
Foreign-exchange traders will be monitoring U.S. inflation data, a Federal Open Market Committee and monthly jobs report this week to determine whether to keep pushing the U.S. dollar higher, says Hussein Sayed, chief market strategist at FXTM. The greenback has bounced some 2.5% from April’s low against a basket of currencies as 10-year U.S. Treasury yields touched 3% for the first time in four years, the analyst points out. The core personal consumption expenditure index, the “Fed’s preferred measure of inflation,” is expected to move closer to officials’ target of 2% for the first time since 2012 when the numbers get released Monday, Sayed says. “Attention will shift later this week to the FOMC statement that is due on Wednesday,” Sayed continues. “Although markets do not expect any changes in policy and the decision will not include a press conference or economic projections update, any signs of steeper inflation expectations should support the outlook for an additional three rate hikes instead of two for 2018. If the Fed is willing to increase rates in June, this should be reflected in a hawkish statement.” Meanwhile, the March jobs report due out on Friday is expected to have added 195,000 jobs in April, while the unemployment is forecast to drop to 4% from 4.1%. Metals traders closely monitor moves in the dollar since base and precious metals alike tend to move inversely to the greenback.