The price of gold steady in Asia
Gold is moving steady in Asian trade on Wednesday as investors are still silent on the sidelines ahead of a European Central Bank meeting on Thursday and with the prospect of rising US interest rates sooner rather than later this year increased slightly.
On the Comex division of the New York Mercantile Exchange, gold for August delivery edged up 0.06% to $ 1,222.15 per troy ounce.
Silver futures for September delivery fell 0.30% to $ 19.947 per troy ounce, while copper for September delivery rose 0.04% to $ 2.259 per pound.
Overnight, gold ticked on Tuesday, despite strong firm dollar, as investors await two critical central bank meeting later this month for further indications on the strength of the yellow metal as a hedge against inflation.
On Tuesday, stocks on Wall Street hovering in record territory as the Dow Jones Industrial Average remained on pace for the session eighth consecutive victory. Over the last week, both the Dow and the S & P 500 Composite has reached an all-time intraday and closing highs on several sessions, in a clear signal of weakness between the euro zone banking stocks and the Japanese yen falls.
Investors largely hesitant to make a big step ahead of the monetary policy meeting of the European Central Bank on Thursday. ECB Governing Council is widely expected to stand pat on interest rate decisions Brexit first since the historic decision last month. While the Governing Council will receive an update on the economic data release of the German ZEW Economic Sentiment surveys and indicator of consumer confidence across the euro zone, the ECB still receive the relative scarcity of information about how the economy has responded surprise last month in United Kingdom
Next week, the Federal Reserve will also release its interest rate decision the latest upon completion of the two-day July meeting on July 27. Since the Federal Open Market Committee (FOMC) kept short term interest rates steady in June, a number of policy-makers have been split at the time of rising interest rates The next US central bank.
Any increase in interest rates by the FOMC this year is seen as bearish for gold, which is struggling to compete with high yield bearing assets in the environment increasing rate.
Resistance: 1333.50 1334.70 1335.97 High / Low: 1337.85 / 1325.15
Support: 1331.80 1330.58 1328.90 Running Price: 1333.20
Comment: For intraday trade today suggest Buy at 1334.15; stop loss at 1333.55; target at 1335.35.
The dollar strengthened against Yen
The dollar posted gains against the yen in early Asian trade with investors watching the dollar’s value against other major currencies such as the yen, pound and euro waiting for further monetary policy easing.
USD / JPY was changing hands at 106.23, up 0.09%, while the AUD / USD was trading at 0.7515, up 0.09%. GBP / USD was trading at 1.3112, flat, while the EUR / USD was changing hands at 1.1018, down 0.03%.
Ahead in Asia, MI leading index for July is due to the previous figures showed a rise of 0.2% month-on-month.
Overnight, the dollar hit a four-month high against a basket of major rival on Tuesday after better housing data expected to be released in the United States and while the International Monetary Fund (IMF) weighed in on the economic damage to the UK and the euro zone in the wake of Britain’s decision to leave the European Union (EU), which is known as Brexit a.
In a report, the US Commerce Department said that housing starts jumped 4.8% to hit a seasonally adjusted 1.189 million units, beating consensus expectations for a gain of just 1.17 million.
At the same time, building permits, considered a leading indicator for the housing market, rose 1.5% to a seasonally adjusted 1.153 million units, settling above forecasts for an increase to 1.15 million.
International Monetary Fund (IMF) released an updated global forecasts on Tuesday, reducing its forecast for economic growth worldwide in 2016 to 3.1%, from the previous 3.2%, although expect a rebound to 3.4% in 2017.
The U.K. hardest hit by the IMF cut its forecast of 1.7% from the previous 1.9% for this year and cut its 2017 growth estimate to 1.3% from 2.2% due Brexit April.
The euro zone does not escape unscathed as expectations for growth in 2017 was cut to 1.4% from 1.6%.
Instead, the IMF does not cut the US forecast to 2.2%, from the previous 2.4%, but said that Brexit impact on the US economy will be muted and explained that the reduction was due to weaker than expected reading of first-quarter gross domestic product.
Resistance: 105.96 106.05 106.10 High / Low: 106.52 / 104.56
Support: Running 105.76 105.68 105.62 Price: 105.90
Comment: For intraday trade today suggest sell at 105.68; stop loss at 106.78; target at 104.48.
The Kospi index fell eroded by the weakening of the currency
The Kospi index opened negative in Asian trade on Wednesday, when it was observed down -11.32 points or -0.56 percent, at 2005.57. Kospi index weakening caused by the weakening won.
This morning the currency Won weakened observed. USDKRW currency pair rose to 0.64 percent at 1,142.93.
In early trading this morning large capital stocks weakened. Shares in Samsung Electronics fell -0.26 percent, Korea Electric Power shares fell -0.66 percent, AmorePacific shares fell -0.6 percent.
While the automotive sector traded in negative zone, with industry leader Hyundai Motor shares fell -0.38 percent and Hyundai Mobis fell -0.96 percent.
POSCO, the steel company No.1, advanced 1.11 percent. while stocks Naver, the country’s top Internet portal operator, rose 0.98 percent.
In Asian trade, crude oil weakened. Oil prices were mostly lower, with global benchmark Brent down 0.28 percent at $ 46.83 per barrel, while US crude futures down 0.35 percent at $ 45.08.
The weakening of crude oil also weighed on energy shares. S-Oil down -0.64 per se, SK Innovation down -1.02 percent.
As for the Kospi index futures tracked down -1.60 points or -0.64% at 249.40, down from a previous close at 251.00.
The US dollar rose against compared to other major currencies, reaching its highest level since March 10 fell to $ 1.10 Euro and the British pound was trading at $ 1.31. The dollar strengthened against the yen at ¥ 106.12.
Tonight will be released weekly crude oil inventory data that indicated the US by EIA withdrawals but less than expected. If realized, it will push the price of crude oil.
Resistance: 250.98 251.27 251.42 High / Low: 252.15 / 249.21
Support: Running 250.77 250.67 250.43 Price: 250.80
Comment: For intraday trade today suggest sell at 251.26; stop loss at 253.26; target 250.06.