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Gold Breaks $1,800 Again as Traders Await Steer From Fed Minutes
Bloomberg News, Bloomberg News A Twenty kilogram gold brick is handled by a worker at the ABC Refinery smelter in Sydney, New South Wales, Australia, on Thursday, July 2, 2020. Western investors piling into gold in the pandemic are more than making up for a collapse in demand for physical metal from traditional retail buyers in China and India, helping push prices to an eight-year high. Photographer: David Gray/Bloomberg , Bloomberg
(Bloomberg) Gold climbed above $1,800 an ounce again as investors took a risk-off turn before the release of Federal Reserve meeting notes that should bring fresh insight on U.S. monetary policy.
7/5/2021 10:03:36 PM GMT | By Anil Panchal
As per the latest Quarterly Survey of Business Opinion (QSBO) from the New Zealand Institute of Economic Research (NZIER), for the Q2 2021, 60% of financial services sector firms expect interest rates to rise over coming year.
Additional details…
Capacity Utilisation 94.9% versus 93.3% in Q1 2021, inflation pressures rising.
On a seasonally adjusted basis, 10% expected business conditions to improve, better than 8.0% pessimism recorded in the previous period.
Ahead of the QSBO release, the Australia and New Zealand Banking Group (ANZ) said,
We’re forecasting annual GDP growth of 15.3% in Q2, but with growth so far out of whack with typical ranges, getting precise with what today’s data imply for GDP growth will be a challenge.
7/6/2021 3:27:51 AM GMT | By Anil Panchal
Alike every first Tuesday of the month, the Reserve Bank of Australia (RBA) is up for conveying the latest monetary policy meeting and Interest Rate Decision around 04:30 AM GMT. Following the event, Governor Philip Lowe s press conference, around 06:00 AM GMT, will also be crucial to watch as traders will seek details of action/inaction.
Contrary to the recent status-quo, the Aussie central bank has already signaled July action in its latest monetary policy meetings, which in turn keeps AUD/USD traders on their toes ahead of the key announcements.
Although broad market consensus doesn’t favor any changes in the benchmark interest rate of 0.10%, chatters over editing the 3-year yield targets and or purchase adjustments can’t be ruled out. The same contrasts with the Oz nation’s recent worries over the coronavirus (COVID-19) strains and mixed data.
Since the Fedâs surprise hawkish shift in June, the Mexican peso a popular candidate for carry trades has outperformed, gaining about 2.8%. In contrast, declines in Asian emerging currencies range from 0.7% in the Taiwan dollar to 3% in the Thai baht.
âAny flow that is happening right now is still chasing the recovery,â said Paul Sandhu, head of multi-asset quant solutions Asia Pacific at BNP Paribas Asset Management. âI do think itâs temporary because the fundamentals in Asia are better.â
Outside of currencies, foreign funds continued to favor Asian assets last month, demonstrating confidence in the region. Led by China, they added $14.4 billion worth of securities, more than half the total to all emerging markets, according to data from the Institute of International Finance.