Gold prices were firm at the second trading session of the week.
The yellow metal is bouncing from its one-and-a-half-month low seen at the last trading session. Gold bugs are going long on hopes for further stimulus programs to boost economic recovery from COVID-19.
What you should know
At press time, Gold futures were up 0.38% at $1,836.80/ounce after hitting the lowest point since December 2 yesterday.
- Gold traders await statements from Secretary of the Treasury nominee, Janet Yellen, on U.S. stimulus programs and the U.S dollar during her Senate confirmation scheduled to hold today.
What they are saying
Stephen Innes, Chief Global Market Strategist at Axi, in a note to Nairametrics, gave insights to the yellow metal price movement and the odds of breaching above $1,860/ounce.
- “Gold prices recovered from lows yesterday before trade volumes dropped off, with markets closed in the US, and we ended up with a hammer candlestick.
- “Spot had fallen significantly earlier but found good support near $1800. If gold can break $1840 convincingly, keep an eye on $1860. The further upside from there might be a struggle if the US dollar continues to climb. Although some market participants may have turned bearish in the short-term, there could be an unexpected rally.”
What to expect
Present price actions in the precious metal market will be choppy this week. Gold traders in the coming days will monitor key geopolitical drivers such as the Treasury Secretary nominee Janet Yellen’s testimony, and US president-elect Biden’s inauguration.
Gold drops to a nine-month low, U.S Fed Chief disappoints metal buyers
Gold futures were down 0.63% to trade around $1,690 an ounce. Gold prices dropped to their lowest since Jun. 8, 2020.
The yellow metal drifted lower at the last trading session of the week staying near a nine-month low and headed for a third consecutive weekly drop. U.S. Federal Reserve Chairman, Powell disappointed metal traders on his perception of Treasury yields pushing both the greenback and bond yields up.
At the time of writing this report, Gold futures were down 0.63% to trade around $1,690 an ounce, dropping below the $1,700 price levels. Gold prices dropped to their lowest since Jun. 8, 2020, and have lost about 2.3% for the week so far.
The U.S. 10-year Treasury yield peaked at about 1.5%, while the dollar, which usually moves inversely to gold, bounced up at morning trading session in London.
The most powerful monetary policymaker affirmed his stance to keep credit loose in a speech to the Wall Street Journal jobs summit held yesterday and added that the rise in treasury yields was “notable”, he did not consider it a “disorderly” move.
Stephen Innes, Chief Global Market Strategist at Axi in a note to Nairametrics, spoke on prevailing market conditions weighing hard on the precious metal;
“Gold continues to struggle in a trend that started right out of the gates in 2021. And by failing to $1,700 this week, the sell-off may continue.
Rising bond yields and a stronger US have been the most significant obstacle while overall economic conditions improve as the trifecta Covid-19 vaccines roll out in the US.”
Bottom line: Metal investors have increased their sell-off in metals momentarily, with nickel the worst hit of all with $1,500 drops two days in a row.
OPEC+ agrees to keep Oil output unchanged, Oil up 4%
Brent Crude was up more than 4% trading around $67 a barrel.
Oil prices were all fired up at Thursday’s trading session, amid reports revealing OPEC+ agreed to Keep oil output unchanged in April.
What you should know: At the time of writing the report, Brent Crude was up more than 4% trading around $67 a barrel.
— Holger Zschaepitz (@Schuldensuehner) March 4, 2021
OPEC, Russia, and other oil producers on Thursday agreed to keep the status quo unchanged thereby pushing oil past its highest level since January 2020.
This is coming as a big win for the Saudis, which of late has been bent on keeping oil output in check.
Sequel to this landmark feat on keeping oil supply squeezed, OPEC+ had been debating and considering if it was ideal to restore as much as 1.5 million barrels a day of output.
However, the Oil Sherrif in the person of Saudi’s Energy Minister Prince Abdulaziz bin Salman urged other leading oil producers in keeping the status quo with the exception of slight increases granted to the Russians and Kazakhstan.
Nairametrics | Company Earnings
- Seplat falls into a loss in FY 2020
Seplat Petroleum Development Company […]
- 2020 FY Results: Cornerstone Insurance Plc reports a 61.1% decline in profit
Cornerstone Insurance Plc has released […]
- Ellah Lakes increases operating expenses by 33.36% in HY 2020
Ellah Lakes Plc released its half-year […]
- 2020 FY Results: Nigerian Breweries reports a 54.3% decline in profits in 2020
Nigerian Breweries Plc released its […]
- Abbey Mortgage Bank projects N51.08 million profit in Q2 2020.
Abbey Mortgage Bank has released its […]