Gold Futures Settle Lower Ahead Of Fed Policy

Gold prices moved in a tight range on Wednesday ahead of the Federal Reserve's interest rate decision.

Despite the dollar's weakness, gold futures settled slightly lower.

The dollar was quite subdued amid expectations the central bank will slow the pace of interest rate hikes.

The Fed is widely expected to raise interest rate by 25 basis points. The accompany statement and Fed Chair Jerome Powell's comments are in focus as markets look for clarity with regard to future interest rate hikes.

The dollar index dropped to 101.65 around late morning and was at 101.73 a little while ago, down 0.36% from the previous close.

Gold futures for April ended lower by $2.50 or about 0.1% at $1,942.80 an ounce.

Silver futures for March ended down $0.227 at $23.609 an ounce, while Copper futures for March settled at $4.1110 per pound, down $0.1150 from the previous close.

A report from payroll processor ADP showed private sector job growth slowed by more than expected in the month of January.

ADP said private sector employment climbed by 106,000 jobs in January after surging by an upwardly revised 253,000 jobs in December. Economists had expected private sector employment to increase by 178,000 jobs compared to the addition of 235,000 jobs originally reported for the previous month.

A separate report released by the Institute for Supply Management showed activity in the U.S. manufacturing sector contracted for the third consecutive month in January.

The ISM said its manufacturing PMI dipped to 47.4 in January from 48.4 in December, with a reading below 50 indicating a contraction. Economists had expected the index to edge down to 48.0.

Activity in the U.S. manufacturing sector contracted for the third consecutive month in January, the Institute for Supply Management revealed in a report released on Wednesday.

The ISM said its manufacturing PMI dipped to 47.4 in January from 48.4 in December, with a reading below 50 indicating a contraction. Economists had expected the index to edge down to 48.0.

The material has been provided by InstaForex Company - www.instaforex.com

source http://www.mt5.com/forex_news/quickview/2206719/

*China Jan Manufacturing PMI 49.2 Vs. 49.0 In December

China Jan Manufacturing PMI 49.2 Vs. 49.0 In December

The material has been provided by InstaForex Company - www.instaforex.com

source http://www.mt5.com/forex_news/quickview/2206642/

*Japan Manufacturing PMI 48.9 In January - Jibun Bank

Japan Manufacturing PMI 48.9 In January - Jibun Bank

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source http://www.mt5.com/forex_news/quickview/2206627/

Gold Treads Water Ahead of a Cascade of Central Bank Hikes. Where to for XAU/USD?

The gold price rejected a move lower overnight as the US Dollar is poised ahead of today’s all-important Fed rate decision with the attention turning to post-decision press conference. Via DailyFX - Market News https://ift.tt/3try8RM

*South Korea Imports -2.6%, Exports -16.6% On Year In January

South Korea Imports -2.6%, Exports -16.6% On Year In January

The material has been provided by InstaForex Company - www.instaforex.com

source http://www.mt5.com/forex_news/quickview/2206623/

*New Zealand Unemployment Rate 3.4% In Q4; Employment +0.2%

New Zealand Unemployment Rate 3.4% In Q4; Employment +0.2%

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source http://www.mt5.com/forex_news/quickview/2206617/

Oil Futures Settle Notably Higher

Crude oil futures rebounded from early weakness to settle on a firm note on Tuesday.

A firm dollar, and data showing an improvement in demand for crude and petroleum products in the U.S. in November helped lift oil prices higher.

Oil prices hovered around 3-week lows earlier in the day amid concerns about the outlook for energy demand and prospect of further interest rate hikes.

The Federal Reserve is widely expected to raise interest rate by 25 basis points amid signs of cooling inflation. The accompanying statement and post meeting comments from Fed Chief Jerome Powell are in focus for clarity on future rate hikes.

The Bank of England and the European Central Bank are also scheduled to announce their interest rate decisions this week. Both the BoE and the ECB are likely to raise their interest rates by 50 basis points.

The dollar index retreated to 102.03 after surging to 102.61.

West Texas International Crude oil futures for March ended higher by $0.97 or about 1.3% at $78.87 a barrel, recovering smartly from a low of $76.55 a barrel.

WTI crude futures shed about 1.7% in the month.

Brent crude futures were up $1.01 or 1.2% at $85.51 a barrel a little while ago.

The Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, are set to meet virtually on Wednesday. It is very likely that the group will maintain production at current levels.

Weekly oil reports from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA) are in focus. The API's data is due later today, while EIA's inventory data is due Wednesday morning.

The material has been provided by InstaForex Company - www.instaforex.com

source http://www.mt5.com/forex_news/quickview/2206616/