Commodity markets were drifting in negative territory on Tuesday morning in the US after a three-day break while investors await major data later this week for direction.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange fell $1.70 or 0.1 percent to $1,215.0 per ounce. Trade has ranged from $1,199.0 to $1,213.60.
Comex copper for July settlement was last down 1.2 cents or 0.6 percent to $2.1020 per pound. Trade has ranged from $2.0915 to $2.1160.
The base and precious metals have been under considerable pressure over the last few weeks while the dollar has been strong. Gold tumbled to a three-and-a-half-month low on Monday after the US dollar index climbed to a fresh two-month high of 95.96.
“With regard to the current action, we have started the week in very quiet fashion,” Edward Meir, an analyst at INTL FCStone, said. “We are seeing precious metals under pressure as well, with gold off $2.30, while silver and platinum are each off by $.20 and $4 respectively. Palladium is up $3.”
Federal Reserve monetary policy remains in focus, with chairwoman Janet Yellen saying on Friday that a near-term rate increase in interest rates could be appropriate. Fed members have been hawkish since the April meeting minutes were released; the tone has given forthcoming US data more weight.
Friday’s US employment report is expected to show the economy added 160,000 jobs in May. An improving labour market and recent signs of inflation and wage growth could lead to another rate rise as soon as June.
“Echoing recent comments from many of her colleagues including Boston Fed President Eric Rosengren and San Francisco’s John Williams, [Yellen] appears more than willing to support another rate hike sooner than later, dispelling fears she would oppose a more hawkish majority,” Stifel chief economist Lindsey Piegza said.
Earlier today data from the EU was mixed – M3 money supply undershot at 4.6 percent while private loans and the unemployment rate were as expected at 1.5 percent and 10.2 percent respectively. The CPI flash estimate at -0.1 percent and core CPI flash estimate at 0.8 percent were also on target.
Later in the US, the core PCE price index, CB consumer confidence, personal spending, personal income, the S&P/CS composite-20 HPI and the Chicago PMI are due, with the ISM manufacturing PMI to follow on Wednesday and the blockbuster jobs report on Friday.
Investors will also focus on China’s May manufacturing PMIs due on Wednesday to gauge the strength of Chinese economic recovery.
Turning to international markets, Germany’s DAX and France’s CAC-40 were each down 0.2 percent while the dollar softened 0.2 percent to 1.1160 against the euro.
As for other commodities, light sweet crude (WTI) oil futures on the Nymex rose 27 cents or 0.6 percent to $49.60 per barrel while the most actively traded Comex silver contract fell 22.4 cents or 1.4 percent to $16.045 per ounce.
(Editing by Mark Shaw)
The post Markets lethargic after extended weekend, major data awaited appeared first on The Bullion Desk.
Read More
Source: Bullion Desk News
