|Day's range||1,255.80 - 1,261.60|
While the price of precious metals rose this year, this silver and gold mining stock seemed to lose its luster with investors.
New Gold and Coeur Mining have seen YTD losses of 14.3% and 22.3%, respectively, while NEM and SLW have seen YTD gains of 1.5% and 8.1%, respectively.
Kinross (KGC) expects Gilmore to potentially extend mine life at its Fort Knox mine, which is among its high performing and top producing operations.
The USDCAD pair is still trying to work its way higher and by the look of things, it has not been making a great job of it. The focus would be on the dollar for today as we have the inflation data in the form of CPI from the US and we would also be having the Fed rate annoucement and statement. Most of the market expects the Fed to hike rates today and this has already been priced into the markets.
Bitcoin remains the talk of the town after CBOE’s contracts launch on Sunday saw the cryptocurrency aggressively appreciate, but its futures market debut wasn’t all plain sailing.
The gold prices were relatively weaker during the Tuesday’s session as the market is expecting a hawkish outlook from Fed on interest rate hike. Looking ahead, the gold market will be influenced by the movement in USD and is likely to be volatile.
Gold prices dipped lower on Tuesday, hit a five-month low on the dollar strength. The expected rate hikes in 2018 continue to pressure gold prices lower. Gold prices trade slightly higher on Wednesday morning but remain near yesterday’s low at $1243.
The Federal Reserve is expected to raise its interest rate today, but its outlook via the Monetary Policy Statement is unknown.
Forex has become very cautious the past day as traders await a slew of central bank announcements over the next day and a half. The Pound has been also affected by political concerns again in the U.K and Gold has essentially sat in place. The Pound has remained near the lower rungs of its short-term value as political concerns once again embattle the U.K landscape.
President Trump suffered a major setback as the once strictly Republican state of Alabama has, for the first time in 25 years, elected a Democrat to the US Senate. Democrat Doug Jones staged a stunning come-from-behind win against GOP Roy Moore in, what many believe, will trigger a political earthquake that will be felt nationally and internationally. The vote had been nip-and-tuck and, with 99% of the vote in, Jones was holding a 50% to 49% lead. The win puts the Democrats just two seats away from the majority in the US Senate in 2018. ...
Among the four miners we're covering, Goldcorp and Barrick have YTD (year-to-date) losses of 12.9% and 14.6%, respectively.
With the rate hike a given, gold traders will be primarily focused on the U.S. central bank’s statement for clues on any further rate increases in 2018.
Early Wednesday, WTI and Brent are trading inside yesterday’s ranges. This suggests investor indecision and impending volatility. Traders are likely to make up their minds following the release of the U.S. Energy Information Administration’s weekly inventories report at 1530 GMT.
Stock traders around the world will of course be paying attention to the Federal Reserve today, and what its Outlook for interest rate hikes will be for 2018.
The FTSE 100 rallied significantly during the trading session on Tuesday, reaching the psychologically important 7500 level. This is an area that has a certain amount of psychological importance, as the number should attract a lot of attention.
U.S. producer price data showed an increase in wholesale inflation, increasing hopes that price pressures may be rising from sluggish levels. According to the Labor Department, the producer price index for final demand increased 0.4 percent last month. The number met economist expectations.
Gold has been under pressure and continues to test important short-term support. U.S Crude Oil has been able to gain. After initially gaining in early trading on Monday, the British currency reversed lower and has maintained its weaker path against the U.S Dollar.
The recent selling and liquidation can be attributed to expectations of rising interest rates, increased demand for higher risk, and rising demand for bitcoin.
Prices could continue to firm over the near-term with Brent widening its spread over WTI. There is a lot of oil affected by this shutdown so supply is going to be reduced. Brent crude oil could rise to $67.00 to $70.00 over the short-run. This may be a big enough move to pull WTI crude to $60.00 a barrel.
The next move in the index will be determined by momentum. However, we may have to wait until Wednesday after the Fed releases its decisions at 1900 GMT, before we see volume strong enough to sustain a breakout over 94.085 or under 93.750.