Gold prices edged higher in Asia on Monday - 9 Jan 2017

PRECIOUS METALS

Gold prices edged higher in Asia on Monday as investors awaited a lineup of Fed speakers this week and the incoming president to set the tone and markets in Japan shout for a holiday. Gold for February delivery edged up 0.21% to $1,175.85 a troy ounce on the Comex division of the New York Mercantile Exchange. In the week ahead, investors will be looking ahead to U.S. economic reports, particularly Friday’s retail sales figures for December. Investors will also be watching an appearance by Fed Chair Janet Yellen on Thursday and speeches by a handful of other Fed officials during the week, as well as President-elect Donald Trump on Wednesday for a press conference. Last week, gold prices fell on Friday, retreating from the previous sessions one-month highs as the dollar strengthened against a currency basket after U.S. jobs data showed a slowdown in hiring in December but a pickup in wage growth.

BASE METALS

LME copper is expected to move at USD 5,540-5,620mt during Asian trading hours on Monday and SHFE 1703 copper will move at RMB 45,100-45,900/mt. In China’s domestic market, spot copper should trade at discounts of RMB 120-0/mt on Monday. Germany’s seasonally adjusted and annualized industrial output in November and trade data, China’s informal financing and annualized supply of M0, M1 and M2 in China and Eurozone January Sentix investor confidence index and November unemployment rate will be released today. Base metals will remain range-bound today.

Boston Fed Chairman will speak today at the Connecticut annual economic outlook meeting for the industry and commerce, and may give forward guidance to US economic outlook and monetary policy this year. The US dollar will strengthen, weighing on crude oil prices. Oil prices will rebound slightly now that OPEC countries fulfilled output cut plan.

ENERGIES

Crude prices were mixed in Asia on Monday with investors lauding compliance with a coordinated effort by OPEC and non-OPEC countries to trim 1.8 million barrels per day (bpd) from global crude markets, but noting a supply response from U.S. shale drillers and countries outside the pact.On the New York Mercantile Exchange, crude oil for delivery in February fell 0.48% to $53.73 a barrel. Elsewhere, on the ICE Futures Exchange in London, Brent oil for March delivery gained 0.12% to settle at $56.90 a barrel by close of trade. In the week ahead, investors will be looking ahead to U.S. economic reports, particularly Friday’s retail sales figures for December. Investors will also be watching an appearance by Fed Chair Janet Yellen on Thursday and speeches by a handful of other Fed officials during the week, as well as President-elect Donald Trump on Wednesday for a press conference.

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