Gold Prices Gain In Asia As Fed Views On Economy Seen More Upbeat- 1 Feb 2018
Gold Prices Gain In Asia As Fed Views On Economy Seen More Upbeat - Gold prices gained in Asia on Thursday as investors parsed the Fed language for signs of a more hawkish view on rate hikes in 2018.The Federal Reserve left interest rates unchanged at the end of its two-day policy meeting on Wednesday, keeping them in a range between 1.25% - 1.50%. The Federal Reserve signaled that it would push ahead on its monetary policy tightening path as economic activity has been rising at a solid rate, while inflation remained low but is expected to "move up" in the coming months. "The Committee expects that, with further gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and labor market conditions will remain strong," The Federal Reserve noted in its monetary policy statement.
Copper prices dropped on profit booking after prices gained buoyed by the first acceleration in China's GDP growth in seven years - Copper on MCX settled down -0.5% at 450.45 on profit booking after prices gained buoyed by the first acceleration in China's GDP growth in seven years. BHP’s copper output jumped 20 percent to 429,000 tonnes in the quarter to end-December helped by a rise in production from its Escondida copper mine in Chile. China's economy grew faster than expected in the fourth quarter of 2017, as an export recovery helped the country post its first annual acceleration in growth in seven years, defying concerns that intensifying curbs on industry and credit would hurt expansion.
Oil extends gains on robust OPEC compliance - U.S. oil prices extended modest gains on Thursday as OPEC's strong compliance with a supply reduction pact offset news that U.S. production topped 10 million barrels per day for the first time in nearly half a century."As oil prices rise, higher shale output is definitely on the market's mind," said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting in Tokyo. Oil output by the Organization of the Petroleum Exporting Countries also rose in January from an eight-month low as higher output from Nigeria and Saudi Arabia offset a further decline in Venezuela and strong compliance with a supply reduction pact, a Reuters survey found. However, adherence by producers included in the deal to curb supply rose to 138 percent from 137 percent in December, the poll found, suggesting commitment is not wavering even as oil prices hit their highest level since 2014.
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