Economic Outlook for 31 January 2023.
MCX Gold prices retreated from day’s high of 57149 and settled at 56782. Comex Gold future downs by 0.22% to $1,923.10 an ounce.
Bullions prices came under pressure after the dollar bounced slightly. Dollar found some support ahead of a Federal Reserve meeting this week, while broader metal markets also ticked lower.
The yellow metal marked a slow start to the week ahead of the conclusion of a two-day Fed meeting on Wednesday, where the bank is widely expected to raise interest rates by 25 basis points.
Crude oil futures remained negative for the fourth consecutive day yesterday. Oil prices extended losses on Monday as looming increases to interest rates by major central banks and signs of strong Russian exports offset Middle East tension over a drone attack in Iran and hopes of higher Chinese demand.
MCX Crude down by 1.35% at 6418. Brent futures for March delivery fell to $84.320 a barrel, a 1.92% loss. U.S. crude fell by 2%% and settled at $77.78 per barrel.
Today, the Economic calendar starts at 7:am with the China Manufacturing PMI and Non-Manufacturing PMI.
Both data are expected to be positive for Metals and Yuan. Data foreseen at 50.2 Vs 47.0 previous, and 52.0 Vs previous 41.6 consequently.
At 10.30am – Japan will release Consumer Confidence and Housing Starts y/y. Both data are expected to have a positive impact on the Japanese Yen. Both data are foreseen higher than previous, 30.5 Vs 30.3 and 0.5% Vs -1.4% consequently.
Moreover, at 12.pm – French Consumer Spending m/m and French Flash GDP q/q could bring clutter for Euro and dollar. As both data are foreseen lower from previous – 0.5% Vs 0.2% and 0.0% Vs 0.2% consequently.
At 12.30 pm – German Import Prices m/m data is due. Data is foreseen at -2.4%, from previous -4.5%. While, German Retail Sales m/m data foreseen at -0.1%, lower from previous 1.1%, both data are expected to have a negative impact on EUR against Dollar.
At 1.15pm – French Prelim CPI m/m is due to release. Data is foreseen at 0.5% Vs -0.1% previous. Data expected to have a slightly positive impact on Euro and for bullions.
At 2.25 pm –German Unemployment Change will come out; data is foreseen at 5K, slightly higher from previous -13K. Euro will expect to react negatively based on data forecast.
Furthermore, at 3 pm : UK M4 Money Supply m/m is due to release. Data may have a positive impact on GBP. Data foreseen at 1.2% Vs -1.6% previous. At the same time, Mortgage Approvals and Net Lending to Individuals m/m are also to be release, which could have a slightly negative impact on GBP. Both data are foreseen lower than previous 44K vs 46K and 5.1B vs 5.9B previous, consequently.
At 3.30pm – Euro zone will release Prelim Flash GDP q/q. Data may have a negative impact on Euro and Bullions, as data foreseen lower at -0.1% from previous 0.3%.
At the same time, Italian Prelim GDP q/q could extend negative momentum for bullions and Euro. Data foreseen at -0.2% Vs previous 0.5%.
At 7:pm – Canada GDP m/m will be released. Data may have a neutral impact on Base Metals and Euro. Data foreseen unchanged at 0.1%, from previous reading.
At 8.30 pm – US CB Consumer Confidence could have negative impact for Bullions and positive for dollar. Data foreseen higher at 109.10 from previous reading 108.3.
Overall due to economic indicators market sentiment expected to be volatile today.