Hawkish signals on monetary policy hold mixed trend.
Gold remained neutral for the second consecutive day yesterday. After trading in a thin range, it settled almost flat, as traders weighed hawkish signals on monetary policy from the Federal Reserve.
A slew of Fed officials spoke on monetary policy this week, with all of them raising the prospect of more interest rate hikes. While Fed Chair Jerome Powell noted recent progress against inflation, he warned that a strong jobs market and sticky inflation could invite more rate hikes.
MCX Gold Future settled at 57215, up 0.07%. Comex Gold future up 0.16%settled at $1875.10 at once
Crude Oil extended its gain for the third consecutive day. It  reacted neutral after the inventory as Turkey Earthquake and hawkish comments of interest rate hike, negated impact. U.S. Energy Information Administration data showing U.S. oil production rose last week to the highest level since April 2020, however, limited oil’s gains.
Crude inventories rose by 2.4 million barrels in the week ended Feb 3 to 455.1 million barrels, compared with analysts’ expectations in a Reuters poll for a 2.5 million-barrel rise.
The earthquake that struck Turkey and Syria on Monday stopped crude oil flows from Iraq and Azerbaijan out of the Turkish port of Ceyhan. BP (NYSE:BP) Azerbaijan has declared force majeure on Azeri crude shipments from the port. Iraq’s pipeline to Ceyhan resumed flows on Tuesday.
MCX CRUDE OIL up 1.71%, settled at 6472.Brent crude futures up 1.15%, to $85.05 a barrel, while West Texas Intermediate crude (WTI) gained 1.15% to $78.44.
Copper prices retreated further amid growing uncertainty over a potential global recession. high-grade copper futures down by 1.10%, at 4.0355 a pound after jumping nearly 1.13% in the prior session.
Sentiment expect to reamin neutral for the day
Today, the Economic calendar starts at 5.20am with Japan M2 Money Stock y/y. Data foreseen slightly positive at 3.0% from previous 2.9%,which could have a positive impact for Yen.
German Prelim CPI m/m is scheduled to be released during the day’s. Data Foreseen higher at 0.9% from previous reading -0.8%, which could have a positive impact on Euro and for bullions.
At 3.15pm – Monetary Policy Report Hearings will have a volatile impact on GBP.
At 3.30pm – EU Economic Forecasts, will bring clutter for the Euro.
Tentative- U.S President Biden Speaks is due, which will have a volatile impact for the entire market.
At 7pm- Unemployment Claims is to be released. Data foreseen 191k as compared to the previous 183k,which could have a negative impact on the dollar.
At 9:pm – Natural Gas Storage, inventory foreseen at -2000B compared to previous inventory -151B..
At 10.30pm – German Buba President Nagel Speaks, will bring clutter for Euro and Bullion.
Sentiment expects to remain neutral , as the market is awaiting for UK GDP and China CPI data which are scheduled to be released on Friday.