Precious metals had a speculative trade yesterday. Where, yellow metal made a new high and Silver witnessed its biggest single day gain after 17 March 2023.
Both metals rise abruptly, as after U.S. dollar tumbled to a two-month low. Currency dropped towards day’s low 101.459 after another round of weak economic data reinforcing investor bets that the Federal Reserve is nearly done with its tightening cycle. Even as other central banks are seen still raising interest rates to overcome persistently high inflation. MCX GOLD up by 1.57%, settled at 60954. Silver settled at 74618, up by 3.52%.
Sterling rose to a new 10-month high against the dollar, while the euro reached its highest since February.
Job openings, a measure of labor demand, decreased 632,000 to 9.9 million on the last day of February, the lowest since May 2021, according to the monthly Job Openings and Labor Turnover Survey, or JOLTS report.
U.S. factory orders also declined for a second straight month, down 0.7% in February after falling 2.1% in January from the 1.7% jump in December.
Crude oil retreated from the day’s high 6717 and settled at 6619.00. Oil price slipped as weak economic data from the United States and China prompted fears of cooling oil demand and offset earlier gains from OPEC+ plans to cut more production.
Important Economic Data and Events
Europe
At 11.30pm – German Factory Orders m/m. Forecast is to have a contraction by 0.2% from 1.0% in last month.
At 12.15pm – French Industrial Production m/m. Forecast is to have expanded by 0.5% from contraction of -1.9 in last month.
At 12.45pm – Spanish Services PMI. Forecast is to have expanded by 57.6 from 56.7 in last month.
At 1.15pm – Italian Services PMI. Forecast is to have expanded by 53.8 from 51.6 in last month.
At 1.30pm – Europe Final Services PMI. Forecast is to have unchanged 55.6 from 55.6 in last month.
Data could have a positive impact on Euro and bullions.
UK
At 2.45pm – MPC Member Tenreyro Speaks
Tentative – BOE Quarterly Bulletin
Both events could have a volatile impact on the pound.
Canada
At 6.00pm – Trade Balance. Forecast is to have contraction by 1.5B from 1.9B in last month.
Data could have a negative impact on Base metals.
US
At 5.45 pm – ADP Non-Farm Employment Change with forecast to have a contraction by 208k from 242k
At 6.00 pm – Trade Balance with forecast to have a contraction by 68.9B from contraction of 68.3
At7.30 pm – ISM Services PMI with forecast to have a contraction by 54.3 from 55.1
All above data will to slightly negative impact on dollar.
At 8.00pm – Crude Oil Inventories. Forecast to have contraction by -2.2M compared to contraction by -7.5M.