MTECHTIPS
COMMODITY MARKET NEWS
MTECHTIPS:-Crude oil slips lower with
ECB, Fed meetings in focus
Crude oil
futures slipped lower on Tuesday, amid growing caution over expectations for
policy responses from the Federal Reserve and the European Central Bank at rate
setting meetings this week. On the New York Mercantile Exchange, light,
sweet crude futures for delivery in September traded at USD89.75 a barrel
during European morning trade, down 0.04%.Market sentiment had been boosted by
expectations that the European Central Bank is set to announce fresh policy
measures to stem the long running crisis in the euro zone the bank’s head Mario
Draghi pledged last week to do whatever is necessary to preserve the single
currency.
But investors remained wary amid worries that a
less aggressive than expected policy response by the ECB could send markets
lower.Market participants were also anticipating the outcome of the Fed’s
policy setting meeting on Wednesday, amid speculation over whether the U.S.
central bank will indicate if further easing measures are imminent.Investors
have interpreted signs of slowing U.S. economic growth as increasing the
likelihood that the Federal Reserve will implement more quantitative easing to
spur the economic recovery.
MTECHTIPS:-Gold edges lower ahead of
Fed meeting
Gold futures
edged lower on Tuesday, as investors anticipated the outcome of the Federal
Reserve’s policy meeting on Wednesday, amid speculation over the possibility of
more easing from the U.S. central bank.On the Comex division of the New York
Mercantile Exchange, gold futures for October delivery traded at USD1,621.45 a
troy ounce during early European trade, dipping 0.02%.Gold futures were likely
to test support at USD1,610.75 a troy ounce, the low from July 27, and
resistance at USD1,628.55, the high from July 17.Trade remained subdued ahead
of the upcoming Fed announcement, which could have major implications for gold
prices.Investors have interpreted signs of slowing U.S. economic growth as
increasing the likelihood that the Federal Reserve will implement more stimulus
measures to shore up the economic recovery.Gold and the dollar trade inversely,
and talk the Fed is considering more quantitative easing can weaken the
greenback and drive investors to buy the precious metal.
MTECHTIPS:-Gold gains as market
awaits signs of central bank stimulus
Gold prices
rose in Asian trading on Tuesday, buoyed slightly on expectations that the
Federal Reserve or the European Central Bank will move to stimulate their
respective economies, which would bolster gold.On the Comex division of the New
York Mercantile Exchange, gold futures for October delivery were up 0.16% and
trading at USD1,624.35 a troy ounce, up from a session low of USD1,622.05 and
down from a high of USD1,624.85 a troy ounce early during the session.Gold
futures were likely to test support at USD1,615.55 a troy ounce, the low from
July 30, and resistance at USD1,628.55, the high from July 27.The European
Central Bank and the Federal Reserve are due to address monetary policy this
week, and talk continued to build in precious metals markets Tuesday that the
Fed may hint at rolling out a third round of quantitative easing to spur U.S.
recovery, while the ECB may hint at a need for similar tools to lower borrowing
costs and steer the European economy towards growth.Under quantitative easing,
the Fed buys bonds held by banks, pumping liquidity into the economy and
weakening the greenback in the process.
MTECHTIPS:-Crude falls as market
awaits Fed, ECB statements, output data
Crude oil futures fell in Asian trading on Tuesday as investors sold to
wait and see if the Federal Reserve and the European Central Bank will hint at
a need or not to stimulate their respective economies.Both monetary policy
authorities will meet this week, and a decision to intervene — from the Fed
especially — could send oil gaining.On the New York Mercantile Exchange, light,
sweet crude futures for delivery in September traded at USD89.71 a barrel on
Tuesday, down 0.08%, off from a session high of USD89.75 and up from an earlier
session low of USD89.53.The European Central Bank and the Federal Reserve are
due to address monetary policy this week, and talk has been growing the Fed may
roll out a third round of quantitative easing to spur U.S. recovery, while the
ECB may uncork similar tools to lower borrowing costs and push the European
economy towards growth.Under quantitative easing, the Fed buys bonds held by
banks, pumping liquidity into the economy and weakening the greenback in the
process, making oil suddenly a nicely priced commodity on dollar-denominated
exchanges.