Comex Gold Signal
INTERNATIONAL COMEX NEWS
- Gold prices remained higher on Monday, as sentiment on the U.S. dollar remained fragile ahead of new Federal Reserve head Jerome Powell’s testimony this week. Comex gold futures were up 0.71% at $1,339.8 a troy ounce by 08:30 a.m. ET (12:30 GMT), the highest since February 20. The greenback had strengthened broadly after the minutes of the Fed’s January policy meeting showed last week that central bank officials see increased economic growth and rising inflation as justification to continue to raise interest rates gradually.
- Crude oil prices pulled back but remained within close distance of two-week highs on Monday, still helped by news Saudi Arabia plans to continue cutting output levels and as last week’s upbeat U.S. supply data also continued to support. The U.S. West Texas Intermediate crude April contract was down 35 cents or about 0.52% at $63.22 a barrel by 10:00 a.m. ET (14:00 GMT), just off Friday’s two-and-a-half week high of $63.73.
- Natural gas futures were sharply higher to start the week on Monday, boosted by forecasts for a bump in late-winter heating demand. Front-month U.S. natural gas futures tacked on 5.4 cents, or around 2%, to $2.711 per million British thermal units (btu) by 8:05AM ET (1305GMT). It rose to its best level since Feb. 8 earlier in the session. The commodity notched a gain of around 2.6% last week, as updated weather forecasting models showed a return to colder weather over the eastern U.S. during the first week of March.
- Slack in the euro zone economy may be bigger than previously estimated and this could slow the rise of inflation but only temporarily and prices will eventually climb, European Central Bank President Mario Draghi said on Monday. The factors slowing the rise of inflation will wane as growth continues and the traditional relationship between growth and inflation remains intact, even if their correlation has been weakened in recent years, Draghi told the European Parliament’s committee on economic affairs.
- European Central Bank President Mario Draghi said Monday that the euro area economy is expanding robustly, but inflation is yet to show sustained signs of moving higher so patience with regard to monetary policy is still needed. In a statement to the European Parliament, Draghi said that growth is stronger than previously expected, but inflation has yet to show more convincing signs of a sustained upward adjustment.
- U.S., Mexican and Canadian negotiators meet on Monday seeking to narrow disagreements on how to overhaul the NAFTA trade deal despite renewed signs of tension between Mexico and U.S. President Donald Trump over his planned border wall. The trade teams began a seventh round of talks on Sunday aiming to finish reworking less contentious chapters of the North American Free Trade Agreement in order to create space to broker agreement on the trickiest subjects.