Gold Futures Extend Recent Gains, Settle Modestly Higher

Trading 10 avr 2019 Donner votre avis

Gold futures settled higher on Wednesday, extending gains to a fourth successive session, amid lingering worries about global economic growth.

The European Central Bank today held its policy rates and the forward guidance unchanged.

Post announcement of the decision, the ECB President Mario Draghi said during his press conference that the bank stands ready to deploy more policy tools, if any contingency warranted given the weaker growth outlook, and added that policymakers were studying the impact of the negative deposit rate on bank profitability, which suggest they may announce some relief measures for banks in coming months.

Gold futures for June ended up $5.60, or 0.4%, at $1,313.90 an ounce.

On Tuesday, gold futures for June ended up $6.40, at $1,308.30 an ounce.

Silver futures for May ended up $0.033, at $15.244 an ounce, while Copper futures for May settled at $2.9255 per pound, down $0.0085 from previous close.

In U.S. economic news, the Labor Department released a report showing consumer prices in the U.S. increased by slightly more than anticipated in the month of March.

The Labor Department said its consumer price index climbed by 0.4% in March after edging up by 0.2% in February. Economists had expected the index to rise by 0.3%.

Excluding the jump in energy prices and a modest increase in food prices, core consumer prices inched up by 0.1% in February, matching the uptick seen in the previous month. Core prices had been expected to tick up by 0.2%.

In his press conference today, Draghi said, "The persistence of uncertainties, related to geopolitical factors, the threat of protectionism and vulnerabilities in emerging markets, is leaving marks on economic sentiment."

Further, Draghi said the incoming data continue to be weak, especially for the manufacturing sector, mainly on account of the slowdown in external demand. The impact of these factors is turning out to be somewhat longer-lasting, hence, the bank expects the slower growth momentum to extend into the current year.

Regarding the latest policy session, Draghi said the main goal was to "reassert the readiness to act if the contingency warranted."

On Brexit, Draghi said the confusion over the deal was "part and parcel of the overall uncertainty hanging" over Europe.

Gold prices edged up after the session ended, as the minutes of the Federal Reserve's March policy meeting showed the members felt the weak economic outlook would likely prompt the central bank to hold rates unchanged throughout this year.

"Several participants noted that their views of the appropriate target range for the federal funds rate could shift in either direction based on incoming data and other developments," the minutes said.

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