February 13, 2023: Markets Await US Consumer Price Index Release

Gold Steadies Ahead of US CPI Data.

Gold prices remain steady amid investors’ anticipation of the release of the consumer price index in the United States in search of clues about the path of interest. The US Consumer Price Index is due on Tuesday, with expectations for a monthly rise of 0.5% in January and by 6.2% yearly.

The importance of this data is increasing, especially after the statements of several US Federal Reserve officials, which indicated that the bank would continue its tightening monetary policy by raising interest rates to confront inflation.

The yellow metal futures contract for April delivery settled at $ 1875.40 an ounce while the spot delivery price at $ 1864.36 an ounce.

Silver futures for March delivery rose 0.50% to $21.97 an ounce, and the spot price of platinum fell 0.21% to $947.58.

The Dollar Approaches its 5-Week High.

The dollar rose to near its highest level in five weeks against other major currencies Monday, February 13, as investors increased their bets that the US Federal Reserve will continue to tighten monetary policy for a more extended period.

The yen fell amid expectations that the Japanese government will appoint an official who supports current monetary policy as a new central bank governor tomorrow.

The Australian and New Zealand dollars declined as Asian stocks fell on fears that higher US interest rates would slow growth.

The dollar index rose 0.068% to 103.65, remaining close to last Tuesday’s high of 103.96, its highest level since January 6. The US currency rose 0.6% to 132.20 yen. The euro lost 0.09%, recording $1.06685, after touching the 1.0656 level for the first time since January 9. The pound was last traded at $1.20475, down 0.1% on the day. The Australian dollar fell 0.09% to $0.6912, and the New Zealand dollar fell 0.11% to $0.6304.

Japanese Stocks Fall Ahead of BoJ Governor Decision Tomorrow.

Japanese stocks fell in the first sessions of the week as investors await more clues about the future of US monetary policy from inflation data that will be released tomorrow. Japanese markets are awaiting more details regarding the selection of the new governor of the Bank of Japan, as that decision is scheduled to be announced tomorrow.

 Nikkei newspaper reported on Friday that Kazuo Ueda, an economist and former member of the Board of Directors of the Bank of Japan, would be appointed as the new governor of the Bank of Japan starting in April.

The Nikkei index closed at the end of the session down by 0.88% at 27427 points, and the broader Topix index fell by 0.47% to 1977 points.

And the US currency rose against its Japanese counterpart, by 0.65%, at 132.22 yen, at exactly 07:00 GMT.

Oil Prices Fell amid Demand Concerns.

Oil prices retreated after rising 2% in the previous session as investors ignored the impact of Russia’s decision to cut production and instead focused on short-term demand concerns stemming from refinery maintenance in Asia and the United States. Prices rose on Friday after Russia, the world’s third-largest oil producer, said it would cut crude production in March by 500,000 barrels per day, or about 5% of production, in response to Western restrictions on its exports imposed due to its war in Ukraine.

Brent crude futures were down 69 cents, or 0.8%, at $85.70 a barrel by 01:53 GMT after rising 2.2% on Friday. US crude was at $79.04 a barrel, down 68 cents, or 0.9%, after increasing 2.1% in the previous session.

The two benchmarks rose more than 8% last week, supported by optimism about the recovery of demand in China, the largest importer of crude in the year and the second largest oil consumer, after lifting restrictions related to combating Covid in December.

Disclaimer: This article is not investment advice or an investment recommendation and should not be considered as such. The information above is not an invitation to trade and it does not guarantee or predict future performance. The investor is solely responsible for the risk of their decisions. The analysis and commentary presented do not include any consideration of your personal investment objectives, financial circumstances, or needs.

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