Gold remains under pressure as global equities rebound

Wednesday, May 28, 2014

Asian equity markets rebounded strongly, tracking gains in the US as risk appetite increased. The Nikkei climbed higher by 0.24%, while the Hang Seng gained more than 150 points (+0.7%) breaching above the 23100 area. The JPY remained under pressure, trading around 101.8 against the USD.

Hang Seng Index 

HSI Index (Hong Kong Hang Seng I 2014-05-28 09-02-11

The Dow Jones index and S&P 500 posted fresh gains on Tuesday, finishing the session 0.42% and 0.6% higher, as robust US economic data increased market sentiment. The USD continues its strong upside rally as the USD index tested 80.470 on Tuesday’s session, holding near an 8-week high.

S&P 500 Index

SPX Index (S&P 500 Index )  Daily 2014-05-28 09-00-16

This morning, European equity markets have been consolidating within the recent range as investors would like to remain cautious ahead of the release of German unemployment rate as well as the Eurozone’s economic sentiment and consumer confidence indicators. German import prices fell unexpectedly by 0.3% in April against estimates of a 0.1% rise.

Oil: Brent front month futures fluctuated strongly on Tuesday after having tested a low at $109.7 to close the session at $110 per barrel. The robust US economic figures provided support in late trading raising hopes about a strong rebound in the US oil demand, while the escalating crisis in Ukraine continues to dominate the market.

Precious Metals: Gold fell to a fresh 3 1/2 month low amid concerns over slowing demand from China, while strong US economic data limited the gold’s investment-hedge attraction.

XAU Spot - Gold

XAU Curncy (Gold Spot   $_Oz )  2014-05-28 09-01-05

Weather issues: Australia's approaching winter is likely to be warmer and drier than normal in many regions as climate models point to a developing El Niño phenomenon, according to the Bureau of Meteorology.

  

Events for today:

 

0700

DE

Jun

Import prices

0855

DE

May

Unemployment Rate

1000

EZ

May

Business Climate

Consumer Sentiment

 

All times UK Local Time

 

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