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Daily Analysis - 14/09/2018

Gold gains as dollar dips on soft US data

Yesterday Gold went up as the USD fell after soft U.S. inflation data lower the fact for a faster pace of policy tightening by the U.S. FED, due to the signs of movement in the China-U.S. trade talks.

Spot gold gain momentum to the bullish side about 0.4 % at $1,205.20 an ounce after hitting its highest since last month at $1,212.65 on yesterday. It gained about 0.8% so far this week and it is probably going for its first weekly gain in three.

U.S. gold futures were steady at $1,208.50 an ounce.

Head of dealing at Wing Fung Precious Metals in Hong Kong Peter Fung said “The trade negotiation is a favor to the (gold) market with the dollar a little bit soft and some shorts being covered. There is also some physical buying in Shanghai, with premiums rising “The past months of trade talks between the US and China has given investors the opportunity to buy the greenback because they believe that the US has less to lose from the possibility of a trade war.

Now the demand for the USD went down this week due to the news came out that the White House had invited Chinese officials to start the trade talks once more. China welcomed the invitation with the two economic giants now reported to be discussing the details.

Dollar fell after weak US data Turkish going up

The Greenback fell yesterday after the week U.S. inflation data, with the popular currency been already weak on signs of easing trade tensions between the United States and China.

Emerging currencies, like the Mexican peso, hold their profits having surged, as traders in emerging markets relieved that Turkey's central bank had raised the interest rate to 24% to restore confidence in the lira.

The USD took a big slap during the night after the U.S. consumer price index (CPI), the government's broadest inflation gauge, rose just 0.2% last month and less than the 0.3 % according to Reuter’s poll.

The Chief Forex strategist at Mizuho Securities in Tokyo Masafumi Yamamoto said "The dollar has sagged mainly due to the soft U.S. CPI,"

Asia markets remain mixed

Asia markets were mixed in the afternoon for the last of the week as trade tensions between the US and China continued to ease.

South Korea's Kospi gave some of its profits but still stayed higher by about 1.16%.

The Nikkei 225 lost some of its earlier profits but was still up by about 0.75% in the morning session while most of the major sectors rose.

The ASX 200 was up by more than 0.50% in the afternoon with most of its main banks profiting The AMP on the other hand lost as it continued to trade down by about 0.16%. In the Greater. The Hang Seng index grow its gains since yesterday and it is up by about 0.80% in the afternoon. On the mainland, however, markets bucked the overall positive trend. The Shanghai composite slid by 0.13 percent while the Shenzhen composite was 0.471 percent lower.

Dow jumps more than 100 points as Apple rises

Yesterday Stocks went up while Apple shares recovered from the losses had in the previous trading session. Traders and Investor sentiment was probably boosted while the fear of the possibility of rapidly rising inflation was tempered.

The Dow Jones Industrial Average went up by 147.06 points to 26,145.99 and reported a three-day winning streak. The Apple contribute the most to the profits. The Nasdaq Composite gained about 0.8% to 8,013.70 as Alphabet went up about 1%. The S&P 500 gained 0.5% to 2,904.17, led by a 1.2 % gain in tech. The broad index also rose for a fourth straight day.

However, Equities went down from their highs, after Donald Trump said there was no rush to close a trade deal with China. The Dow had gained as much as 192.71 points, while Nasdaq and the S&P 500 gain as much as 0.6% and about 1.0%, respectively.

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