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Trends & Analysis
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Trends & Analysis
News

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News

Buy the JPMorgan dip?

News

Goldman Sachs shares surge after earnings beat

News

Keep an eye on these key S&P 500 levels

News

US big banks report better-than-expected earnings

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Crude oil declines on profit taking

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Gold tops $2,200 ahead of US inflation report

Thursday, March 28, 2024

Today’s headlines

What’s happening: Gold prices recorded gains on Wednesday, surging past the key $2,200 resistance level.

What happened: Gold prices moved higher on Wednesday, as investors awaited a key report on US inflation data.

Gold imports by India, the world’s second-biggest buyer of the yellow metal, are projected to decline sharply in March.

Why it matters: At its meeting last week, the US Federal Reserve kept its benchmark interest rates unchanged but signalled rate cuts ahead. Markets widely expect the US central bank to begin cutting interest rates in June. Lower rates reduce the opportunity cost of holding the non-yielding bullion, boosting demand.

India’s gold imports are projected to dip by more than 90% from the prior month in March to reach their weakest level since the pandemic, after banks in the country slashed their imports of the yellow metal due to record high prices.

Strength in the US dollar limited the overall gains for the yellow metal, as a higher greenback makes metals, including gold, more expensive for foreign currency holders. The US dollar index, which measures the greenback’s performance versus a basket of major peers, added around 0.1% to 104.35 on Wednesday.

Gold for April delivery settled higher at $2,212.70 per ounce on Wednesday.

In other metals trading, silver for May delivery gained 13 cents to close at $24.75 per ounce. However, May copper slipped 1 cent to $4 per pound, platinum fell more than 1% to settle at $909.7 and palladium settled lower at $991.00.

What to watch: Investors await the release of the US Core Personal Consumption Expenditures Price Index, scheduled for release on Friday. The Core PCE price index, which rose by 0.4% in January, the most since February 2023, is expected to increase by 0.3% in February.

Data on US GDP growth and weekly initial jobless claims, due to be released today, will also remain in focus.

The markets today

The Canadian dollar will be in focus today ahead of a basket of major economic reports

Context: The CAD/USD forex pair moved higher on Wednesday, despite some weakness in crude oil prices.

Details: Data released on Tuesday showed wholesale sales in Canada increasing by 0.8% in February, higher than the 0.1% rise recorded in January, according to preliminary reading.

Some weakness in the price of crude oil, one of Canada’s major experts, limited the gains for the loonie on Wednesday. WTI crude oil prices fell 27 cents to settle at $81.35 per barrel, after trading higher earlier in the session.

The US dollar index edged higher, weighing on the CAD/USD on Wednesday. The forex pair settled at 1.3568 on Wednesday. The S&P/TSX Composite Index gained 0.89% to close at 22,107.08, as investors assessed recent comments from Bank of Canada officials.

What to watch: Investors await the release of data on CFIB’s business barometer, GDP and average weekly earnings from Canada today. CFIB’s Business Barometer in Canada, which increased by 6.1 points to 54.9 in February, is expected to decline to 52 in March.

Canada’s economy is expected to expand by 0.4% in January, while average weekly earnings of non-farm payroll employees in the country are projected to increase by 3.9% year-over-year in January.

Other Markets: US trading indices closed higher on Wednesday, with the Dow Jones index, S&P 500 and Nasdaq 100 up by 1.22%, 0.86% and 0.39%, respectively.

The news shaping the markets

Ukrainian President Volodymyr Zelenskyy appointed Oleksandr Lytvynenko as the head of the National Security and Defence Council after dismissing Oleksii Danilov. The news sent the RUB/USD pair higher in forex trading this morning.


Singapore bank loans rose to S$801.5 billion in February, from S$794.3 billion a month ago, lending support to the SGD/USD forex pair.


Australia’s consumer inflation expectations eased to 4.3% in March, from 4.5% in the previous month, sending the AUD/USD pair higher in forex trading this morning.


New Zealand’s ANZ Business Outlook Index plunged to 22.9 in March, from 34.7 in February. This signalling the weakest reading since September 2023 exerted pressure on the NZD/USD forex pair.


Colombia’s unemployment rate rose to 11.7% in February, from 11.4% in the year-ago month, which sent the COP/USD pair lower in forex trading this morning.

What else to watch today

Saudi Arabia’s unemployment rate, value of loans and money supply M3, South Africa’s money supply M3, private sector credit, government budget value and balance of trade, Germany’s retail sales, Turkey’s economic confidence index, foreign exchange reserves and Central Bank of Turkey MPC meeting summary, UK’s current account deficit, GDP growth rate and business investment, Germany’s number of unemployed individuals, unemployment change and jobless rate, Eurozone’s loans to non-financial corporations, bank lending to households and money supply M3, Italy’s manufacturing confidence index, consumer confidence index and producer price inflation, South Africa’s producer price inflation, Brazil’s unemployment rate, India’s external debt, as well as US continuing jobless claims, core personal consumption expenditure price index, Chicago business barometer, University of Michigan consumer sentiment, pending home sales, natural gas stocks change, Kansas City Fed’s manufacturing production index, Kansas City Fed’s composite index, Baker Hughes crude oil rigs and Baker Hughes total rigs.


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