Palladium sharpens decline to below $1000 an ounce
Palladium prices fell on Friday as the dollar rose against most major rivals, sharpening losses to below $1000 an ounce near five-year lows.
Chinese government asserted its plans to boost local demand and economic recovery in 2024, with Chinese passenger car sales surging by 25.5% in November.
Chinese exports grew for the first time in six month during November, with copper imports growing 10.1% to two-year highs.
At the London Exchange, aluminium rose 1.1% to $2156 a tonne, while nickel rose 1.8% to $16,810, as zinc rose 0.5% to $2419, while lead rose 0.8% to $2034, while tin added 0.3% to $24750.
Otherwise, the dollar index rose 0.5% as of 16:41 GMT to 104.06, with a session-high at 104.2, and a low at 103.4.
Palladium March futures rallied 3.2% in American trade as of 16:41 GMT to $949.5 an ounce.
Will the US payrolls report pave the way for early Fed interest rate cuts in 2024?
Markets today await the crucial US payrolls report to gauge the strength of the US labor sector and the likely path ahead for US monetary policies.
The report enumerates the number of new jobs added to the market in November, and the unemployment rate.
Investors will rely on the report to change their pricing for interest rate decisions in the months to come by the Federal Reserve.
The report is even more important as it comes following a series of weak US data, including slowing consumer prices data.
A string of bearish remarks by Fed officials in recent days also confirmed the end of the current cycle of policy tightening and paved the way for early interest rate cuts in 2024.
The question now revolves around the US payrolls report and whether it'll boost the case for early interest rate cuts in 2024.
US Inflation
US consumer prices rose 3.2% in October, below estimates of 3.3%.
Core prices rose 4% in October, the slowest pace in two years and down from 4.1% in the previous reading.
Such data clearly shows the decline of inflationary pressures on the Federal Reserve as consumer prices approach the 2% target.
Cautious Remarks
Fed Chair Jerome Powell said on Friday that it's clear the monetary policy is slowing the economy down as expected, with interest rates reaching appropriate tightening levels, however he still opened the way for further policy tightening if needed
New York Fed President John Williams said on Thursday that interest rates have peaked out and reached proper levels to control inflation.
San Francisco Fed President Mary Dale said that interest rates are in a very good place to control inflation, but cautioned it's still too early to talk about rate cuts.
US Rates
The odds for a Fed interest rate hike at the December meeting stood at just 2%.
Odds for an interest rate cut at the Fed March 2024 meeting stood at 60%, while odds for such a cut at the May meeting stood at 85%.
US Jobs Data
Now investors await the all important US payrolls data in November, with the economy expected to have added 336 thousand new jobs in October.
The unemployment rate is expected at 3.9%, while average hourly earnings are expected up 0.3% last month.
Estimates
Obviously positive jobs data will showcase the resilience of the US economy and could delay bets on early interest rate cuts in 2024, in turn boosting the dollar, and vice versa.
Dollar resumes gains ahead of US jobs data
Dollar rose in European trade on Friday against a basket of major rivals, resuming gains and approaching three-week highs ahead of US jobs data.
The data will provide fresh clues on the likely path ahead for the Federal Reserve's monetary policies.
The Index
The dollar index rose 0.15% to 103.80, with a session-low at 103.44, after losing 0.5% yesterday on profit-taking away from a three-week high at 104.23.
USD/JPY lost 2% on Thursday after bullish remarks from Bank of Japan Governor Kazuo Ueda boosted the chances of an early exit from Japanese negative rates schemes.
The index remains up 0.6% so far on track for the first weekly profit in a month ahead of the crucial US payrolls report.
US Rates
The odds for a Fed interest rate hike at the December meeting stood at just 2%.
Odds for an interest rate cut at the Fed March 2024 meeting stood at 60%, while odds for such a cut at the May meeting stood at 85%.
US Jobs Data
Now investors await the all important US payrolls data in November, with the economy expected to have added 336 thousand new jobs in October.
The unemployment rate is expected at 3.9%, while average hourly earnings are expected up 0.3% last month.
Gold edges up ahead of US jobs data
Gold prices rose in European trade on Friday for the third straight session ahead of US monthly jobs data.
The data will provide fresh clues on the future of US interest rates and monetary policies in 2024.
Gold Prices Today
Gold prices rose 0.3% to $2,034 an ounce, with a session-low at $2,026, after rising 0.2% yesterday as the dollar lost ground against rivals.
Gold is down 1.8% so far this week on track for the first weekly loss in a month on profit-taking away from a record high at $2,146 an ounce.
US Rates
The odds for a Fed interest rate hike at the December meeting stood at just 2%.
Odds for an interest rate cut at the Fed March 2024 meeting stood at 60%, while odds for such a cut at the May meeting stood at 85%.
US Jobs Data
Now investors await the all important US payrolls data in November, with the economy expected to have added 336 thousand new jobs in October.
The unemployment rate is expected at 3.9%, while average hourly earnings are expected up 0.3% last month.
The SPDR
Gold holdings at the SPDR Gold Trust fell 0.28 tonnes yesterday to a total of 880.55 tonnes.