Daily Market Review - 03/26/2014

Gold

Prices traded with little change on Wednesday after a soft increase overnight. The precious metal fell sharply in the past week followed by growing expectations for the Federal Reserve to wind down its bond-buying program this year and hike its benchmark interest rates somewhere around the middle of 2015.

The new Federal Reserve Chair’Janet Yellen suggested at a press conference last week that interest rates could rise six months after the Fed’s bond-buying program ends, which is widely seen taking place this fall.

Tomorrow US GDP numbers will be closely monitored by the market and by the Gold traders in particular as its one of Yallen’s key number in future decision.

Market Overview

Appetite for risk spread Wednesday followed by an overnight upbeat economic data out of the U.S and reduces tension between Russia and the west.

In a meeting that held in yesterday between Western leaders and Russia It was agreed that U.S. President Barack Obama and his allies will hold off more damaging economic sanctions unless Moscow goes beyond the seizure of Crimea. The facts that the 2 party’s were able to reach some kind of a “status-qou” encourage the market which sparked higher.

The news that Moscow’s and Kiev’s foreign ministers had held an “effective” first meeting also led investors to believe the crisis triggered by Russia’s annexation of Crimea is not heading into a wider armed conflict.

On the macro front, U.S. consumer confidence rose more than expected in March, climbing to its highest level since January 2008.

The U.S. house prices missed slightly analyst expectations but the broader U.S housing markets looks in a considerably better condition than it was a year ago.

Both reports added more credence to the view that softness seen earlier this year was related to inclement weather and not economic weakness.

The Asian exchanges ended mix to positive on Wednesday as risk appetite returned follow yesterday developments as well as increase expectation that the Chinese government will introduce a fresh new stimulus to support their economy softness.

The major economic announcement for today is expected at 12:30GMT with the publication of the US durable goods orders. The rest of the calendar holds no major announcements.

The Ukraine situation will continue to dominant the headlines especially during the European session which are affected directly by any development in region.

The post Daily Market Review – 3/26/2014 appeared first on Citrades.