Gold Extends Downward Trend, Falling To Two-Month Low
Gold prices moved to the downside during trading on Thursday, extending the downward trend seen over the past two weeks.
The price of gold for April delivery fell $14.70 or 0.8 percent to $1,826.80 an ounce after edging down $1 or 0.1 percent to $1,841.50 an ounce in the previous session.
With the decrease, the price of gold closed lower for the fourth straight session, falling to its lowest closing level in two months.
An uptick in the value of the U.S. dollar contributed to the continued weakness of gold, with the U.S. dollar index inched up by 0.1 percent to another new one-month high.
Concerns about the outlook for interest rates also continued to weigh on the precious metal following yesterday’s release of the minutes of the latest Federal Reserve meeting.
The Fed minutes offered few surprised but reiterated that the central bank will continue to raise interest rates in its battle against inflation.
With the Fed warning about the impact of labor market tightness, negative sentiment may also have been generated in reaction to a Labor Department report showing an unexpected dip in first-time claims for U.S. unemployment benefits in the week ended February 18th.
The report said initial jobless claims edged down to 192,000, a decrease of 3,000 from the previous week’s revised level of 195,000.
The dip surprised economists, who had expected jobless claims to inch up to 200,000 from the 194,000 originally reported for the previous week.
European Economic News Preview: UK Retail Sales Data Due
Retail sales data from the UK is the top economic news due on Friday, headlining a light day for the European economic news.
At 2.00 am ET, the Office for National Statistics releases UK retail sales data for January. Sales are forecast to fall 0.3 percent on month, slower than the 1.0 percent decline in December.
In the meantime, Destatis is set to issue Germany’s producer prices for January. Economists expect producer price inflation to ease to 16.4 percent from 21.6 percent in December.
Half an hour later, Swiss industrial production for the fourth quarter is due.
At 2.45 am ET, France’s Insee is slated to release final consumer and harmonized prices for January. Consumer price inflation is expected to rise slightly to 6.0 percent, in line with flash estimate, from 5.9 percent in December.
At 4.00 am ET, the European Central Bank is slated to issue euro area current account for December. The current account surplus totaled EUR 13.4 billion in January.
1.2 Million Candles Sold Exclusively At Walmart Recalled Due To Risk Of Fire, Injury
More than 1.2 million Mainstays three-wick candles, which were exclusively sold at Walmart, have been recalled by Star Soap Star Candle Prayer Candle due to the risk of fire and laceration.
According to the Consumer Product Safety Commission, the candle wicks can burn too close to the side of the container, causing the glass to break, posing fire and laceration hazards.
The company said it has received 12 reports of the candle burning too close to the side of the container and the glass cracking, resulting in one report of a minor cut and multiple reports of damage to nearby items. The firm has received one report of a fire.
The recall involves Mainstays Three-Wicked Candles in round 14-ounce glass jars sold with Halloween and autumn themes. The candles were sold with a metal lid and in seven different names: Jack-O-Lantern, Mystic Fog, Warm Apple Pie, Warm Fall Leaves, Fall Farm House, Pumpkin Spice, and Magic Potion. Mainstays and the candle’s name are printed on the side of the candle. The candles are about 4 inches long by 4 inches wide.
The company has asked customers to immediately stop using the recalled candles and contact Star Soap Star Candle Prayer Candle to receive a full refund.
The candles were sold exclusively at Walmart stores nationwide and online from September 2022 through November 2022 for about $7.
Crude Oil Show Notable Rebound Despite Surge In Inventories
After trending lower over the past several sessions, the price of crude oil showed a strong move back to the upside during trading on Thursday.
Crude for April delivery spiked $1.44 or 2.0 percent to $75.39 a barrel on the day, snapping a six-session losing streak.
“It looks like oil has been beaten up enough,” said Edward Moya, senior market analyst at OANDA. “Crude has been forming a range between the $73 to $83 region and that should hold up, with the risks being to the upside.”
The notable rebound by the price of crude oil came even though the Energy Information Administration released a report showing a much bigger than expected increase in U.S. crude oil inventories.
The EIA said crude oil inventories surged by 7.6 million barrels in the week ended February 17th compared to economist estimates for an increase of 2.1 million barrels.
The report said distillate fuel inventories also jumped by 2.7 million barrels, while gasoline inventories fell by 1.9 million barrels.
Treasuries Recover From Early Weakness, Close Firmly Positive
After coming under pressure early in the session, treasuries showed a notable turnaround over the course of the trading day on Thursday.
Bond prices climbed well off their early lows and firmly into positive territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 4.4 basis points to 3.879 percent after reaching a high of 3.978 percent.
The rebound by treasuries may have reflected bargain hunting, with the turnaround coming after the ten-year yield reached its highest level in over three months.
Traders may also have taken comfort from the perception that the minutes of the latest Federal Reserve weren’t more hawkish.
The Fed minutes offered few surprised but reiterated that the central bank will continue to raise interest rates in its battle against inflation.
Meanwhile, bond traders largely shrugged off a Labor Department report showing an unexpected dip in first-time claims for U.S. unemployment benefits in the week ended February 18th.
The report said initial jobless claims edged down to 192,000, a decrease of 3,000 from the previous week’s revised level of 195,000.
The dip surprised economists, who had expected jobless claims to inch up to 200,000 from the 194,000 originally reported for the previous week.
Trading on Friday may be impacted by reaction to a report on personal income and spending, which includes a reading on inflation said to be preferred by the Federal Reserve.