Commodity Prices: Gold Hits Lowest level in 2019
COMMODITY PRICES – On Monday, gold prices slipped to their lowest level in 2019. Further, this was amid the holding up of investor appetite for risk even though there was a slowdown with a near three-decade low in China’s economic growth last year.
As of 7:40AM ET (12:40 GMT), the Comex gold futures declined $5.35, or around 0.4%, to trade at $1,277.25 a troy ounce. The yellow metal recorded a $1,276.80 low, its weakest level since December 28.
On Monday, US floor trading will not be available because it is the Martin Luther King Day holiday in the US. The booking for all electronic transactions will be available with Tuesday’s trades for settlement.
Meanwhile, the spot gold dropped 0.3% or $3.50 to trade at $1,278.11. The fourth-quarter gross domestic product (GDP) of China moved at the slowest track since the global financial crisis. Moreover, the GDP data dropped to 6.4% on-year in line with expectations from the third quarter’s record of 6.5%. This was according to the National Bureau of Statistics.
Through it, the full-year growth dropped to 6.6%, the slowest annual pace since 1990. Further, this was amid a balanced assessment of the weakening domestic demand and bruising US tariffs.
The weak data backed the view that China needs to add more stimulus to avoid a sharper slowdown.
Meanwhile, investors have been focusing their attention on the announcement of British Prime Minister May’s Plan B for Brexit. The presentation for the Plan B to parliament is due later in the data.
At 15:30 GMT (10:30 AM ET), May is set to make a statement in parliament. Further, this was amid her move to secure a new withdrawal agreement before the deadline on March 29.
Commodity Prices: Oil prices slip amid China’s warning of job losses
On Tuesday, oil prices dropped 1% amid signals of a widening slowdown in the global economy. Moreover, this triggered concerns over the future of the fuel demand.
As of 0601 GMT, the oil futures of the International Brent crude dropped 65 cents or 1% to trade at $62.09 per barrel.
US West Text Intermediate (WTI) crude futures dropped 58 cents or 1.1% to trade at $53.22 per barrel.
Meanwhile, Beijing state planner imposed warning on Tuesday about the impact of the downward pressure on the economy. Further, there’s a chance that it will affect particularly the job market in China. This was amid the declining factory orders that depict additional fall in activity in coming months and more job losses.
China reported on Monday about its slowest annual economic growth since 1990.