Asia stocks, dollar under pressure after soft U.S. data

Asia stocks, dollar under pressure after soft US data

A rise in geopolitical risks surrounding North Korea's nuclear and ballistic missile provocations is causing a surge in gold prices and fueling trade in the precious metal, the local exchange said Sunday.

Platinum fell 1.1 percent to $962.99, while palladium was up 0.2 percent at $776. The dollar edged higher after US Treasury secretary said he saw the currency's strength over the long-term as a positive, although he agreed with Trump's view that it hurts exports in the short-term.

Data showing China's economy grew faster than expected in the first quarter helped offset the soft US figures.

USA homebuilding fell in March after unseasonably mild weather buoyed activity in February and manufacturing output dropped for the first time in seven months, further indications that economic growth braked sharply in the first quarter.

A jump in the pound to a five month high of $1.29 following Theresa May's announcement of a snap general election yesterday, saw the gold price adjust to $1,283 this morning having previously hit $1,291.98 an ounce yesterday.

He's also watching for first-quarter US economic growth on April 28. The 10-year U.S. Treasury yield was at 2.23 percent.

He pointed out that compared with the past, many fear that North Korea may be on a collision course with the United States, under the leadership of Donald Trump, who has been making clear warnings that action will be taken if Pyongyang continues to continue its weapons of mass destruction program.

Futures traders are pricing in around a 40% chance of a hike at the Fed's June meeting, according to Investing.com's Fed Rate Monitor Tool, down from around 60% last week.

Gold was trading higher in early trade on Monday after the dollar weakened with investors going for fresh positions in safe-haven assets in the wake of rising geopolitical tensions over North Korea.

The dollar has given up three quarters of the gains it had made after the Trump's surprise election victory had boosted expectations that his stimulus and deregulation plans would buoy US growth and inflation. Two polls put any of the four frontrunners, including far-right candidate Marine Le Pen and hard-left challenger Jean-Luc Melenchon, within reach of a two-person run-off vote.

Related:

Comments

Latest news

Sarah Palin knocks Elizabeth Warren for swiping her quote
It is easy to imagine a scenario where the popular Warren and her fiery populist platform sweep through the Democratic primaries. My life's work is about what is happening to working families across this country".

Life on Saturn's Moon?
NASA on Thursday revealed that conditions on Enceladus, the sixth-largest moon orbiting Saturn, may be ideal to support life. They are said to make Enceladus the only place apart from Earth where a potential energy source for life has been found.

Boris Johnson to call for tougher Russian Federation sanctions over Syria
The Trump administration said Friday that it will follow up on the attack in Syria with more economic sanctions . Haley on Saturday said Washington was ready to take additional action to the USA cruise missile attack.

Barghouti poised to win if hunger strike succeeds
Israeli authorities look to quell mass hunger strike through solitary confinement and punitive measures . Relevant to your professional network?

Other news