Asian equities fluctuate, gold resilience prevails

Inflation and crude reserves data: Catalysts for potential volatility in gold and oil markets

By Farah Mourad | 27 March 2024

Market open
  • USDJPY nears 152.00, with the Swiss franc and US dollar lead gains

  • Gold attracts buying interest during the Asian session

  • European session opens on a positive note

Today's sentiment across Asian markets has been a mixed bag, with Japanese indices posting gains while Chinese stocks faced downward pressure. However, as the European session unfolds, a more positive tone emerges.

In the currency market

The USDJPY pair is hovering slightly below the 152.00 zone, marking its highest level since 1990. Notably, the Swiss franc and the US dollar are currently exhibiting strength, outperforming other major currencies. While the British pound and the Japanese yen are experiencing downward pressure.

It seems that the Bank of Japan is likely to maintain its accommodative monetary policy stance for the foreseeable future.

In the commodities market

The American Petroleum Institute (API) has reported a significant increase in US crude reserves, surpassing earlier expectations. This news sets the stage for potential volatility as the Energy Information Administration (EIA) releases its own data on crude oil inventories later today.

Meanwhile, gold prices have attracted buying interest during the Asian session, managing to hold off a late pullback from the $2,200 psychological level.

Looking ahead, Friday holds importance for gold traders, as key economic indicators such as the Personal Consumption Expenditures (PCE) inflation data will be released, alongside remarks from Federal Reserve Chair Jerome Powell. As seasonal patterns suggest a potential continuation of upward momentum, if supported by more dovish tone from the Federal Reserve, gold could extend its rally.

Seasonal patterns suggest a potential continuation of upward momentum on gold