Geopolitical tensions have supported gold prices, allowing the yellow metal to stay above 1550. Negotiations between Iran and the IAEA representatives stalled with several envoys walking out for sometime after Iran accused Israel of genocide. In Northeast Asia, tensions in the Korean Peninsula intensified as North Korea’s Kim Jong-un unilaterally announced to end the armistice signed in 1953. Both the ECB and the BOE would hold meetings today. While the ECB would be more likely to hold its stimulus unchanged, the BOE would be more uncertain as policymakers split on whether to increase or to maintain the current asset purchase program.
Representatives from the US, Canada, New Zealand and Australia walked out of the negotiation table for a few hours as Iran's Ali Asghar Soltanieh accused Israel of having "a dark record of genocide". U.S. envoy Joseph Macmanus blamed Iran of “inviting further isolation, pressure and censure from the international community ... until it meets its obligations and addresses the board's concerns”. While the US and its allies have planned for more sanctions on Iran, China reiterated its opposition to imposing these sanctions against Iran over its nuclear energy program. China's deputy permanent representative to the United Nations Wang Min stated that “China is always firmly against use or threat of use of force. We are not in favor of putting excessive pressure or new sanctions against Iran”.
Earlier in the week, North Korea threatened the end the 60-year armistice following the Korean War. The hermit kingdom stated that it would "launch surgical strikes at any time and any target without being bounded by the armistice accord". South Korea responded by announcing that it would launch “resolute retaliations" should the country be threatened. Despite North Korea’s move, the UNSC is expected to continue to vote on further sanctions against North Korea’s nuclear development and its successful nuclear test last month. It is anticipated that the resolution would be approval as China has agreed to vote in favor of it.
The ECB is expected to leave its main refi rate unchanged at a record low of 0.75% in March. While not likely related to the policy decision, some German newspaper suggested that policymakers have queried about the central bank‘s independence as it has done excessively on the course of resolving the Euzoeon sovereign debt crisis. Some news headline even stated that the ECB is considering leaving the Troika. This was, however, denied later. Concerning the BOE meeting, sterling declined to the lowest level in 2 years against the US dollar amid higher speculations that the BOE might increase of the size of asset purchases after the February minutes showed that 3 out of 9 MPC members, including current Governor Mervyn King favored additional QE.
Latest Analysis from this Author
Gold Weekly Technical Outlook (Saturday, 16 March 2013 10:05 ET)Silver Weekly Technical Outlook (Saturday, 16 March 2013 10:05 ET)Crude Oil Weekly Technical Outlook (Saturday, 16 March 2013 10:05 ET)Natural Gas Weekly Technical Outlook (Saturday, 16 March 2013 10:04 ET)Weekly Fundamentals - WTI- Brent Spread Narrowed o... (Saturday, 16 March 2013 02:38 ET)Strong US Data Sent Shares to New Highs (Friday, 15 March 2013 01:03 ET)Economic Calendar 3/15/13 (Thursday, 14 March 2013 22:13 ET)IEA Lowered Global Oil Demand Growth Forecast for ... (Thursday, 14 March 2013 08:50 ET)Crude Weakened on Inventory Increase (Wednesday, 13 March 2013 23:14 ET)Economic Calendar 3/14/13 (Wednesday, 13 March 2013 23:12 ET)
No comments:
Post a Comment