The meet, which includes central bankers from across the world, will start on Thursday and has traditionally been a platform for the Fed to signal the direction of monetary policy.
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Federal Reserve chair Janet Yellen will be a key speaker and any indication a USA rate rise is coming would likely be bad for gold as the metal traditionally moves counter to interest movements.
USA stocks moved higher in sympathy with shares in Europe, which got a boost from the latest reading from a closely watched purchasing managers index, or PMI, which showed a slight rise but enough to top economists’ expectations.
The Australian and New Zealand dollars were stronger, with AUD/USD up 0.28% at 0.7641 and with NZD/USD advancing 0.71% to 0.7324. Brent crude, used to price worldwide oils, tumbled $.158 to $49.30 per barrel in London. The kiwi nevertheless rose to a 15-month high of $0.7351 mid-month. USA stocks were poised to open higher, with Dow futures up 0.2 percent to 18,551.00 and broader S&P 500 futures rising 2,185.40.
USA stocks rose modestly on Tuesday, as gains in the tech sector helped buoy the Nasdaq to a record intraday high and solid housing market data provided more evidence the economy may be picking up momentum. But some investors are betting that the US central bank may act as early as September after some Fed officials gave hawkish comments pertaining to the state of the economy. The loonie closed Monday at 77.22 cents United States after dropping a full cent over two trading days.
Oil fell as industry data showed U.S. crude stockpiles expanded, adding to a global glut of supply.
Meanwhile the price of oil is keeping investors on their toes as crude futures continue to fall.
The number of active US oil rigs increased by 10 last week, according to Goldman Sachs, which said the total figure is now up 28% since its low point in May. The two-year price rose 2.5 Canadian cents to yield 0.56 percent and the benchmark 10-year climbed 35 Canadian cents to yield 1.041 percent. USA benchmark crude dropped 58 cents to $46.82 a barrel in electronic trading on the New York Mercantile Exchange. New York Fed president William Dudley said last week a rate hike would be possible at the Fed’s next policy meeting in September.
The dollar rose to 100.29 Japanese yen from 100.24 on Friday.
“While we expect the dollar to rebound in coming days, as recently built short dollar positions are likely to be squared off ahead of the symposium, the currency could weaken again on even a subtle shift in Yellen’s views”. Treasury 10-year notes were little changed, while moving in their tightest monthly trading range since 2006.
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In Tokyo trade, the dollar bought 100.66 yen, rising from 100.20 yen in New York Friday.
