Gold dips as fears of conflict with Iran ease

Good Morning,

- What taper? Low rates for longer is key Fed theme for 2014.

- Debate over when the Federal Reserve could trim its bond purchases monopolized market talk this year, but as a new Fed chief takes charge, more participants believe the key theme to emphasize for 2014 is low rates for longer. For the bond market, which suffered a number of doomsday predictions for 2013 that never materialized, that means yields could also remain low.

- CHINA's benchmark 7-day SHIBOR lending rate fixed at 4.6775%, -6.3bps from yesterday. Lowest level in 8 days. Also, government sponsored Chinese Securities Journal says China should slightly loosen monetary policy. No significant $USD reaction.

- ECB's Hansson says ready to cut interest rates further. ECB policymaker Yves Mersch is due to speak at 12:30 GMT. All eyes on commentary related to possible further easing strategy.

-AUD & NZD outperforming, tracking S&P 500 futures upward as risk appetite firms before US Consumer Confidence report. Spread between Brent, WTI crude oil hit an 8mo high at $16.91 yesterday with Cushing, OK inventories last reported at a 3mo high.

- Pending home sales fall again. Signed contracts to buy existing homes fell for the fifth straight month in October, as the government shutdown added to an overall slowdown in the U.S. housing market. So-called pending home sales eased 0.6 percent from an upwardly revised September reading and are down 1.6 percent from October 2012, according to the National Association of Realtors.

-Japan's Kuroda: Positive developments spreading in Japan economy. BOJ's Kuroda speaking in Tokyo: Positive developments spreading in Japan economy. Japan CPI is likely to follow rising trend. Economy following path to price target as expected. Economy recovering moderately.

- Oil prices stabilize after Iran deal, Asian shares steady. Oil prices stabilized on Tuesday after Monday's slide as traders questioned how quickly the Iranian nuclear accord could translate into higher supplies, while the yen came off a four-year trough against the euro. Asian shares headed for a third straight session of gains, though Tokyo's Nikkei benchmark retreated from a six-month high as the yen recovered some of Monday's steep losses.

- Gold dips as fears of conflict with Iran ease. Gold prices came under pressure on Monday after the U.S. and five other world powers reached an historic agreement with Iran that would roll back that country’s nuclear program. With the threat of any imminent conflict with Iran eased for the short term, February gold GCG4 -0.45% was down $3.20, or 0.3%, to $1,241.40 an ounce.

-UK Mortgage Approvals Dip In Oct From Sep High. K mortgage approvals posted a surprise fall in October from September, British Bankers Association data showed. October mortgage approvals fell to 42,808 from 43,182 in September. While only a handful of analysts forecasts the BBA data, the consensus was for another rise in October to some 45,000. The data still show the pick-up in housing market activity of late, as the 42,808 outturn was still the second highest reading since back in January 2008 but it ends a run of seven consecutive monthly rises.

-SNB's Jordan says he regards the Franc as still overvalued, says the Franc cap remains an essential policy tool. SNB's Jordan says he is convinced that there was no alternative to capping the Franc, says Franc was massively overvalued in 2011.

- Watch today: US Consumer Confidence, US S&P Case-Schiller, US Building Permits, NZD Trade Balance.

Have a nice Day !