Demand for gold

Demand for gold has dropped in the first quarter of 2014, weighing on the price of the precious metal. On Tuesday, the World Gold Council released a report which found that global demand for gold had dropped in Q1 to its lowest level in four years. Demand for the metal by China, the largest buyer of gold, slipped by 18% in Q1, and other major purchasers such as India also recorded a drop in demand. Gold tends to react to geopolitical events, and the ongoing crisis in Ukraine could continue to cause volatility in gold prices.
In the US, key indicators have been generally strong, and last week ended with encouraging housing numbers. Building Permits jumped to 1.08 million, well above the estimate of 1.01 million. This was the highest level we’ve seen since December 2006. Housing Starts continues to move higher and climbed to 1.07M, compared to the estimate of 0.98M. This marked a five-month high. Meanwhile, UoM Consumer Sentiment dipped to 81.8 points, short of the estimate of 84.7 points.

Japanese yen USD/JPY

The Japanese yen is showing little movement on Wednesday, as USD/JPY trades in the mid-101 range late in the European session. In Japan, the BOJ issued a relatively upbeat policy statement and said it would maintain current monetary policy. The Japanese current account deficit improved, but still fell short of the estimate. In the US, the Federal Reserve will release the minutes of its recent policy meeting.
There were no surprises from the Bank of Japan policy statement on Wednesday. The Bank noted that the economy continues to recover at a moderate pace, and said that monetary policy would not change. The BOJ has been purchasing 60-70 trillion yen/year in asset purchases, and this aggressive monetary stance has raised inflation and growth levels, but has severely hurt the yen, which continues to trade above the 100 level.

Losses for the Australian dollar

 Losses for the Australian dollar against major currencies continue into the US session, leading all G-10 movers. Earlier in the day, Reserve Bank of Australia assistant governor Guy Debelle said he expects lower capital inflows from mining, which have been supporting the currency. The New Zealand dollar continues to follow the Aussie lower. The Australian dollar has fallen 0.8% against the greenback, to US$0.9257, and down 0.8% against the yen, to Y93.85. Kiwi down 0.6% against the buck, to US$0.8576, and down 0.7% against the yen, to Y86.93.

growth concerns

As geopolitical and global growth concerns ramp up, investors have been shifting assets in directions that hurt the dollar. Those global worries have trumped solid US data, leading investors to buy US Treasurys and unload their long-dollar positions, particularly with the yen,The dollar remains near three-month lows against the Japanese currency, down 0.4% at Y101.17. The euro sits 0.2% higher against the greenback, at $1.3725. Ten-year Treasurys up 4/32 to yield 2.504%.

African investors

African investors also continued to boost their presence on the continent, representing 18% of total investment in new -or "greenfield"- projects in 2012, up from 7% in 2007. Unlike their foreign counterparts, who directed most of their attention to the mining sector, investors from the continent preferred financial services, construction and communication projects.
A combination of foreign direct investment, portfolio investment in stock and debt, growing remittances from workers sending money home and improved tax revenues has meant that the continent's overall dependence on foreign aid will continue to shrink as a proportion of its external financing, the report showed. Foreign aid as a proportion of total foreign capital inflows to Africa was set to decline to about 26% in 2014 from 30% the year before, the report said. But foreign aid will continue to increase this year to reach about $55 billion and the poorest African nations rely on it to survive.