Gold Edges Higher As Dollar Weakens Ahead Of Fed Decision

Gold prices were flat to slightly higher on Monday as the dollar weakened ahead of key central bank meetings due this week.

Spot gold edged up 0.2 percent to $1,965.47 per ounce, while U.S. gold futures were up 0.1 percent at $1,979.50.

The dollar was down against its peers ahead of an eventful week.

Traders will pay close attention to the Federal Reserve’s monetary policy meeting scheduled from 13th June to 14th, with the U.S. central bank expected to pause its recent interest rate increases.

The Fed’s accompanying statement as well as key U.S. consumer inflation data will be key as investors look for clues about the outlook for rates.

CME Group’s FedWatch Tool currently indicates a 71.2 percent chance the Fed will leave rates unchanged on Wednesday, but a 28.8 percent chance of another quarter point rate hike in July.

Meanwhile, more Chinese banks cut deposit rates, signaling monetary easing ahead. There is a chance of China cutting its medium-term lending facility on Thursday.

Elsewhere, analysts expect the European Central Bank to hike rates by 25 bps on Thursday while the Bank of Japan is likely to maintain its current loose policy settings on Friday.

In economic releases, a report on U.S. consumer inflation expectations for May and monthly budget statement for the month of May will be out in the New York session.

U.S. reports on retail sales, industrial production and consumer sentiment may attract attention later in the week.

Optical Cable Corp. Q2 Earnings Summary

Below are the earnings highlights for Optical Cable Corp. (OCC):

Earnings: $2.423 million in Q2 vs. -$0.228 million in the same period last year.
EPS: $0.31 in Q2 vs. -$0.03 in the same period last year.
Revenue: $19.620 million in Q2 vs. $17.200 million in the same period last year.

Catalent Cuts FY23 View – Update

(Adds Outlook)

Below are the earnings highlights for Catalent Inc. (CTLT):

Earnings: -$227 million in Q3 vs. $141 million in the same period last year.
EPS: -$1.26 in Q3 vs. $0.78 in the same period last year.
Excluding items, Catalent Inc. reported adjusted earnings of -$17 million or -$0.09 per share for the period.

Analysts projected -$0.03 per share.

Revenue: $1.037 billion in Q3 vs. $1.273 billion in the same period last year.

Outlook

Looking ahead, for full year 2023, the company has revised down its outlook. CTLT now expects adjusted earnings of $169 million – $210 million against previous guidance of $187 million – $228 million.

Catalent now projects adjusted EBITDA of $700 million – $750 million, lesser than previous expectation of $725 million – $775 million.

The company now projects revenue of $4.225 billion – $4.325 billion against its previous projection of $4.250 billion – $4.350 billion.

On average, 14 analysts polled by Thomson Reuters project CTLT to register revenue of $4.28 billion for the year.

Former Italian Prime Minister Berlusconi Dies

Silvio Berlusconi, the controversial media tycoon who served as Italy’s Prime Minister for four terms, has died.

He will be given a state funeral Wednesday, state-owned public broadcaster RAI reported.

The 86-year-old leader, who has been suffering from leukemia, died at Milan’s San Raffaele Hospital on Monday.

The billionaire, who built a vast business empire that included TV networks, publishing companies, advertising agencies and football clubs AC Milan and AC Monza, entered politics in the 1990s.

Berlusconi, who once described himself as the “Jesus Christ of politics,” launched his Forza Italia party in 1994.

Italy’s longest serving post-war prime minister, Berlusconi served for a total of nine years.

His political career was marked by controversies over the decades, some of which led him to legal battles. They included charges of tax evasion, bribery and sex scandals.

In 2013 he was banned from public office for tax fraud.

Berlusconi’s death marks the end of an era in Italian politics.

Italian Prime Minister Giorgia Meloni, who was sports minister in Berlusconi’s cabinet in 2008, said he was “above all a fighter.”

Former Prime Minister Giuseppe Conte recalled Berlusconi “never lacked courage, passion, and tenacity.”

U.S. Factory Orders Climb Slightly Less Than Expected In April

The Commerce Department released a report on Monday showing new orders for U.S. manufactured goods increased by slightly less than expected in the month of April.

The report said factory orders rose by 0.4 percent in April after climbing by a downwardly revised 0.6 percent in March.

Economists had expected factory orders to climb by 0.5 percent compared to the 0.9 percent advance originally reported for the previous month.

The increase in factory orders came as orders for durable goods jumped by 1.1 percent in April after surging by 3.3 percent in March. Orders for transportation led the way higher, spiking by 3.7 percent.

Meanwhile, the report said orders for non-durable goods edged down by 0.1 percent in April after tumbling by 1.8 percent in March.

The Commerce Department also said shipments of manufactured goods fell by 0.4 percent in April following a 0.6 percent decrease in March.

At the same time, inventories of manufactured goods increased by 0.5 percent in April after sliding by 0.8 percent in the previous month.

With shipments falling and inventories climbing, the inventories-to-shipments ratio rose to 1.50 in April from 1.48 in March.

Optical Cable Up 8.25% In Pre-Market On Q2 Profit

Shares of Optical Cable Corp. (OCC) are up 8.25 percent in the pre-market trading on Monday after the company reported a turnaround to profit for the second-quarter.

OCC was trading up by 8.25 percent at $4.33 per share in the pre-market trading on the Nasdaq.

For the second-quarter, OCC posted net income of $2.423 million or $0.31 per share, compared with loss of $0.228 million or $0.03 per share a year ago.

Revenue moved up to $19.620 million from previous year’s $17.200 million.

In addition to the improved sales, OCC’s second-quarter earnings reflected a gain on insurance proceeds received for damage to property and equipment totaling $1.7 million.