Uncategorized

Gold Prices Creep Higher as USD Retreats, Hawkish Fed Caps Gains.

Ingot Gold in Banking Box Gold, Saving, Security System, Stacking, Vaulted Door gold bar stock pictures, royalty-free photos & images

Gold prices rose slightly on Wednesday, extending mild gains into a third session as pressure from the dollar abated, although hawkish signals from Federal Reserve officials prevented further gains.

Spot gold rose 0.1% to $1,653.49 an ounce, while gold futures rose 0.2% to $1,658.90 an ounce by 19:20 ET (23:20 GMT). Both instruments spent a second day above the key support level of $1,650, tracking a decline in the dollar.

The dollar index is trading down over 1% this week, as risk appetite improved on a series of strong earnings on Wall Street. But the greenback appeared to have curbed its losses on Tuesday following a series of hawkish comments from Fed officials.

Minneapolis fed president Neel kashkari said the Fed may push its benchmark rate above 4.75% if underlying inflation does not cool. His comments come just a few days after data showed U.S. inflation remained stubbornly near 40-year highs despite a series of sharp rate hikes this year.

Atlanta Fed President Raphael Bostic also stressed on the need to bring inflation under control, citing pressure on the labor market from rising rates and prices.

U.S . Treasury yields  after Bostic and Kashkari’s comments, as traders feared more hawkish moves from the Fed. Markets are also pricing in a nearly 100% chance  that the Fed will hike rates by 75 basis points for a fourth consecutive meeting in November.

Bullion prices tumbled from two-year highs hit earlier this year as rising interest rates greatly increased the opportunity cost of holding gold. This source of pressure is expected to persist in the near-term, given that the Fed has shown no intention of wanting to pause rate hikes.

Gold bars or ingot. Flat style isometric illustration. Lot of gold bars. Vector isometric illustration. gold bar stock illustrations

Among industrial metals, copper  prices rose slightly on Wednesday after logging three straight sessions of declines on concerns over slowing demand. But the outlook for industrial metals was dampened this week after major miners Rio Tinto (NYSE:RIO) and BHP Group (NYSE:BHP) both flagged slowing metal demand in the near-term.

The world’s two largest miners said slowing economic growth and heightened geopolitical tensions are likely to disrupt supply chains and keep metal demand depressed.

Copper futures  rose 0.1% to $3.3655 a pound, but are trading down 1.7% so far this week.

China’s signal that it will not scale back its zero-COVID policy was the biggest source of selling pressure on the red metal, as were growing fears of a U.S. recession.

Related posts
Uncategorized

Asian Stocks Dip As Markets Weigh Fed Fears, China Stimulus Hopes

Most Asian stocks retreated on Thursday amid continued concerns over rising interest rates and…
Read more
Uncategorized

Asian Stocks Edge Past Weak Economic Signals, Chinese Shares Lag

Most Asian stocks rose slightly on Wednesday as markets weighed worsening economic conditions in the…
Read more
Uncategorized

Exclusive-Accounting For War: Ukraine’s Climate Fallout

The war in Ukraine is deepening the climate crisis at time when global greenhouse gas emissions are…
Read more
Newsletter
Become a Trendsetter
Sign up for Davenport’s Daily Digest and get the best of Davenport, tailored for you. [mc4wp_form id="729"]

Leave a Reply

Your email address will not be published. Required fields are marked *