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The main Shanghai silver futures contract rose 2.97% intraday, last quoted at 16,105 yuan/kg, with an increase of nearly 3,100 lots in open interest, and both trading volume and open interest activity increased.September 17 – The 10th China-Australia (Australia) Defence Working Meeting was held in Beijing on September 17. The two sides exchanged candid and in-depth views on military relations, maritime and air security, and international and regional issues of common concern, enhancing mutual understanding and trust.On September 17th, when asked whether it was reasonable for the market to price in nearly four interest rate hikes within the next year, Bank of England Governor Bailey said on Thursday that the outlook was too unpredictable, adding that his officials had not yet discussed this. "Weve had a lot of discussions this time, but we havent discussed the prospect of four rate hikes," Bailey told the media after the Bank of England kept interest rates unchanged but warned of rising inflationary pressures. He added, "The market has to form its own judgment, but I must point out: the current situation... is simply too unpredictable." Bailey stated that the state of the UK gilt market—with the 30-year gilt yield hitting its highest level since 1998 this week—did not influence the banks announcement. Bailey said, "We planned this work long before the Middle East conflict, so this is not at all a reaction to market conditions."Industry data and Reuters calculations show that Russias seaborne petroleum product exports rose 16.4% in August compared to July, but fell 50% year-on-year.The U.S. pending home sales index fell 4.9% year-over-year in August, compared with a forecast of -3.9% and a previous reading of -2.50%.

As Fed Uncertainty Continues, Gold Drops Below $1,700 and Copper Falls

Haiden Holmes

Sep 15, 2022 10:44

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On Thursday, spot gold prices fell below a key support level, extending previous declines as fears of more aggressive Federal Reserve operations continued to undermine metal markets.


Spot gold closed the previous session near $1,697.42 per ounce, while gold futures fell 0.1% to $1,730 per ounce by 19:46 ET (23:46 GMT).


Thursday's release of U.S. producer price inflation data revealed that in August, inflation remained close to its highest level in the past four decades. As the Fed strives to alleviate heightened price pressures, it is possible that future sudden interest rate increases will occur.


This week, U.S. consumer price inflation, a closely monitored indicator, topped August projections. The reading prompted the financial market losses on Tuesday and Wednesday.


Traders currently predict a one-percentage-point rate hike from the Fed the following week, although they believe a 75-basis-point increase is more likely.


Gold is currently trading roughly $15 above its lowest levels of the year, as a series of rapid Federal Reserve interest rate hikes pushed the currency higher and investors sought greater yields in the dollar and Treasuries. The yellow metal has again lagged significantly behind U.S. inflation this year.


As market participants think that U.S. interest rates will exceed 4% by the end of 2022, bullion prices are expected to be under pressure throughout the year.


The majority of additional precious metals have likewise declined in value.


Copper futures were depressed following two consecutive days of decline. Similar to gold, red metal prices were severely impacted by higher-than-expected U.S. inflation estimates.


Globally rising interest rates are predicted to limit economic growth, which is negative for copper given its importance in infrastructure construction.


Copper prices may climb in the near future due to a strike at Escondida, the largest copper mine in the world.

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