EUR/USD 1.16637
-0.125%
Gold 4654.48
0.815%
Oil 84.551
-2.015%
USD/JPY 159.084
0.056%
GBP/USD 1.36313
-0.112%
GBP/JPY 216.859
-0.055%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On August 25th, former Bank of Japan official Seiji Adachi stated that the Bank of Japan is very likely to raise interest rates next month, confirming widespread market predictions. In an interview, Adachi said, "The Bank of Japan is essentially in a dilemma. The market has largely priced in a rate hike. If the central bank doesnt raise rates, the yen could weaken significantly again." This comes after US Treasury Secretary Bessant indicated that policy action was needed after foreign exchange intervention and expressed hope that Bank of Japan Governor Kazuo Ueda would raise interest rates. "Bessant has repeatedly hinted that the Bank of Japan will be the next institution to take action," Adachi said. "Given this, the government cannot tell the Bank of Japan dont do it." Adachi pointed out that Japans inflation momentum is strong, and after the expected rate hike in September, the Bank of Japan is likely to continue raising rates. He stated, "I think the Bank of Japan will act again in January next year, and the rate hike cycle is very likely to continue for some time, even exceeding the previously considered end point of the cycle at 1.25% or 1.5%."Boeing (BA.N) has contracts related to foreign military sales projects, with customers including Japan, Israel, Saudi Arabia, South Korea, Singapore, Indonesia, and Poland.Boeing (BA.N) has been awarded a contract worth up to $131.2 billion for the U.S. Air Forces F-15 Eagle Crest program. The contract is expected to expire on August 24, 2031, with an option to extend to August 24, 2036.Sources say JPMorgan Chase (JPM.N) and Santander are leading a financing round of up to $15 billion for Argentina’s liquefied natural gas project.On August 25th, Iranian Foreign Ministry Spokesperson Baghae held a press conference on August 24th, addressing regional issues and Iran-US relations. Baghae emphasized that Iran has the right to strike at all sources of aggression, and that the US threat to impose a new round of sanctions on Iran is a serious violation of international law. Regarding the US threat to impose so-called "toughest sanctions" on Iran, Baghae stated that the Iranian government understands the current economic pressures and business difficulties it faces domestically, which are part of the pressure the US has exerted on the Iranian people over the past decades. The Iranian government had previously assessed the situation and is taking all necessary measures to counter the economic sanctions. He condemned the US for calling its sanctions against Iran "economic warfare," stating that this demonstrates the USs disregard for the free trade system between nations and national sovereignty.

Copper Beats Gold This Week With Fears of A Rate Rise

Haiden Holmes

Feb 17, 2023 11:44

125.png


Gold prices declined on Friday as stronger-than-expected U.S. inflation statistics and hawkish statements from Federal Reserve officials stoked fears of more interest rate rises, while copper prices outpaced commodity markets this week due to confidence towards China.


The U.S. producer price index inflation increased more than anticipated in January, according to statistics released on Thursday. This follows a report on the consumer price index that indicated inflation in the world's largest economy remained sticky.


James Bullard, president of the Federal Reserve Bank of St. Louis, stated that the central bank might resume raising interest rates at a more rapid pace and raised the possibility of a 50 basis point increase in March.


Meanwhile, Loretta Mester, president of the Cleveland Fed, stated that interest rates would likely rise over 5% as the Fed fights inflation, and that the central bank should have increased rates by more than 25 basis points at its February meeting.


The dollar and Treasury rates soared in response to their remarks, as investors flocked to the greenback in anticipation of higher and safer returns. This caused a substantial outflow from gold markets.


Spot gold decreased 0.2% to $1,833.67 per ounce, whilst gold futures declined 0.5% to $1,843.75 per ounce. Prices of the yellow metal were projected to fall between 1% to 1.7% this week, marking the third consecutive week of declines.


The likelihood of rising U.S. interest rates is unfavorable for non-yielding assets such as gold, as it increases their opportunity cost. Increasing interest rates also cause investors to select the dollar as a safe-haven asset due to its higher yields.


Other precious metals declined on Friday. Platinum prices dropped 0.6% to $920.30 per ounce, a three-month low, while silver futures sank 1.2% to $21.448 per ounce, a two-and-a-half month low.


Copper prices declined on Friday but were expected to end the week in the black due to optimism on China and probable supply disruptions.


Copper futures slipped 0.2% to $4.1137 a pound and were expected to rise 2.4% this week, their highest weekly performance since the beginning of January.


Copper was also poised to end a streak of three consecutive weekly losses as China, the world's top copper importer, signaled further stimulus measures to bolster economic development. Earlier this year, China loosened the majority of anti-COVID policies, which bolstered hopes for the nation's economic recovery.


A deteriorating conflict between the government of Panama and international copper miners threatens to halt the country's copper exports, so limiting supply and driving up prices.

Suggestion