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U.S. Redbook retail sales annualized for the week ending April 3 were 7.6%, compared to 6.9% previously.April 7th - U.S. business equipment orders rebounded in February, indicating that companies are proceeding with investment plans ahead of the potential conflict with Iran. Data released Tuesday by the U.S. Commerce Department showed that orders for non-defense capital goods (excluding aircraft) rose 0.6% in February, compared to economists median forecast of a 0.5% increase. Orders for all durable goods fell 1.4%, primarily reflecting a decrease in aircraft orders. Boeing stated that it received fewer aircraft orders in February compared to the previous month. The durable goods report showed increases in orders for computers, automobiles, metals, and machinery. Economists expect business investment to remain robust this year as companies continue to invest in artificial intelligence and take advantage of more favorable tax terms. Meanwhile, it remains unclear how cautious companies will become due to the potential conflict with Iran.On April 7th, New York Federal Reserve President Williams stated that the impact of the Iran war will push up overall inflation, and the resulting inflationary factors will be directly reflected in overall inflation data. Taking energy factors into account, the inflation rate should be around 2.75%. The current focus is on overall inflation; core inflation has not changed significantly. Tariffs remain an important factor in inflation, and overall inflation is expected to slow later this year. Monetary policy is currently in a favorable position, and a wait-and-see approach is appropriate. Interest rates are currently at a perfectly appropriate level and can be adjusted if necessary. The labor market situation is quite complex, characterized by low hiring and low layoffs.Federal Reserves Williams: I havent spoken with Warsh recently.Federal Reserves Williams: Warsh has a deep understanding of the Feds mission.

Copper declined because of economic concerns, while gold traded near $1,650

Aria Thomas

Oct 25, 2022 14:14

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On Tuesday, gold prices were under pressure near important support levels as the dollar rallied from recent losses, while copper prices sustained recent drops amidst rising concerns about a slowdown in global economic growth.


Spot gold prices rose 0.2% to $1,652.10 per ounce by 19:23 ET, while December gold futures also rose 0.2%. (23:23 GMT). Gold prices decreased by 0.6% on Monday as the dollar recouped previous losses.


Despite increasing uncertainty surrounding the future course of U.S. monetary policy, gold and the U.S. dollar remained within the limited trading ranges recorded in the previous weeks. While forecasts of a probable dovish turn by the Federal Reserve boosted gold prices slightly last week, markets continue to price in a nearly 100 percent chance of a 75 basis point rate hike by the Fed in November.


After three consecutive days of decline, the dollar stabilized on Monday, as U.S. Treasury yields remained close to their highest levels since the 2008 financial crisis.


Rising U.S. interest rates weighed heavily on gold this year, as the prospective cost of holding the yellow metal rose. This year, gold's appeal as a safe haven and inflation hedge has diminished significantly.


In the foreseeable future, bullion prices are projected to be under pressure as a result of rising U.S. interest rates.


Copper prices were subdued on Tuesday after plummeting in the previous session, as a series of dismal economic indicators posted on Monday signaled a bleak outlook for global copper demand.


Copper futures stayed unchanged at $3.4325 per pound after falling 1.4% in the prior session.


Even though China's copper imports surged in September due to increasing infrastructure spending in recent months, markets remained cautious due to the country's recent political turmoil.


President Xi Jinping's consolidation of power at the National Congress sparked fears of a new assault on the country's wealthiest enterprises and businessmen, which precipitated a disastrous sell-off in Chinese markets.


China's third-quarter GDP figures beat analyst forecasts, but fell far short of the Communist Party's target.


Copper's outlook remains bleak as a result of Jinping's desire to maintain the economically damaging zero-COVID policy, which also fueled concerns about China's growth prospects.


Due to the worldwide economic slump, the red metal is also experiencing considerable difficulties. The economic superpower certainly contracted in the third quarter, according to weak data from the Eurozone.

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