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The Russian Ministry of Defense stated that it shot down 326 Ukrainian drones last night.Global Chip LOF: Trading will be suspended from the opening of the market on the afternoon of June 10, 2026 until the close of the market on the same day. During the suspension period, redemption services for this fund will continue as usual.On June 10th, the wheat market saw relatively stable prices, with some companies raising their purchase prices. With a large influx of new wheat onto the market, supply continues to increase, narrowing the price gap between new and old wheat. Flour processing companies in producing areas are purchasing new and old wheat at the same price. However, end-user demand remains weak, and flour mills are operating at low rates, primarily purchasing to replenish their inventories for immediate needs. On the policy front, grain depots are gradually resuming purchases, and prices, after falling, have stabilized and rebounded slightly. Increased reserve purchases have effectively alleviated downward price pressure from the concentrated arrival of new wheat. In the short term, new wheat prices remain stable due to the support of reserve purchases, but lack upward momentum in the near term.A Reuters poll predicts the Bank of Japan will raise interest rates to 1.25% in the fourth quarter (consistent with the results of the May poll).A Reuters poll shows that 94% of economists expect the Bank of Japan to raise its key interest rate to 1.00% in June (up from 65% in May).

Fed hawkishness supports the dollar while gold and copper lose steam

Skylar Williams

Sep 22, 2022 11:41

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After a Fed rate hike and hawkish posture bolstered the dollar and harmed metal markets, gold prices reversed recent gains and copper prices extended losses on Thursday.


As traders thought the metal to be oversold, bullion prices initially rose after the Fed's pronouncement. Since then, it has lost the majority of its gains and is trading between flat and low.


Gold spot prices dipped 0.3% to $1,669.56 and gold futures declined to $1,674.45 around 20:01 E.T. (00:01 GMT). Both increased by 0.5% on Wednesday.


As anticipated, after the Fed increased interest rates by 75 basis points, metal markets were volatile. The central bank sounded more hawkish than anticipated for future interest rates, reaffirming predictions that U.S. interest rates will end the year over 4%.


Chairman of the Federal Reserve Jerome Powell stated that the bank must adopt more aggressive tactics to combat inflation and was willing to exert pressure on the economy and labor market.


The dollar increased by 1% as a result of Powell's remarks, reducing metal prices. Platinum prices decreased 0.4% and silver futures decreased 0.1%.


During the Russia-Ukraine crisis, rising U.S. interest rates strengthened the ruble and diverted capital away from gold. It lost its role as a safe haven as fears of a recession increased.


Copper futures fell 0.3% to $3.4260 a pound, following a 2% decline on Wednesday. The Fed's aggressive stance may hinder global economic growth, hence decreasing gold demand.


The CEO of Rio Tinto warned that growing inflation and supply chain disruptions will have an immediate negative impact on copper pricing. China, the largest copper importer in the world, is also slowing.


A strike at the world's largest copper mine, Escondida, in Chile increased copper prices. The action could diminish copper supplies.

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