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Russian sources report that the armistice agreement reached to celebrate the victory has expired.Russian Deputy Prime Minister Novak: Russia will maintain its 2026 oil price forecast for budget calculations at $59 per barrel, and lower it to $50 per barrel for 2027-2029.On May 12th, according to US financial media Semafor, as the White House focuses on cutting spending in preparation for the midterm elections, housing agencies have expressed concerns that government officials may soon scale back a program that has so far funded over 56,000 affordable rental homes without taxpayers bearing the costs. The National Association of Affordable Housing Loan Agencies stated in a letter signed by more than a dozen groups that the Federal Financing Bank Risk-Sharing Program has been used by agencies in 34 states to reduce borrowing costs while “generating a net revenue gain for the Treasury,” and therefore “is a program that a fiscally serious government should retain.” These groups pointed out that the White House’s 2027 fiscal year budget “is not expected to make any new commitments to the program” and warned that state housing agencies have already been “rejected.” The association stated, “Given the severity of the housing shortage, the Trump administration should not only reinstate access to the program but also expand its coverage.”According to ITV, British Deputy Prime Minister Lamy is urging Prime Minister Starmer to set a timetable for his resignation.May 12 - Iranian Parliament Speaker Qassem Ghalibaf stated: "The United States has no choice but to accept the rights of the Iranian people outlined in the 14-point plan. Any other approach will be utterly futile, resulting only in one failure after another. The longer they delay, the higher the price will be paid by American taxpayers."

Gold Faces New Challenges as the Dollar Prevents a Return to $1,800

Haiden Holmes

Aug 04, 2022 10:57


Today, gold bulls seldom see more than two weeks of continuous increases.


On Wednesday, it looked that longs in the yellow metal had exhausted their two-week pass following the dollar's surge on fresh anticipation of greater U.S. rate hikes, which halted gold's recent rally and short return to $1,800.


The gold futures contract for December on the New York Comex fell by $13.30, or 0.7%, to $1,776.40 per ounce. The previous day, it touched a near-monthly peak of $1,805.


The spot price of bullion, which some traders monitor more closely than futures, remained at $1,765 after dipping slightly below $1,755.


The Dollar Index, which measures the dollar to six major currencies led by the euro, rebounded from Tuesday's three-week low of 104.9 to hit a one-week high of about 106.7.


Regional heads of the Federal Reserve, such as James Bullard of St. Louis, Mary Daly of San Francisco, and Loretta Mester of Cleveland, have declared in recent days that the central bank will continue to hike interest rates to battle inflation that remains stubbornly above four-decade highs. Consequently, the dollar recovered its strength.


The Federal Reserve is perplexed as to why inflation, as measured by the Consumer Price Index, has not declined from four-decade highs, expanding at a rate of 9.1 percent in the year leading up to June, despite four rate hikes since March that have raised rates from near zero to as high as 2.5 percent.


According to San Francisco Fed President Daly, the economy is not at risk of another 'Great Recession,' and the United States can withstand a third consecutive 75-basis-point rate increase if necessary.


"A 50 basis point increase in September would be appropriate," Daly stated in a live-streamed lecture regarding the anticipated size of the next Fed rate hike. "However, if inflation continues to rise uncontrolled, an increase of 75 basis points could be more appropriate. I do not expect another Great Depression to occur."


Some observers consider the United States as being in a recession after two straight quarters of negative GDP growth in the first half of this year. The so-called Great Recession started in 2008/09, when a market crash triggered a global financial crisis.


Jerome Powell, chairman of the Federal Reserve, acknowledged last week that the central bank cannot predict whether it would sustain the dramatic rate hikes it has conducted since March to battle inflation. This resulted in a gold price movement toward $1,800.


Since August 2020, when it reached record highs above $2,100, gold has failed to live up to its reputation as a hedge against inflation for the most of the previous two years. The dollar's ascension, which is up 11 percent this year and 6 percent in 2021, has contributed.

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