EUR/USD 1.16209
-0.410%
Gold 4545.67
-2.292%
Oil 100.978
3.282%
USD/JPY 158.766
0.243%
GBP/USD 1.33180
-0.615%
GBP/JPY 211.449
-0.370%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On May 17, at the request of the Guizhou Provincial Flood Control and Drought Relief Headquarters, the State Flood Control and Drought Relief Headquarters Office, together with the National Food and Strategic Reserves Administration, allocated more than 3,000 pieces of central flood control and drought relief materials, including woven bags, laminated woven fabrics, long-filament geotextiles, and drainage equipment, to support Guizhou in its flood control and disaster relief efforts.On May 17th, TsLombard stated that an aggressive tightening cycle is unlikely. Faced with the oil price shock, the extent of policy tightening by global central banks is likely to be quite limited. In Europe, the energy shock is already dragging down economic activity. The UK labor market has been volatile for some time, and hiring sentiment in Europe is becoming increasingly weak. In our view, the tightening力度 of the ECB and the Bank of England this year will be less than the market expects, and this possibility is currently underestimated. In the US, the likelihood of the Federal Reserve implementing policy tightening in the short term is small, and even if it does, it is almost certain to be before 2027.The UAE Ministry of Defense stated that a drone struck a generator outside the Barakah nuclear power plant.On May 17, the Hong Kong Special Administrative Region government announced the activation of the alert level under the "Ebola Virus Preparedness and Response Plan" to protect public health. The Centre for Health Protection of the Hong Kong Department of Health stated that it has proactively sought further information from the WHO, the Africa Centres for Disease Control and Prevention, the Democratic Republic of Congo, and the health authorities of Uganda.On May 17, the Israel Defense Forces (IDF) said that on May 16, the IDF killed a commander of the Hamas operations headquarters.

Gold Falls Below $1,900; The dollar Soars As The Fed Prepares to Double Its Rate Hikes

Charlie Brooks

Apr 26, 2022 09:57

G2.png


On Monday's session on the New York Comex, an ounce of the yellow gold returned to the $1,800 level.


This came as the dollar strengthened on expectations that the Federal Reserve would hike rates by 50 basis points, or half a percentage point, at its May policy meeting next week — more than double the 25 basis points, or quarter point, approved in March, the first increase in the post-pandemic era in the United States.


On Monday, Comex front-month gold futures for June finished down $38.30, or 2%, at $1,896 an ounce. On April 18, June gold reached a six-week high of $2,003 on concerns that the US could enter recession as a result of strong Fed attempts to rein down inflation. Gold is frequently used as a hedge against economic and political uncertainty.


Over the last week, a series of Fed speakers assuaged market concerns that the economy would turn negative as a result of the central bank's efforts to contain price pressures developing at their highest rate in 40 years.


While fears of a hard landing have not completely vanished, optimism, particularly regarding the sterling job market, has won over some pessimists. This has resulted in the dollar surging – the primary beneficiary of a rate hike — at the expense of gold and other safe-haven assets.


The Dollar Index, which compares the US currency to six main rivals, touched a 25-month high of 101.745 on Monday.


US bond yields, which frequently move in lockstep with the dollar, have recently decoupled from the greenback. The yield on the US 10-year Treasury note fell for the third consecutive day, dropping about 4% on the day.


While risk aversion across the board drew investors to safe-haven assets, gold's near-term charts showed the possibility of a rebound to the $1,900 lows, at the very least, following the week's loss of more than $100. 


"Gold has begun to exhibit oversold conditions on a daily basis, which may result in a short-term relief rally, albeit not necessarily a reversal," Dixit explained. "The $1,925 to $1,935 level remains a hurdle, but a rebound is probable." If history is any guide, gold will almost certainly find buyers at lower prices."


On the other hand, he noted, a Comex settlement below $1,888 will exacerbate gold's troubles.

Suggestion