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Indian government: Diesel sales in India rose 4.7% year-on-year in November, while gasoline sales rose 2.6% year-on-year.On December 6th, European Central Bank (ECB) Governing Council member Rehn stated that the medium-term inflation risks in the Eurozone are slightly tilted to the downside. He cited "relatively low energy prices, the appreciation of the euro, and expectations of slower inflation in the services and wage sectors" as downside factors. Factors pushing up inflation include "potential impacts on supply chains from geoeconomic fragmentation" and a stronger-than-expected economic rebound that could lower the savings rate. Rehn said, "We need to pay attention to both upside and downside risks." He refuted suggestions from some colleagues that another rate cut should be subject to high thresholds. Rehn stated, "We shouldnt impose any unnecessary constraints on our monetary policy, whether high or low thresholds. Its best to follow our strategy and be consistent in word and deed. I believe we will." When asked about ECB President Lagardes recent comments that the central bank is in a "good but not fixed" position regarding interest rates, Rehn agreed.December 6th - According to the Gaza Strip Media Office, since the ceasefire agreement took effect this year, Gaza has experienced a severe gas shortage. Originally, 660 gas delivery trucks were scheduled to enter Gaza, but only 104 have been approved so far, representing only about 16% of the agreed demand. This shortfall directly affects 2.4 million residents of Gaza, impacting essential sectors such as homes, hospitals, bakeries, and public kitchens. Currently, gas in Gaza is allocated based on the actual number of registered households to ensure fairness. Each household is allocated an 8kg gas cylinder per cycle, and can only collect it once per cycle. 252,000 households have already received their quotas, but the system targets approximately 470,000 households. Due to the continued shortage, each allocation cycle takes at least three months to complete the distribution to all registered households.Ukrainian President Zelensky: He spoke by phone with NATO Secretary General Rutte.Market news: The Indian government is preparing to take action against IndiGo, or may seek to remove IndiGos CEO.

Gold Hits 10-Month Low Due to Fed/One-Two Dollar's Punch

Haiden Holmes

Jul 07, 2022 11:20


Is gold safe at $1,700? Given how far south the yellow metal has traveled in only two days, the question is legitimate.


August gold futures on the New York Comex concluded Wednesday's trading at $1,736.0 per ounce, down $27.40, or 1.6%. The day's minimum value was $1,730.95.


Gold's most recent nadir provides a $30 cushion between the next horror scenario and longs in the game — $1,600 area.


Sunil Kumar Dixit, chief technical strategist at skcharts.com, warned that if gold fails to achieve $1,768 it will continue under pressure and aim for $1,722-$1,698.


The dollar's rebound and the Federal Reserve's hawkish attitude have virtually pushed gold to September 2021 lows.


Wednesday was the first occasion since December 2002 when the Dollar Index, which measures the dollar against six major currencies, topped 107 points. Since November of last year, the dollar has climbed steadily on projections of quick rate hikes by the Federal Reserve, which have barely started to materialize.


Gold's malaise also coincides with the Fed's relentless rate hike talk. The Fed's vow to tame the inflation beast by increasing the Fed funds rate before the end of the year has damaged bullion prices for weeks. However, central bank authorities have shown no hesitation to pursue this purpose.


According to minutes from a central bank policy meeting held last month, the Fed considers there is a serious danger of high inflation getting entrenched in the US economy and that modest interest rate hikes are the only way to balance runaway prices with growth.


During the outbreak, the Fed held interest rates between zero and 0.25 percent for two years until boosting them in March of this year. Since then, rates have hit between 1.5 and 1.75 percent. The central bank has declared that it will continue to hike interest rates until inflation, which has hit 40-year highs of more than 8 percent yearly, returns to its objective rate of 2 percent annually.


This month, the Fed is expected to continue with another quarter-point rate rise.


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