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On May 1, according to the Financial Times, senior EU diplomats said that the EU is preparing a "Plan B", that is, how the EU will maintain economic sanctions against Russia if the Trump administration abandons the Ukrainian peace talks and seeks reconciliation with Moscow. "Whether the Americans will leave (the negotiations) is a question. We see signs that they are considering whether they should leave Ukraine instead of trying to reach an agreement with Russia because it is difficult." Earlier, a spokesman for US Secretary of State Rubio said: "If there is no progress, the United States will withdraw from the role of mediator in this process." Kallas said that if Hungary blocks the extension of EU economic sanctions in July, there is a "Plan B" to maintain economic pressure on Russia, but he stressed that Brussels is still focused on keeping all member states in line.On May 1, local time on April 30, US Secretary of State Rubio announced new sanctions against entities engaged in Iranian oil and petrochemical trade. It is reported that the sanctions target seven entities engaged in Iranian oil and petrochemical product trade, as well as two ships belonging to a sanctioned maritime management company. According to the statement, five of the entities are headquartered in the United Arab Emirates.Colombias central bank unexpectedly cut interest rates by 25 basis points to 9.25%.According to the Syrian state news agency on April 30, Israel launched an air strike on the Ashrafieh Sahnaya area in the southwestern suburbs of the Syrian capital Damascus that day.On May 1, local time on April 30, Russian Security Council Secretary Sergei Shoigu said that the plan of European countries to deploy so-called peacekeeping forces on Ukrainian territory showed signs of preparing to occupy western Ukraine. Russia believes that the deployment of troops by Western countries in Ukraine is unacceptable and they will become legitimate targets of the Russian army. Shoigu said that Europe is trying to get involved in the conflict and prevent Russia from normalizing relations with the United States.

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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