EUR/USD 1.18007
-0.050%
Gold 4879.68
-1.732%
Oil 63.279
-1.484%
USD/JPY 156.892
0.011%
GBP/USD 1.35442
-0.791%
GBP/JPY 212.502
-0.757%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
U.S. Treasury Secretary Bessenter: I saw very strong foreign demand in the Treasury auctions.U.S. Treasury Secretary Bessenter: The Treasury market has shown great resilience.February 6th - Bank of England Governor Andrew Bailey appeared to agree with market predictions of a 50/50 chance of an interest rate cut in March. In an interview on Thursday, he stated, "I think by March, a 50/50 bet on a rate cut isnt too bad." This followed the Bank of Englands surprising decision to keep rates unchanged by a narrow 5-4 vote. Bailey said, "To some extent, the market is asking itself the same questions Im asking, or rather, theyre trying to figure out exactly what questions Im asking." In the latest policy meeting statement, Bailey indicated he believes there is still room for further easing, but added, "This doesnt mean I expect to lower the benchmark interest rate at any particular meeting. At the next meeting, I will ask whether a rate cut is a reasonable move." Bailey stated he needs to see "more evidence" that the central bank will remain near its 2% target level after expecting inflation to be close to that level in April. Bailey also stated that the central bank is now "closer" to the neutral interest rate level. This is partly why the Monetary Policy Committee removed the word "gradual" from its statements regarding future rate cuts.Federal Reserves Bostic: Independence means officials should look to the longer term.Federal Reserve official Bostic: Other officials, such as those in Congress, have a shorter-term perspective.

Gold Set For Fourth Week of Losses As Dollar Strengthens, Fed Rate Hike Bets

Aria Thomas

May 16, 2022 10:10

G2.png


Gold lost more than 1 percent on Friday and is poised for its fourth consecutive weekly decline, as the dollar's strong run and the prospect of more aggressive U.S. interest rates drained bullion demand.


At 1:54 p.m. EDT (1754 GMT), spot gold declined 0.7% to $1,808.89 per ounce, after hitting its lowest level since February 4 at $1,778.6 per ounce. This week, it has decreased roughly 4 percent.


U.S. gold futures finished at $1,808.20, down 0.9%.


Thursday, U.S. Federal Reserve Chair Jerome Powell stated that the struggle to contain inflation would "involve some pain" as a result of the impact of rising interest rates.


David Meger, director of metals trading at High Ridge Futures, stated, "Gold is being pulled down as a result of the Federal Reserve's commitment to hike interest rates at a rapid pace and the dollar's exceptional strength."


The market will pay close attention to inflation figures in the future.


The dollar index was poised for its sixth straight weekly increase, hovering close to a 20-year high. 


Although bullion is viewed as a hedge against inflation, it pays no interest and is subject to rising U.S. short-term interest rates and bond yields.


"A resurgence in global stock markets coupled with decreased risk aversion in the market to conclude the trading week is also negative for safe-haven metals," Kitco senior analyst Jim Wycoff wrote in a note.


Wall Street's major indexes were driven higher by growth stocks. [.N] [MKTS/GLOB]


The spot price of silver increased by 1.6% to $20.98 per ounce, but has declined by around 6% this week, the most since late January.


Platinum decreased by 0.8% to $936.51. Palladium rose 1.5% to $1,936.83 on Friday, after dropping almost 8% on Thursday.


Meger added, "Overwhelming concerns about supply disruptions in Russia take precedence on the palladium market, and there is aggressive purchasing on dips since prices have fallen considerably."

Suggestion