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Hang Seng Index futures closed up 0.59% at 19,426 points in the night session, 140 points higher.On January 16, the Federal Reserve Beige Book stated that during the reporting period, overall prices rose to a certain extent, ranging from flat to moderately rising. Most respondents in the reserve area said that sales prices had increased moderately, but there were also cases where prices remained flat or fell, especially in retail and manufacturing. Input costs also rose, and respondents specifically mentioned rising insurance prices, especially health insurance. Respondents expect prices to continue to rise in 2025, and some pointed out that tariff increases may drive price increases.Brent crude oil rose more than 2.00% during the day and is now trading at $81.32 per barrel.On January 16, the Federal Reserve Beige Book pointed out that during the reporting period, overall, employment conditions rose slightly, with 6 Federal Reserve districts reporting a slight increase in employment and 6 reserve districts reporting no change. Respondents in several service industries, including healthcare, continued to report an increase in employment. Construction employment increased slightly, while manufacturing employment remained flat. Respondents in multiple industries pointed out that it was difficult to find skilled workers, and reports of layoffs remained rare. However, respondents in some reserve districts showed greater uncertainty about future staffing needs. Wage growth in most reserve districts accelerated to a moderate level, although some reports said wage pressures had eased.US President Biden: The United States will participate in the first phase of hostage release.

Gold Price Analysis: After Fed Chair Powell's hawkish comments, the XAU/USD pair is in the red

Alina Haynes

Mar 08, 2023 13:54

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Gold is nursing its wounds due to the likelihood of a 50 basis point (bps) rate rise by the Federal Reserve. At the time of writing, Gold price is trading at $1,813.53 and has been probing lower in Asia to $1,1812.60, a fresh low made following the sell-off that transpired in response to Federal Reserve chair Jerome Powell's testimony before Congress on Tuesday.

 

The price of gold fell sharply as a result of Fed Chair Powell's remarks, falling from a high of $1,851.70 to a low of $1,1812.36 like a heavily weighted metal. This is a result of Jerome Powell, chairman of the Federal Reserve, stating that the US central bank will remain on course until the job is completed. He added more fuel to the fire by stating that the ultimate level of interest rates is likely to be higher than previously predicted.

 

The clincher was when Federal Reserve chairman Jerome Powell stated that the Fed is prepared to increase the tempo of rate increases if data indicates it is warranted.

 

"The most recent economic data have been greater than anticipated, indicating that the ultimate level of interest rates will likely be higher than anticipated. "Powell of the Fed stated in his testimony.

 

As a result, the yield on the 10-year US Treasury note rose to 4% before retreating to 3.96%, remaining marginally below the three-month high of 4.07% reached on March 2 as investors weighed the path of future rate increases by the Federal Reserve. This provided a stimulus to the dollar. The DXY index, a measure of the US Dollar versus a basket of currencies, smashed through 105 in a move that began at 104.43 and continued until 105.435, putting significant downward pressure on the price of Gold.


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