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As of the 2:30 closing bell, the Shanghai Gold futures main contract fell 0.24%, the Shanghai Silver futures main contract rose 1.45%, and the SC crude oil futures main contract fell 4.41%.Iranian Parliament Speaker Ghalibaf: A bilateral ceasefire or negotiations is unreasonable.April 9th - Nick Timiraos, the "Federal Reserve mouthpiece," stated that the Fed meeting minutes revealed that the "vast majority" of officials believed the pace of inflation easing might be slower than expected, primarily due to three intertwined concerns: the impact of tariffs on commodity prices may take longer to subside; the transmission effect of oil prices on core inflation; and years of inflation exceeding the target level, making inflation expectations more vulnerable to new shocks.April 9th - In the third week of the Iran-Iraq war, coinciding with a Federal Reserve meeting, a group of officials expressed concern that the conflict could prolong the period of high inflation. These officials discussed how the war has driven up energy prices and how a protracted conflict could lead to other categories of inflation. The minutes of the March meeting stated: "Due to these factors, the vast majority of participants noted that progress toward the Committees 2% inflation target was likely to be slower than previously anticipated."April 9th - The minutes of the Federal Reserves March meeting revealed an increase in the number of officials who wanted to signal to the market that the next step might be a rate hike rather than further rate cuts. The minutes stated, "Some participants believed there were sufficient grounds to provide a two-way description of the Committees future interest rate decisions in the post-meeting statement." In contrast, the January meeting minutes only mentioned "a few" participants holding this view. In the Feds terminology, "some" refers to more people than "several."

After A Robust Ascent, Gold Prices Are Anticipated to Rise For A Fifth Week

Haiden Holmes

Jan 20, 2023 10:43

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Gold prices remained close to a nine-month high on Friday, following a significant increase in the previous session, and were poised for a fifth consecutive week of gains on the strength of swelling demand for safe-haven assets and growing uncertainty regarding the future direction of U.S. monetary policy.


In the previous session, prices of the yellow metal surged by approximately 1.5%, climbing in tandem with a significant plunge in stock markets as poor corporate profits and weaker-than-anticipated economic data fuelled worries of an impending economic crisis.


The Federal Reserve's hawkish comments further dampened sentiment. Despite indicators of decelerating inflation, Fed Vice Chair Lael Brainard warned on Thursday that interest rates will need to remain elevated so long as price pressures remain near 40-year highs. Her words paralleled those made by other Fed officials during the same time period.


However, the markets were uncertain as to the peak level of U.S. interest rates, as Fed officials provided predictions ranging from just below 5% to close to 6%.


As of 19:40 EDT, spot gold fell 0.1% to $1,930.90 per ounce, while gold futures were flat at $1,932.35 per ounce (00:40 GMT). Both assets were trading near their highest levels since April 2022, and weekly gains of 0.6% were anticipated.


Since figures demonstrated a continuous decrease in U.S. inflation, gold prices have increased, which is expected to persuade the Fed to adopt less aggressive action this year. In 2022, bullion prices were rattled by the Federal Reserve's hawkishness; nevertheless, the possibility of fewer rate hikes provided substantial relief.


In recent weeks, the potential of a global recession has raised the demand for gold as a safe haven, in light of several warnings that major economies could see a contraction this year.


Copper prices fell in early Asian trading, but were poised for a fifth straight week of gains due to enduring optimism on China's economic recovery.


Copper futures decreased 0.2% to $4.2408 per pound, but were up 0.6% for the week.


China, the largest importer of copper in the world, began reversing the majority of anti-COVID actions in December. As a result, the price of copper has increased significantly during the previous few weeks.


This year's growing fears of a recession have impeded recent gains in the price of the precious metal.

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