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According to Israels Channel 14: A senior Israeli official said that Israel is ready to resume fighting in Iran immediately and is waiting for the green light from the United States.According to Israeli media, the Israeli military and the national intelligence agency Mossad have suggested resuming the war with Iran on a political level.On May 5th, New York Federal Reserve President Williams stated that the Feds current policy stance strikes a balance between the risks to price stability and full employment amid "significant" supply chain disruptions caused by the war with Iran. Williams said on Monday, "High inflation, mixed labor market signals, and increased uncertainty from the Middle East conflict constitute an unusual situation, but the current monetary policy stance is well-positioned to balance these risks." The Fed kept interest rates unchanged last week, but three officials objected to the "dodging bias" wording in the post-meeting statement, arguing for a statement indicating that the next move could be either a rate hike or a rate cut. In his speech on Monday, Williams avoided this debate. He drew parallels between the supply chain disruptions caused by the war with those in the post-pandemic era, while suggesting that the current inflationary pressures may have limited room for further sustained growth. Williams stated, "This echoes the severe shortages and supply disruptions the global economy experienced in 2021 as it emerged from the pandemic. However, unlike then, the labor market is not currently exacerbating inflationary pressures." "Furthermore, underlying inflation, excluding imported goods and energy, has remained stable to date, and there are no signs of a significant second-round transmission effect of tariffs on the overall economy." Williams projects the U.S. economy will grow by 2% to 2.25% this year and next, with the unemployment rate remaining within the recent range of 4.25% to 4.5%.Federal Reserves Williams stated that tariffs and energy are the main drivers of inflation, while underlying inflation remains generally stable. The fact that inflation expectations remain under control is a positive sign.Federal Reserves Williams: Significant supply chain disruptions are emerging.

Due to the Fed's hawkishness, gold prices fall below $1,700, while copper prices rise

Haiden Holmes

Oct 11, 2022 11:31

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On Tuesday, gold prices remained above their yearly lows after a precipitous drop in response to hawkish Fed signals, while copper prices soared on the expectation that Chinese demand will sustain despite recent challenges.


Spot gold increased 0.1% to $1,669.76 per ounce at 20:20 EDT, while gold futures rose 0.1% to $1,675.25 per ounce (00:20 GMT). Both slumped almost 2% on Monday, their steepest decline in more than two weeks.


Lael Brainard, vice chair of the Federal Reserve, emphasized the need for a restrictive monetary policy and indicated that the economic impact of previous rate hikes is not yet known.


She said that the bank will hold off on major rate hikes until there is "confidence that inflation will decline," providing no indication that its hawkish stance will shift.


Her statements lifted the currency and caused a widespread selloff. In addition, this year's rising interest rates will increase the prospective cost of holding the yellow metal, which will increase the pressure on gold.


As the Russia-Ukraine war intensified, the dollar also strengthened. Gold has not been a safe haven this year, with the exception of the conflict's early stages.


As rising interest rates reduced metal demand, the price of gold declined from its yearly highs. Along with the Federal Reserve, major central banks in Europe and Asia are seeking to limit inflationary runaway.


In the foreseeable future, this should impact gold and other precious commodities.


As China returned from a week-long vacation on Monday, copper prices increased 1.5%.


Copper futures remained flat at $3.4410 per pound on Tuesday, following a strong opening.


In spite of sluggish economic growth, the demand for copper in China has remained stable as domestic consumers have stocked up.


Copper has declined significantly this year because to fears that a sluggish global economy will have a negative impact on demand. However, China, the largest copper importer in the world, shows no indications of reducing its demand.


Later this week, Chinese trade data may offer further information about copper imports.

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