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On August 27th, Federal Reserve official Hammark reiterated that now is the time for officials to take action to curb inflation. She stated that current interest rates are not having a strong enough cooling effect on the economy to allow price pressures to subside on their own. She said, "I think the appropriate approach now is to maintain a certain level of restraint to help inflation fall back to our target level. The longer inflation remains above our target, the harder it will be to bring it down." Hammark was one of three dissenting officials at last months policy meeting, favoring a 25-basis-point rate hike. She said, "In my view, the real problem with inflation deviating from our target for an extended period is that the public may be starting to develop an inflationary mentality." She added that she hasnt seen this yet, but conversations with some people have made her concerned. Hammark also stated that the performance of capital markets indicates that current interest rates are not putting sufficient pressure on credit or economic growth. She said, "Weve seen trillions of dollars in IPOs and record-breaking debt issuances. From my perspective, this doesnt look like the economy is being restrained."According to the New York Times, the Trump administration will expand the number of flights to Haiti.On August 27, according to Irans Tasnim News Agency, following months of attacks by the United States, Iranian Parliament Deputy Speaker Ali Nikozadeh inspected the oil infrastructure on Kharg Island, located off the southern coast of Iran. At its peak, the island handled 90% of Irans oil exports, processing approximately 1.5 million barrels of oil per day, or about 950 million barrels per year.According to documents from the Hong Kong Stock Exchange, Dizhe (Jiangsu) Pharmaceutical Co., Ltd. has submitted a listing application to the Hong Kong Stock Exchange.On August 27, Iranian Parliament Speaker Mohammed bin Salman Ghalibaf met with visiting Qatari Prime Minister and Foreign Minister Mohammed bin Salman in Tehran. The two exchanged views on the current regional situation and how to ease tensions and create favorable conditions for resuming dialogue. Mohammed bin Salman emphasized the need to restart diplomatic channels, stating that dialogue is the best way to resolve differences and prevent further escalation of regional tensions.

Gold And Copper Prices Oscillate About $1,750 Despite Fed Hawkishness

Skylar Williams

Nov 21, 2022 11:29

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As investors anticipated further clarity on the direction of U.S. monetary policy in the coming months, gold prices changed slightly on Monday, but remained near key support levels. In the meanwhile, copper prices remained low because of the likelihood that more COVID issues in China would decrease demand.


The minutes of the most recent Federal Reserve meeting are expected to provide fresh insight into the central bank's intentions for increasing interest rates when they are released on Thursday.


Inflation has fallen more than anticipated in recent months, prompting markets to anticipate a somewhat smaller rate hike in December. However, recent remarks from Fed officials indicate that interest rates may continue to rise for longer than anticipated.


This view is beneficial for the currency and Treasury rates, but it will likely damage metal markets. The greenback appears to have found a bottom following recent losses, and rose 0.1% to 107 on Monday.


As of 19:05 EDT, spot gold rose 0.1% to $1,752.81 per ounce, while gold futures inched up to $1,754.90 per ounce (00:05 GMT). In response to the Federal Reserve's members' warnings of rising interest rates, the value of both assets declined by nearly 2 percent last week.


As a result of the Federal Reserve's streak of quick rate hikes this year, non-yielding assets, such as gold, have become less desirable.


Despite the fact that metal markets climbed earlier this month on signals of a reduction in U.S. inflation, they are expected to remain under pressure in the coming months, as inflation remains well over the Fed's 2% annual target.


Copper prices stayed largely constant on Monday, following a week of significant drops due to concerns over China's import demand.


Copper prices stayed stable at $3.6405 per pound following last week's 7.2% decrease, their worst performance since late August.


China has shut down further sections of the country in response to the greatest COVID outbreak in seven months. This year, the country's strict zero-COVID policy, which led to a multitude of disruptive lockdowns, severely hampered economic growth.


This decreased national demand for commodities.


Despite indications of a limited supply, rising fears of a global recession have also hampered copper's future prospects.

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