EUR/USD 1.14673
0.035%
Gold 4269.88
0.140%
Oil 97.236
-0.250%
USD/JPY 156.177
-0.063%
GBP/USD 1.33814
0.012%
GBP/JPY 208.994
-0.049%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
RSM Chief Economist Joseph Brusueras: Warsh delivered the right hawkish signals at the press conference and attempted to reinforce the Fed’s credibility in restoring price stability, while also enhancing his own credibility.U.S. stocks continued to decline after the Walsh press conference, with the S&P 500 falling 1%, its biggest drop since July 29, the Dow Jones Industrial Average down 1.65%, and the Nasdaq Composite down 0.6%.On September 17th, Federal Reserve Chairman Warsh declined to answer questions at a press conference regarding his interactions with US President Trump. Trump has been calling for lower interest rates in recent months. Warsh stated, "I have no comment on my discussions with the president." White House Council of Economic Advisers Chairman Christopher Phelan said on Tuesday that raising interest rates would be a "mistake."On September 17th, Federal Reserve Chairman Warsh stated that he would not disclose details of future interest rate decisions by the Federal Open Market Committee (FOMC). He said, "I am not responsible for providing forward guidance. Our decision today (to raise interest rates) is a carefully considered, serious, and responsible one. We have been preparing for and thinking about this decision for the past 110 or 120 days." Warsh also stated that this decision was not market-driven. He said, "Our decision today is based on our assessment of the current situation, our judgment of the employment trend, and our assessment of the strength of the economy. Sometimes, the market tries to anticipate our decisions. I watch market prices to see what information the market is sending. But todays decision is our own."On September 17th, Warsh stated that while the Federal Reserve cannot prevent price shocks in commodities such as oil on its own, the central bank can use policy tools to prevent further spread of inflationary pressures. Warsh said, "We cannot influence the price of any single commodity, such as oil or groceries." However, he pointed out, "We can and will ensure that any changes in relative prices do not spread further, and do not have second- or third-order effects on the economy. Thats our responsibility, and thats what were doing." Warsh made these remarks as U.S. diesel prices hit a record high due to the Iran war.

Gold Maintains Its Position Above $1,700 Despite Dollar Decline; ECB Anticipation

Charlie Brooks

Sep 08, 2022 11:28

28.png


Gold prices stayed constant over $1,700 on Thursday, as a pause in the dollar's recent ascent relieved some pressure on metal prices, with attention shifting to an upcoming meeting of the European Central Bank for more cues.


At 11:18 p.m. ET (19:18 GMT) on Thursday, spot gold was essentially unchanged at $1,717.40, after gaining about 1% on Wednesday. Gold futures rose marginally to $1,728.65, after gaining around 1% in the previous session.


As investors awaited a rate hike by the European Central Bank (ECB) later in the day, the dollar slid further from its 20-year highs on Thursday. It is anticipated that the central bank will hike interest rates by 50 basis points for the first time in eleven years as it struggles to curb growing inflation and a weakened euro.


It is anticipated that the increase in interest rates will strengthen the euro and weaken the dollar, which might be beneficial for gold prices.


"The increase of the U.S. dollar has been halted pending the ECB rate announcement, which is positive for gold." Gold is tentatively holding near the $1,700 mark, which might be tested... According to research by OANDA analysts, gold remains susceptible to another significant decline.


The dollar's strength and U.S. Treasury yields have severely weighed on gold prices over the past month, as good U.S. economic data and hawkish signals from the Federal Reserve have raised expectations for future sharp interest rate hikes by the central bank. As a result of the Federal Reserve's decision to increase interest rates this year, gold's price has decreased since its peak in 2022.


This has caused gold returns to lag behind inflation, casting doubt on the yellow metal's efficacy as a hedge against inflation.


Copper prices were muted, continuing a fall in the prior session, as concerns about China's faltering economy increased.


Despite Chinese trade data indicating that the nation continued to increase copper imports in August, investors are afraid that this trend may reverse as economic activity continues to decline.


As a result of a fall in imports and exports, China's overall trade balance in August was severely below expectations.

Suggestion