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US President Trump: Americans are paying higher gasoline prices, but its a "very cheap price" relative to what the US has achieved.On September 17, the Hong Kong Monetary Authority (HKMA) announced a 25 basis point increase in its benchmark interest rate to 4.25%. This is the first adjustment to the benchmark interest rate by the HKMA since 2023, ending a period of interest rate stability. This rate hike is a direct response to the Federal Reserves policy change on the same day. The HKMA stated explicitly that following the Feds policy is to maintain the Hong Kong dollars peg to the US dollar. Under this system, the Hong Kong dollar is pegged to the US dollar, and Hong Kongs monetary policy must be linked to the US to ensure exchange rate stability. Despite the increase in the benchmark interest rate, the market remains cautious about the actual changes in local credit costs in Hong Kong. As is customary, major Hong Kong banks typically announce their own interest rate adjustment plans later that day after the HKMAs adjustment, with changes to the prime lending rate being particularly crucial.Multiple explosions were heard in Kyiv, Ukraine, in the early hours of September 17 local time.US President Trump: (Regarding Iran) I predict the war will end soon, and the government has transformed the United States from a “dark age” to a “golden age.”September 17th - US President Trump: "That war? That war will be over soon. Just watch. You just watch. Trump is right about everything. You just watch. They are being destroyed. They (Iran) very much want a deal. They call and say, We want a deal!"

Gold Set For Fourth Week of Losses As Dollar Strengthens, Fed Rate Hike Bets

Aria Thomas

May 16, 2022 10:10

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Gold lost more than 1 percent on Friday and is poised for its fourth consecutive weekly decline, as the dollar's strong run and the prospect of more aggressive U.S. interest rates drained bullion demand.


At 1:54 p.m. EDT (1754 GMT), spot gold declined 0.7% to $1,808.89 per ounce, after hitting its lowest level since February 4 at $1,778.6 per ounce. This week, it has decreased roughly 4 percent.


U.S. gold futures finished at $1,808.20, down 0.9%.


Thursday, U.S. Federal Reserve Chair Jerome Powell stated that the struggle to contain inflation would "involve some pain" as a result of the impact of rising interest rates.


David Meger, director of metals trading at High Ridge Futures, stated, "Gold is being pulled down as a result of the Federal Reserve's commitment to hike interest rates at a rapid pace and the dollar's exceptional strength."


The market will pay close attention to inflation figures in the future.


The dollar index was poised for its sixth straight weekly increase, hovering close to a 20-year high. 


Although bullion is viewed as a hedge against inflation, it pays no interest and is subject to rising U.S. short-term interest rates and bond yields.


"A resurgence in global stock markets coupled with decreased risk aversion in the market to conclude the trading week is also negative for safe-haven metals," Kitco senior analyst Jim Wycoff wrote in a note.


Wall Street's major indexes were driven higher by growth stocks. [.N] [MKTS/GLOB]


The spot price of silver increased by 1.6% to $20.98 per ounce, but has declined by around 6% this week, the most since late January.


Platinum decreased by 0.8% to $936.51. Palladium rose 1.5% to $1,936.83 on Friday, after dropping almost 8% on Thursday.


Meger added, "Overwhelming concerns about supply disruptions in Russia take precedence on the palladium market, and there is aggressive purchasing on dips since prices have fallen considerably."

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