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According to an official Spanish statement, Spain has withdrawn its ambassador to Israel.German Economy Minister: The current oil market is overly sensitive and mainly driven by speculation. Therefore, relevant measures will have a restraining effect on oil prices.On March 11, Carsten Brzeski of ING Bank stated that the Middle East wars are threatening what the European Central Bank (ECB) previously called a "good position." With energy prices soaring, any discussion of interest rate cuts is no longer under consideration. He noted that the ECBs judgment might be influenced by its experience in 2022 when it misjudged the energy price shock as temporary. However, Brzeski pointed out that the current situation is clearly different. "At this stage, the risk of a wage-price spiral appears small." Nevertheless, if a "protracted war" scenario occurs, the ECB may be forced to take action, pushing for one or two rate hikes. ING expects the ECB to not adjust interest rates at its March 19 meeting and also anticipates no further mention of a "good position." Instead, the central bank is likely to adopt a more hawkish tone to curb inflation expectations and demonstrate preparedness to raise rates if necessary.German Economy Minister: The United States and Japan will be the largest contributors to the International Energy Agencys release of strategic petroleum reserves.German Economy Minister: The International Energy Agency plans to release the largest amount of oil reserves in history.

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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