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On August 2, Russias First Deputy Permanent Representative to the United Nations, Konstantin Polyansky, stated at a Security Council meeting that UN staff were unwilling to take seriously the Ukrainian militarys attack on Russian civilian facilities, which undermined the UNs authority. He said: "In this case, the relevant staff of the UN Secretariat acted with extreme hypocrisy, feigning ignorance and evading responsibility by claiming they could not verify the authenticity of the information about Ukrainian crimes. All of this clearly undermined the authority of our global organization."On August 2nd, a full year since the Bank of England began its interest rate-cutting cycle, despite four consecutive rate cuts and the likelihood of further cuts, British households continue to face the highest borrowing costs in a generation. Analysis of Bank of England savings and mortgage data shows that Britons are spending £11 billion (US$14.5 billion) less annually than in July of last year. This loss stems primarily from two factors: First, the rate cuts have hit savers hard, significantly reducing the returns on their savings. Second, many homeowners have yet to benefit from the rate cuts, as they are still waiting for mortgages locked in during periods of high interest rates to expire. Edward Allenby, an economist at Oxford Economics, said: "Against the backdrop of slowing real wage growth and tighter fiscal policy, the lagged impact of past rate hikes on mortgage holders will continue to dampen consumption. The Bank of Englands rate-cutting cycle is unlikely to provide a significant boost to business investment and consumer spending over the next few years."DeepBlue Auto: Global deliveries of 27,169 vehicles in July, a year-on-year increase of 62%.On August 2, CNN reported that the United States plans to conduct the first large-scale test of its Golden Dome missile defense system before the 2028 presidential election, allowing the current administration to promote it as a political achievement during the campaign. The report indicated that the test is tentatively scheduled for the fourth quarter of 2028. An unnamed US Department of Defense official stated that this timeline indicates that Republicans want to have a demonstration to show during the November election. He also noted that completing the systems test preparations within such a tight timeframe is an "extremely challenging task," especially given the high technical complexity of deploying a new missile interceptor system. This test may only be the first phase of the Golden Dome project, and full deployment will take much longer.YouGov poll: Most Americans believe tariffs hurt American consumers; only 22% blame foreign manufacturers.

Gold Treads Water Pending Additional Fed Hints

Haiden Holmes

Feb 21, 2023 11:27

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Gold prices hovered slightly around six-week lows on Tuesday, as traders waited for more monetary policy clues from the Federal Reserve's February meeting minutes before placing large wagers.


This week, markets were also anticipating a spate of Fed speakers, as hot U.S. inflation and a robust labor market put the central bank's policies in the spotlight.


Although U.S. markets were closed on Monday for a holiday, trading on gold and other metals has been limited so far this week. The continued demand for the dollar in Asian and European trade capped the price of metal.


At 20:32 ET, spot gold was unchanged at $1,841.59 per ounce, and gold futures were slightly changed at $1,850.25 per ounce (01:32 GMT). Both assets have suffered three consecutive weeks of losses.


Hotter-than-expected The recent gain in gold prices was abruptly halted by the U.S. inflation data as investors sharply reviewed their expectations for interest rate hikes this year.


The Fed has sufficient motivation to continue to raise interest rates due to persistent inflation and indicators of a robust labor market. Wednesday's release of the minutes from the Fed's February meeting is expected to confirm the central bank's hawkish position.


An increase in U.S. Treasury yields and the value of the dollar weighted hard on non-yielding assets such as gold and other metals. With U.S. yields and interest rates expected to grow further in tandem, the near-term picture for gold remained bleak, as Fed officials cautioned that U.S. interest rates could surpass 6% this year.


Gold and other precious metals could profit from safe-haven buying later in the year, particularly if slower economic growth pushes the Federal Reserve to reverse its hawkish strategy.


On Tuesday, prices for other precious metals were modest. Futures for platinum increased 0.2% to $929.40 per ounce, while futures for silver decreased 0.2% to $21.780 per ounce.


Copper prices declined marginally on Tuesday, following a 1.5% increase in the previous session, despite persistent optimism on China's economic rebound.


Futures for high-grade copper dipped 0.1% to $4.1730 per pound.


Monday's decision by the People's Bank to maintain historically low mortgage rates bolstered optimism for a Chinese economic revival. Although the action was widely anticipated, it showed that the administration intended to maintain accommodating policies to stimulate economic growth.

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