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SPACEX shares continued their decline, falling 2% in pre-market trading.Wedbush: Raises target price for Micron Technology (MU.O) from $550 to $1,300.June 18th - Analyst Divyang Shah stated that, as widely expected, the Bank of England kept interest rates unchanged at 3.75% at its June meeting. The statements guidance remained unchanged, with the Bank of England reiterating its "standby to act if necessary" to curb inflationary pressures. The voting results also introduced a degree of surprise. At the April meeting, only Chief Economist Peale supported a rate hike; at this meeting, Monetary Policy Committee member Green also joined the pro-rate-hike camp, with both voting in favor of a rate increase.Text of the US-Iran Memorandum of Understanding: Following the signing of the memorandum of understanding, the United States will soon grant waivers for Iranian oil exports.On June 18th, the Bank of England held its fourth consecutive meeting, keeping interest rates unchanged at 3.75%, believing that a rate hike was premature given the unclear strength of rising inflationary pressures. The Monetary Policy Committee voted 7-2 to maintain the rate, in line with market expectations. Monetary Policy Committee member Green and Chief Economist Peale advocated a 25 basis point hike. Most other members largely maintained Governor Baileys stance of "actively maintaining the status quo." Bailey argued that this stance itself constituted an effective tightening compared to market expectations of a rate cut before the conflict. Both Peale and Green stated that a rate hike now would help curb household expectations of future inflation. According to the banks quarterly survey, household inflation expectations have risen to their highest level since at least 2009. The preliminary ceasefire agreement reached between the US and Iran is expected to reopen the Strait of Hormuz and lower oil prices. Given the UKs heavy reliance on imported natural gas, maintaining the agreement would be beneficial to the UK. However, Governor Bailey stated, "Regardless of what the future holds, the higher energy prices of the past four months already indicate that some inflationary pressures are building." The Bank of England expects inflation to rise above 3.25% in the fourth quarter, up from 2.8% in May, but down from the 3.6% to 3.7% forecast in April under two of the three main scenarios. The outlook for economic growth is also slightly more optimistic, with potential growth projected at 0.2% per quarter, up from 0.1% in the previous forecast.

Gold price remains unchanged at $1,740 as bulls seek direction

Haiden Holmes

Jul 11, 2022 11:10

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Call it a literal "Goldilocks" scenario. Goldilocks does not relate to an ideal economic state in which things are neither increasing or shrinking excessively; rather, it relates to the fact that gold is nearly stuck around $1,740 per ounce while traders seek to discern the yellow metal's path.


Gold futures for delivery in August on the New York Comex climbed $2.60, or 0.2 percent , to $1,742.30 per ounce. It declined 3,3 percent for the week, its fourth straight fall since the week ending June 10. The current week's fall was also the most severe since the week ending May 6.


Despite the terrible weekly figures, gold has experienced some resistance since Wednesday's 10-month low of $1,730.70. Gold for August delivery on the Comex has hardly moved above or below $1,740 since reclaiming ground from that level.


According to others, this means that gold may have already reached, or is close to reaching, its lowest point and likely has no further to go.


Gold trade on Friday was affected by increasing uncertainty after the revelation of good June employment numbers from the United States.


The Labor Department announced that U.S. firms created 372,000 jobs last month, which was about 100,000 more than what analysts had projected, while the unemployment rate stayed at 3.6 percent for the third straight month. Later, from the White House, President Joe Biden reported that the United States has restored all 20 million jobs lost during the coronavirus pandemic outbreak in March and April 2020.


Theoretically, such findings seemed good for the U.S. economy. It was not, however, in the present inflationary situation, where the Fed wants the red-hot job market and wage growth to subside in order to diminish Americans' need for things.


For gold, there was an additional complication: the Federal Reserve had already planned to boost interest rates by 75 basis points in July, as it did in June. Would the Fed be willing to take additional action if the fed funds rate continues to price in a 75 basis point hike for July on Friday? Or will the other three probable rate hikes this year be 75 basis points or higher?

"The short end of the yield curve signals that the Federal Reserve has the green light to tackle inflation vigorously, while the long end indicates that a recession is imminent," said Ed Moya, an analyst at the online trading platform OANDA.


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