Gold on high waiting for Fed meeting
2023.01.10 04:09
Gold on high waiting for Fed meeting
By Tiffany Smith
Budrigannews.com – On Tuesday, gold prices remained close to seven-month highs as markets awaited key inflation data and a speech by Federal Reserve Chair Jerome Powell on U.S. monetary policy.
As optimism over a possible slowdown in U.S. interest rate hikes increased, gold prices experienced significant gains in recent sessions. The world’s largest economy’s inflation readings for November and signs of a slowing jobs market appeared to indicate that price pressures had reached their peak, necessitating a less hawkish Fed stance.
When Powell visits Sweden later in the day, the markets anticipate that he will shed additional light on this trend.
by 20:54 ET (01:54 GMT), it had increased by 0.2% to $1,875.19 an ounce and by 0.1% to $1,879.30 an ounce. The first week of 2023 saw a rise in the price of gold by more than 2%.
This week’s focus is also on data on U.S. inflation, which is expected to have slowed even more in December than it did in November. However, given that inflation is still trending well above the Fed’s annual target range, markets will closely monitor any slowdown.
Gold prices have risen in recent sessions as markets became wary of a possible recession this year due to high inflation and rising interest rates and increased demand for safe havens.
Fears that global economic growth will slow in 2023 were fueled by gloomy business activity data prints from several major economies and signs of cooling.
Demand for gold as a safe haven increased as a result of this and expectations that the Fed would not raise interest rates as much.
When the Fed meets in February, it is widely anticipated to do so. However, the central bank has also issued a warning that it may continue to raise interest rates.
This year’s performance of the gold and other metal markets will likely be determined by the course of U.S. monetary policy.
Copper prices were muted among industrial metals on Tuesday, but they were just below their highest level since mid-June.
More Oil falls after a slight rise
dropped by 1% to $4.0085 per pound. Markets bet on an economic recovery in China, the world’s largest copper importer, which resulted in a sharp rise in red metal prices in recent weeks.
It is anticipated that the country’s recent relaxation of nearly all of its COVID restrictions will eventually fuel an economic recovery.
However, China will also have to deal with rising infections in the near future.
