Latest News

Gold sinks below $1,750 on hawkish Fed comments, copper steady

0

Gold sinks below $1,750 on hawkish Fed comments, copper steady By Investing.com

Breaking News

‘;

Commodities 1 hour ago (Nov 29, 2022 00:30)

© Reuters.

By Ambar Warrick 

Investing.com– Gold prices fell below a key support level on Tuesday after hawkish comments from Federal Reserve officials brewed some uncertainty over the path of U.S. monetary policy, while copper prices steadied as markets awaited more developments in China.

St. Louis Fed President James Bullard said on Monday that the Fed has “a ways to go” on interest rate hikes, and could keep hiking them and hold them until 2024 to combat inflation. He also reiterated his view that rates need to rise by at least another 1% to between 5% and 5.25%. 

Separately, New York Federal Reserve President John Williams said the central bank will likely begin trimming rates in 2024, as inflation pressures eventually ease. He also said that borrowing costs need to rise further to bring down inflation.

Their comments boosted the dollar, with the greenback jumping nearly 0.7% on Monday. This weighed on most metal markets, particularly gold.

Spot gold was flat around $1,741.33 an ounce, while gold futures expiring in December traded around $1,740.00 an ounce, remaining in backwardation. Both instruments sank around 0.6% on Monday.

While Bullard and Williams’ comments provided some more clarity on U.S. monetary policy, they also dimmed optimism over a slower pace of rate hikes by the Fed in the coming months, given that rates will likely peak at much higher levels.

This paints a dour picture for non-yielding assets such as gold, which fell sharply this year as U.S. rates began rising.

Gold saw little safe haven demand this week, even as unprecedented civil unrest in China raised concerns over global economic disruptions. 

Copper, on the other hand, marked a volatile start to the week, sinking as much as 2% before recovering sharply to trade higher. 

The outlook for the red metal was dulled by the protests in China, which could further hamper the country’s appetite for commodities. Chinese citizens in several major cities took to the streets over the weekend to express their discontent with the country’s draconian zero-COVID policy.

Copper futures were steady around $3.6018 a pound in early trade on Tuesday. 

But some analysts opined that the protests in China may eventually push the government into relaxing its zero-COVID policy, which is at the heart of China’s economic slowdown this year. Such a scenario is likely to be positive for commodity markets.

On the supply side, reports suggested that workers at Chile’s massive Escondida copper mine will not go on strike, reducing the prospect of tight supply in the coming months. 

Gold sinks below $1,750 on hawkish Fed comments, copper steady

Oil prices slide on concerns over China’s demandBy Reuters – Nov 29, 2022

By Yuka Obayashi TOKYO (Reuters) – Oil prices dropped in early trade on Tuesday, weighed down by concerns about slowing fuel demand in top crude importer China amid strict…

Europe on course to end winter with plenty of gas: KempBy Reuters – Nov 29, 2022

By John Kemp LONDON (Reuters) -Europe’s gas inventories are on course to end the winter of 2022/23 at one of the highest levels on record – if prices stay high and provided…

Transformers, air defences needed, Ukraine tells visiting ministersBy Reuters – Nov 28, 2022

KYIV (Reuters) -Ukrainian foreign minister Dmytro Kuleba told a gathering of seven Nordic and Baltic foreign ministers on Monday that his country needed transformers and improved…

Our Apps



Terms And Conditions
Privacy Policy
Risk Warning

© 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

*Japan Unemployment Rate 2.6% In October; Job-To-Applicant Ratio 1.35

Previous article

Japan Jobless Rate Steady At 2.6% In October

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News