Gold futures prices narrow before the Fed meeting

[Kevin Durant]

Gold futures prices narrow before the Fed meeting

Gold futures prices narrow today. Ahead of the Federal Reserve's (Fed) monetary policy meeting this week.

Gold contract on COMEX (Commodity Exchange) for delivery in Feb. Add $3.00 or 0.17% to $1,787.80/ounce.

Gold prices are also pressured by the strong dollar. which will reduce the attractiveness of gold by making gold contracts more expensive for holders of other currencies.

Investors keep an eye on the Fed's monetary policy meeting on Dec. 14-15.

Earlier, Fed Chairman Jerome Powell signaled an end to his quantitative easing (QE) bond purchase program earlier than expected. This will pave the way for the Fed to raise interest rates faster than expected.

Mr Powell said The Fed may cut its QE limit by more than $15 billion a month, which will be discussed at the meeting.

Goldman Sachs released a report predicting that The Fed will increase its QE limit cut to $30 billion a month, doubling from $15 billion a month, paving the way for the Fed to raise interest rates in June 2022. This is the first rate hike since the United States faces the COVID-19 pandemic in 2020.

The CME Group's FedWatch Tool, which analyzes U.S. short-term interest rate futures, indicates that investors expect the Fed to raise interest rates by 0.25% for the first time in May or June 2022, and 61% likely the Fed will raise interest rates three times in 2022.

[Kevin Durant]

Shanghai Composite opened up 3.6 points, expecting China to ease its finances after slowing inflation.


The Shanghai Composite Index, China's stock markets opened in positive territory this morning. After China's producer price index (PPI) slowed down in December. Yesterday (Dec 12), which may allow the People's Bank of China to adopt a monetary easing policy.

The Shanghai Composite Index opened at 3,601.03, up 3.6 points, or +0.10%.

The National Bureau of Statistics (NBS) reported today that The Producer Price Index (PPI), a measure of the cost of goods at the factory door, rose 10.3% year-on-year. That was slower than November's 12.9 percent growth and below analysts' forecast of 11.1 percent.

The Consumer Price Index (CPI), a measure of inflation caused by consumer spending, rose 1.5 percent in December from an annualized rate. That was slower from a 2.3 percent gain in November and below analysts polled by Reuters had expected a 1.8 percent gain.

[Kevin Durant]

European stock markets open sharply After the Fed signaled to raise interest rates in March

The European stock market opened a sharp drop today. After US Federal Reserve Chairman Jerome Powell (Fed) signaled that there may be a rate hike in March. including having a strict policy to cope with rising inflation

Powell gave a press briefing after the monetary policy meeting this morning. “There is still a possibility that the Fed will raise interest rates without affecting the labor market. And the Fed does not deny the possibility of a rate hike of more than 0.25% considering the spike in inflation.”

The STOXX 600 index opened at 464.97 points, down 2.34 or -0.50%.

The German stock market DAX opened at 15,229.98, down 229.41, or -1.48%, and the French CAC-40 index opened at 6,879.64, down 102.32, or -1.47%.

[Kevin Durant]

The Dow closed up 153.30 points, financial stocks trail Bond Yield.

The Dow Jones Industrial Average closed higher on Friday (March 25) and the S&P500 also closed higher. As financial stocks rose after US Treasury yields surged to their highest in nearly three years.

The Dow Jones Industrial Average closed at 34,861.24, up 153.30, or +0.44%, and the S&P500 closed at 4,543.06, up 22.90, or +0.51%, while the Nasdaq closed at 14,169.30, down 22.54, or -0.16%.

in this week The Dow was up 0.3%, the S&P500 was up 1.8% and the Nasdaq was up 2%.

Financial stocks were up 1.3% and supported the S&P 500 index the most on Friday. Technology and luxury stocks were the only two groups that closed lower on Friday.

However, tech stocks and big stocks in the growth sector declined. As a result, the Nasdaq index closed lower.

Investors are evaluating the outlook for the Federal Reserve's interest rate hikes after Fed Chairman Jerome Powell said this week that The Fed needs to speed up its efforts to curb inflation. and increased the possibility of a 0.50% interest rate hike in May

Citibank economists expect The Fed will raise interest rates by 0.50% four times this year.

US Treasury yields jumped on Friday. The yield on 10-year bonds has risen to its highest level in nearly three years as markets worry about high inflation. and worried that the Fed's accelerating rate hike would slow the economy.

The 10-year bond yield was 2.492% after rising above 2.50% for the first time since May. 2019

Utilities stocks up 1.5% as investors flocked to safe-haven stocks. Amid concerns about the Russo-Ukrainian war that has been going on for more than a month

Energy stocks also supported the market, closing up 2.3 percent after a sharp jump in oil prices.

Key US economic data released on Friday were: A University of Michigan survey found that US Consumer Confidence Index It dropped to 59.4 in March, the lowest level in more than 10 years, from 62.8 in February and below the initial 59.7 level. The index of confidence may be stable at 62.8 in March.

The confidence index was affected by concerns about rising inflation. after the rise in oil prices