gold futures price Closed Wednesday (March 2), down $21.50, pressured by the dollar’s appreciation. and the rebound in US government bond yields
gold futures price Closed Wednesday (March 2), down $21.50, pressured by the dollar’s appreciation. and the rebound in US government bond yields
Comex gold contract Delivered in April It fell $21.50 to close at $1,922.30 an ounce.
A stronger dollar will reduce the attractiveness of gold. by making gold contracts more expensive for holders of other currencies As the rebound in US Treasury yields increases the opportunity cost of holding gold. Because gold is an asset that does not return in the form of interest.
Investors keep an eye on the crisis in Ukraine. The Russian and Ukrainian delegations will hold a second round of peace talks today following the first round of talks failed to reach an agreement.
Investors will also follow U.S. Federal Reserve Chairman Jerome Powell’s statement to the House of Representatives Committee on Monetary Services today.
Mr Powell stated that The Fed will continue to follow its plan to raise interest rates this month to curb inflation. Although the crisis in Ukraine has created a lot of uncertainty regarding future prospects.
Mr Powell stated that Soaring inflation and a tight labor market are the reasons for the Fed to raise interest rates.
“We expect it to be appropriate for the Fed to raise its short-term interest rate target at our meeting this month. And the Fed will downsize its balance sheet later this year. from the current level of 8.5 trillion dollars Near-term effects on the US economy from Russia’s invasion of Ukraine, the resulting war, sanctions. and upcoming events There is still a lot of uncertainty. We must act according to the information received. and changing trends,” said Powell.
Powell, however, did not signal how quickly and strongly the Fed would raise interest rates. by stating only that The Fed expects inflation to slow this year.
In addition, Mr Powell stated that Covid-19 epidemic has had a slight impact on the economy While employment remains strong And inflation is the most important risk factor.
The US Department of Labor will release the number of nonfarm payrolls for February on Friday. While analysts predicted that The number of jobs will increase by 415,000 in the month.
Earlier, the US Department of Labor said Non-farm payrolls rose 467,000 in January. The unemployment rate rose to 4.0%, above analysts’ forecast of 3.9 percent.
