gold futures price Closed Tuesday (June 7) rebounded $8.40 as investors flocked to gold as a safe haven. Amid concerns regarding the global economy
gold futures price Closed Tuesday (June 7) rebounded $8.40 as investors flocked to gold as a safe haven. Amid concerns regarding the global economy
Comex gold contract Delivered in Aug. It rose $8.40 to close at $1,852.10 an ounce.
The World Bank released a report on the global economic outlook today. It lowered its forecast for global economic growth this year to 2.9 percent from 4.1 percent, amid the impact of Russia’s military invasion of Ukraine. which has aggravated the damage caused by the epidemic of COVID-19
World Bank President David Malpass said the world economy was hit by the war between Russia and Ukraine, China’s use of lockdown measures to curb the spread of COVID-19, supply chain disruptions. including the risk of stagflation, which is a weak economy But inflation soars which happened in the 1970s.
The World Bank expects developed economies to grow only 2.6 percent this year and slow to 2.2 percent next year, following hitting 5.1 percent last year. It’s growing 3.4% this year following hitting 6.6 percent last year.
The World Bank also expects Ukraine’s economy to shrink 45.1 percent this year, while Russia’s economy will shrink 8.9 percent.
Investors will keep an eye on the Consumer Price Index (CPI) on Friday. After the US Department of Commerce released the personal consumption expenditure (PCE) price index last week. This indicates that US inflation has passed its peak.
Meanwhile, markets are keeping an eye on the US Federal Reserve (Fed) meeting on June 14-15, with the Fed expected to raise interest rates by 0.50% at the meeting. including in the July meeting to extract inflation
The Fed has started to reduce the size of the balance sheet. Quantitative Tightening (QT) in June According to a resolution at its May 4 monetary policy meeting, starting June 1, the Fed will reduce its balance sheet by $47.5 billion a month. And starting Sept. 1, the Fed will double its balance sheet cuts to $95 billion/month.
