gold futuresOn Wednesday (8th), the Federal Reserve (Fed) Chairman Jerome Powell testified to Congress for the second day, reiterating that it may need to expand interest rate hikes to fight inflation, making the previous day the second largest decline this year.goldslipped once more.
New York for April deliverygold futuresPrices were down $1.40, or nearly 0.1%, at $1,818.60 an ounce.gold futuresIt fell 1.9 percent, or $34.60, on Tuesday, its second-biggest one-day drop this year.
On Wednesday, Powell reiterated the previous day’s message, suggesting that interest rates may rise higher and faster, but everything is still under discussion, and everything depends on economic data before the decision-making meeting in two weeks.
He told the House Financial Services Committee that the Fed has not made any decisions regarding the March meeting.
Naeem Aslam, chief investment officer at Zaye Capital Markets, said Ball’s testimonydollar indexcome back to life, yesgoldIt’s not good news.But Powell’s remarks also showed that economic data isgoldThe most important piece of information for traders, if the data is weak, might prompt the Fed to change its discourse on monetary policy.
Nicky Shiels, head of metals strategy at MKS PAMP SA, said: “goldCan jump on any dovish statistic, or down on any statistic that reinforces Powell’s hawkish talk. Powell’s message of “higher rates for longer” raised the risk of a hard landing. “
Shiels predicted that as Powell’s speech made the magnitude of interest rate hikes and expectations of the terminal interest rate variable, before the March decision-making meeting, thegoldMarkets can be conservative.
The rally in the dollar and U.S. Treasury yields paused temporarily on Wednesday, allowinggoldThe decline was slight. ICE dollar index (DXY) rose by less than 0.1%, while 10-Year U.S. Treasury YieldAt 3.984%, slightly up 1.2 basis points.
becausegoldIt does not bear interest itself. When the interest rate hike is expected to increase, holdgoldThe opportunity cost ofgoldCharm dimmed.A stronger U.S. dollar allows overseas buyers to buy U.S. dollar-denominatedgoldA higher amount will be required.
Phillip Streible, chief market strategist at Blue Line Futures, said: “goldThe market still has a lot of event risk to digest, including today’s Powell testimony, this Friday’s non-farm payrolls report, and next Tuesday’s consumer price index (CPI). “
The United States announced on Wednesday that the “small non-agricultural” ADP private employment population increased by 242,000 in February, which was greater than the market estimate of 205,000.
According to Rupert Rowling, market analyst at Kinesis Money,goldAt present, it can still hold the integer mark of US$1,800 per ounce, because the risk of weak data and the support of central bank buying, especially the buying of the central banks of China and Turkey over the past year, make the low-end support very strong.
Comex Metals Commodities Trading
- delivered in MaySilver futuresThey were down 5 cents, or 0.2%, at $20.151 an ounce.
- delivered in Maycopper futuresThey were up 5 cents, or 1.3 percent, at $4.027 apiece.
- delivered in AprilPlatinum FuturesIt gained $4.30, or 0.5%, to $940.60 an ounce.
- delivered in JunePalladium FuturesIt fell $8.50, or 0.6%, to settle at $1,332.10 an ounce, its lowest record since June 2019 for the second day in a row.
