Gold FuturesWednesday (21st) rebounded from lows since April 2020, despite the Federal Reserve (Fed) raising interest rates three times in a row by 3 yards (75 basis points), but because Russian President Vladimir Putin ordered a partial mobilization order and said it would not hesitate to With the use of nuclear weapons, the situation of the Russian-Ukrainian war has increased. Supported by a small amount of safe-haven demand, precious metals have climbed higher.
New York for December deliveryGold FuturesPrices settled up $10.60, or 0.6 percent, at $1,681.70 an ounce, rebounding from a low since April 2020 hit on Tuesday.
Two hours after the Fed decision was announced, at around 4:12 p.m. ET, the spotgoldIt held on to gains, rising 0.7% to $1,673.86 an ounce.
Putin issued a partial mobilization order earlier on Wednesday to recruit 300,000 reservists to the battlefield. This is the first time Russia has issued such an order since World War II, and said that it will do everything possible to defend Russian territory. condemn.
William Masters, a senior sales trader at Saxo Markets UK, said: “People originally thought the Fed decision was the most important event on Wednesday, but Putin’s partial mobilization order sent the market uproar.”
but,goldThe gains were relatively modest, as the appreciation of the U.S. dollar and the sharp rise in U.S. bond yields restrained the gains in gold prices.The former will weigh on dollar-denominated commodities, while the latter will increase holdingsgoldopportunity cost.
Raffi Boyadjian, chief investment strategist at XM, said that this week is a super central bank week, and after the Fed, the United Kingdom, Japan, and the Swiss central bank will announce resolutions, so investors avoid sharply adjusting their positions before that. Unless there is a new development in the Russian-Ukrainian war, geopolitical factors will still not override Fed decisions.
The Fed on Wednesday announced three consecutive rate hikes by 3 yards (75 basis points) and signaled that more rate hikes may be on the way.
Gold FuturesThe market closes half an hour before the Fed’s 2:00 announcement. After the decision statement was issued,goldSpot prices fell immediately, but quickly reversed course, rising more than 1%.
David Meger, director of metals trading at High Ridge Futures, said a 3-yard rate hike was already expected in the market, which saw gold prices rebound sharply from their lows.
Rupert Rowling, market analyst at Kinesis Money, said: “Compared to a few months ago, the Fed’s rate hike has become a conservative option. The price of gold is currently stable at the level below $ 1,700, and it is difficult to find a short-term increase in gold prices. factor.”
Other Metal Commodities Trading
- Delivered in DecemberSilver FuturesIt was up 33.7 cents, or 1.8 percent, at $19.52 an ounce.
- Delivered in DecemberCopper futuresIt slipped 0.7% to trade at $3.4780 a pound.
- Delivered in OctoberPlatinum FuturesIt rose 0.3 percent to settle at $925.80 an ounce.
- Delivered in DecemberPalladium FuturesIt rose 0.9 percent to settle at $2,191 an ounce.