Gold prices are on the move lower after a new wave of Covid lockdowns across China sent commodity prices lower. That hurt gold-friendly inflation expectations ahead of this week's FOMC decision. Get your market update from FxWestwater here:
Gold prices fell into Tuesday’s Asia-Pacific trading session after peace talks concluded for the day between Ukrainian and Russian negotiators. While little progress was made, the negotiations are set to resume tonight, and hopes are rising over the prospect of ending the conflict. That hope is being reflected in the global financial market through a slightly risk-on tone. A ceasefire is the most immediate concession being sought from Ukrainian diplomats.
That slight risk-on tone weighed on gold prices, which have risen sharply since the war started. Some of the premium priced into gold was in response to an acute increase across commodity prices, which inflamed inflation expectations. That benefited gold’s inflation-hedging appeal. Commodities saw broad weakness overnight on a new wave of Chinese Covid lockdowns, withprices falling more than 5%.
The yellow metal may see more downside this week if talks between Ukraine and Russia advance. A ceasefire agreement would mark a significant achievement that would likely drag gold prices even lower. Traders will be monitoring the newswires on that front closely. Meanwhile, reports around Kyiv show that fighting has only intensified, and several more reports of civilian casualties have crossed the wires.
Gold traders will also be keenly focused on the Federal Reserve’s interest rate decision due out later this week. Theis expected to hike its benchmark rate by 25 basis points in the first US rate hike since the Covid pandemic started. The committee’s updated economic projections, including its so-called “dot plot,” is another potential market mover.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Gold futures skid sharply lower as investors watch Ukraine-Russia, await Fed decisionGold futures on Monday head sharply lower as investors watch the third week of the invasion of Ukraine by Russia and awaited a crucial Fed decision.
Weiterlesen »
Can Gold Price recover the $2,000 level?Gold Price is bouncing from a fresh one-week low of $1,954.17 a troy ounce, still firmly down for the day. The bright metal came under selling pressur
Weiterlesen »
Gold Price Forecast: XAU/USD points south to $1,900 amid ongoing downbeat momentumGold price is heavy so far this Tuesday’s trading, meandering near weekly lows below $1,940 amid a mixed market mood. Focus is on Tuesday’s close as t
Weiterlesen »
Gold Price Forecast: XAU/USD to suffer a substantial drop on a break below $1,914 – TDSGold bugs could find themselves offloading length in a vaccuum. A break under the $1,914 mark would leave XAU/USD vulnerable to further downfalls, str
Weiterlesen »
Gold Price Forecast: XAU/USD eyes $1,950 as the next bearish target – Confluence DetectorGold price is facing a double whammy from an improved market mood on hopes for diplomacy on the Ukraine crisis. While the expected 25 bps Fed rate hik
Weiterlesen »
Stocks rise as oil and gold retreatU.S. stocks were trending higher Monday morning as oil took a downward turn.
Weiterlesen »