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Market News International gold prices are under pressure, and U.S. inflation expectations may push the Fed to a dead end
International gold prices are under pressure, and U.S. inflation expectations may push the Fed to a dead end
On Thursday (June 9), international gold prices were under pressure, subject to rising U.S. bond yields, reducing the attractiveness of non-yielding gold. Investors were cautious ahead of U.S. inflation data, which is expected to affect the Fed's path to rate hikes. IMF officials believe that there is a risk of "unanchored" inflation expectations. Higher interest rates may be needed to ease the tight supply of goods and labor.
2022-06-09
7839
On Thursday (June 9), international gold prices were under pressure, subject to rising U.S. bond yields, reducing the attractiveness of non-yielding gold. Investors were cautious ahead of U.S. inflation data, which is expected to affect the Fed's path to rate hikes.
At GMT+8 15:16, spot gold fell 0.18% to US$1,849.83 per ounce; the main COMEX gold futures contract fell 0.24% to US$1,852.1 per ounce; the US dollar index rose 0.01% to 102.572.
U.S. inflation data for May will be released on Friday (June 10). The market expects that the overall and core CPI of the United States are expected to rise by 8.3% and 5.9% year-on-year respectively in May. The prospect of aggressive rate hikes by the Fed is hard to shake. The Fed is expected to continue raising interest rates in May by 50 basis points each in June and July.
White House press secretary Pierre told reporters on Wednesday (June 8): "We expect headline inflation numbers to rise and the Ukraine war to have some impact on core inflation, especially when you see the rise in airfare and jet fuel costs. influence."
U.S. Treasury Secretary Janet Yellen was questioned by lawmakers on inflation for the second day in a row on Wednesday. She said a reading above 8% would be "unacceptable" for the U.S., but argued that the massive anti-epidemic fiscal stimulus previously pursued by the Biden administration had contributed only "moderately" to upward inflation.
Gopinath, the International Monetary Fund's first vice president, said on Wednesday that according to current forecasts, U.S. inflation may be above the Fed's 2% target for a long time, and there is a risk of "unanchored" inflation expectations. A sharper increase in interest rates may be required to ease the tight supply of goods and labor, but would leave the economy at risk of a hard landing.
Earlier this week, World Bank President David Malpass warned that faster-than-expected tightening by central banks could push some countries into debt crises similar to those of the 1980s.
Michael Langford, director of corporate consulting firm AirGuide, said: "The market is currently full of uncertainty, and the price of gold has remained in a range-bound pattern in the short term. However, since April, the price of gold has been on a downward trend... There are few catalysts for the price of gold to break out, and the next few months The overall downtrend is more likely to continue."
At GMT+8 15:16, spot gold fell 0.18% to US$1,849.83 per ounce; the main COMEX gold futures contract fell 0.24% to US$1,852.1 per ounce; the US dollar index rose 0.01% to 102.572.
U.S. inflation data for May will be released on Friday (June 10). The market expects that the overall and core CPI of the United States are expected to rise by 8.3% and 5.9% year-on-year respectively in May. The prospect of aggressive rate hikes by the Fed is hard to shake. The Fed is expected to continue raising interest rates in May by 50 basis points each in June and July.
White House press secretary Pierre told reporters on Wednesday (June 8): "We expect headline inflation numbers to rise and the Ukraine war to have some impact on core inflation, especially when you see the rise in airfare and jet fuel costs. influence."
U.S. Treasury Secretary Janet Yellen was questioned by lawmakers on inflation for the second day in a row on Wednesday. She said a reading above 8% would be "unacceptable" for the U.S., but argued that the massive anti-epidemic fiscal stimulus previously pursued by the Biden administration had contributed only "moderately" to upward inflation.
Gopinath, the International Monetary Fund's first vice president, said on Wednesday that according to current forecasts, U.S. inflation may be above the Fed's 2% target for a long time, and there is a risk of "unanchored" inflation expectations. A sharper increase in interest rates may be required to ease the tight supply of goods and labor, but would leave the economy at risk of a hard landing.
Earlier this week, World Bank President David Malpass warned that faster-than-expected tightening by central banks could push some countries into debt crises similar to those of the 1980s.
Michael Langford, director of corporate consulting firm AirGuide, said: "The market is currently full of uncertainty, and the price of gold has remained in a range-bound pattern in the short term. However, since April, the price of gold has been on a downward trend... There are few catalysts for the price of gold to break out, and the next few months The overall downtrend is more likely to continue."
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