International gold prices continue to hit a two-month high, but the rise slows down, and the market waits for new guidance

On Tuesday (November 9), the international gold price continued to hit a new high since September 7 to US$1,827.17 per ounce. Due to the weakening of the US dollar and the decline in U.S. bond yields, the rise in gold prices slowed down. Investors are waiting for key U.S. inflation data to gauge the Fed’s next interest rate hike.

At 14:13 GMT+8, spot gold rose 0.10% to US$1826.02 per ounce; the main COMEX gold contract fell 0.01% to US$1827.8 per ounce; the US dollar index fell 0.18% to 93.381.


Nicholas Frappell, the global general manager of ABC Bullion, said that gold faces strong resistance at around 1835 US dollars. The trend of gold in the next few trading days is mainly determined by the US Consumer Price Index (CPI) this Wednesday (November 10). report.

Earlier, in speeches by several Fed officials, they expressed growing concern about a longer-lasting rise in prices. But Fed Vice Chairman Clarida and Chicago Fed Chairman Evans hinted that raising interest rates is not yet possible.

Fed Vice Chairman Clarida said that although the Fed is “some distance away from considering raising interest rates”, if his current expectations for the economy prove to be correct, the economy “will meet the target range for raising the federal funds rate by the end of 2022. Necessary conditions".

Chicago Fed Chairman Evans reiterated that the current surge in inflation may be temporary, and as supply-side pressures are resolved, inflation will subside. After his speech, he told reporters that the “barriers” for accelerating the reduction of quantitative easing are “high”. To do this, he needs to see a “completely different” world from what he currently expects. He believes that the Fed can wait until 2023 before it needs to raise interest rates.

But St. Louis Federal Reserve Chairman Brad reiterated his view that the Fed will need to raise interest rates twice next year because the US job market is already very tight and rising salary costs are exacerbating inflation.

The "dot plot" of interest rates shows that the Fed officials' interest rate expectations are moving towards the direction of raising interest rates next year, but the number of policymakers who are expected to raise interest rates for the first time in 2022 is equal to the number of policymakers who are expected to start raising interest rates in 2023; most of the decisions are made. The author stated that interest rates will be steadily increased in 2023 and 2024.

The Democrats in the House of Representatives cleared procedural obstacles for a $1.75 trillion bill covering education, healthcare, climate change and other fields last weekend. Prior to this, another $1 trillion infrastructure bill was passed to solve the problems of roads, bridges and other physical infrastructure in the United States.

White House National Economic Committee Director Brian Deese said on Monday that he expects members of Congress to resolve issues related to the Democratic Party’s social spending bill this week and vote on the bill in the House of Representatives next week.