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Market News International gold prices fall, waiting for US CPI data, FED must face their grievances
International gold prices fall, waiting for US CPI data, FED must face their grievances
On November 10, international gold prices fell, subject to the rebound of the US dollar index. Investors are waiting for important US inflation data to be released later in the day, which may have an impact on the Fed's next policy action. U.S. manufacturers generally complained about long delivery times for raw materials, continued shortages of key materials, rising commodity prices, and difficulties in product transportation.
2021-11-10
11412
On Wednesday (November 10), international gold prices fell, subject to a rebound in the US dollar index. Investors are waiting for important US inflation data to be released later in the day, which may have an impact on the Fed's next policy action.
At 15:21 GMT+8, spot gold fell 0.36% to US$1825.27 per ounce; the main COMEX gold contract fell 0.22% to US$1826.7 per ounce; the US dollar index rose 0.14% to 94.099.
The US October Consumer Price Index (CPI) will be released at 21:30 GMT+8 on Wednesday. The overall and core CPI annual rates are expected to be higher than expected, increasing by 5.9% and 4.3% respectively, exceeding the 2% target set by the Federal Reserve More than twice, due to tight labor markets and chaotic global supply chains.
Ryan Sweet, senior economist at Moody’s in Pennsylvania, said: “Inflationary pressures may not fade as quickly as previously thought, especially for companies, because of global supply chain issues. High inflation is increasing the Fed’s suffering. They are under pressure, but they show no signs of yielding because they want the labor market to achieve full employment."
A White House official said that US President Biden held talks with CEOs of Wal-Mart, UPS, FedEx and Target on Tuesday to discuss Speed up delivery and lower consumer prices. Biden is facing political pressure due to rising prices, and he has been working hard to eliminate transportation bottlenecks.
A survey previously published by the Institute for Supply Management (ISM) showed that manufacturers and service industry price indicators accelerated in October. Manufacturers complained about "long delivery times for raw materials, continued shortages of key materials, rising commodity prices, and difficulty in product transportation." .
Investors currently expect the Fed to raise interest rates in the middle of next year. However, there are more and more debates among the Fed decision-makers about how many more jobs the economy can add and how long high inflation can be tolerated. Fed Chairman Powell reiterated on Tuesday that he continues to pay attention to those workers who are still holding a wait-and-see attitude towards returning to the job market. “When we assess whether we are maximizing employment, we will deliberately review a series of indicators.”
Powell also said last week that although it is uneasy about higher-than-expected inflation, the Fed will remain patient and prioritize further maximizing employment before raising interest rates. However, some Fed officials pointed out that strong economic growth and job growth prove that the economy can start to be self-reliant.
Harshal Barot, senior research consultant for South Asia at Metals Focus, said: “Rising interest rates may not be as fast as the market initially expected, and inflation continues to remain high, creating a favorable macro background for the precious metals rebound. However, if the CPI data is higher than expected, it may be Leading gold bulls to profit, because people will deepen expectations that the Fed will have to start raising interest rates to control inflation." Barot added that gold is also facing resistance at $1,830.
At 15:21 GMT+8, spot gold fell 0.36% to US$1825.27 per ounce; the main COMEX gold contract fell 0.22% to US$1826.7 per ounce; the US dollar index rose 0.14% to 94.099.
The US October Consumer Price Index (CPI) will be released at 21:30 GMT+8 on Wednesday. The overall and core CPI annual rates are expected to be higher than expected, increasing by 5.9% and 4.3% respectively, exceeding the 2% target set by the Federal Reserve More than twice, due to tight labor markets and chaotic global supply chains.
Ryan Sweet, senior economist at Moody’s in Pennsylvania, said: “Inflationary pressures may not fade as quickly as previously thought, especially for companies, because of global supply chain issues. High inflation is increasing the Fed’s suffering. They are under pressure, but they show no signs of yielding because they want the labor market to achieve full employment."
A White House official said that US President Biden held talks with CEOs of Wal-Mart, UPS, FedEx and Target on Tuesday to discuss Speed up delivery and lower consumer prices. Biden is facing political pressure due to rising prices, and he has been working hard to eliminate transportation bottlenecks.
A survey previously published by the Institute for Supply Management (ISM) showed that manufacturers and service industry price indicators accelerated in October. Manufacturers complained about "long delivery times for raw materials, continued shortages of key materials, rising commodity prices, and difficulty in product transportation." .
Investors currently expect the Fed to raise interest rates in the middle of next year. However, there are more and more debates among the Fed decision-makers about how many more jobs the economy can add and how long high inflation can be tolerated. Fed Chairman Powell reiterated on Tuesday that he continues to pay attention to those workers who are still holding a wait-and-see attitude towards returning to the job market. “When we assess whether we are maximizing employment, we will deliberately review a series of indicators.”
Powell also said last week that although it is uneasy about higher-than-expected inflation, the Fed will remain patient and prioritize further maximizing employment before raising interest rates. However, some Fed officials pointed out that strong economic growth and job growth prove that the economy can start to be self-reliant.
Harshal Barot, senior research consultant for South Asia at Metals Focus, said: “Rising interest rates may not be as fast as the market initially expected, and inflation continues to remain high, creating a favorable macro background for the precious metals rebound. However, if the CPI data is higher than expected, it may be Leading gold bulls to profit, because people will deepen expectations that the Fed will have to start raising interest rates to control inflation." Barot added that gold is also facing resistance at $1,830.
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