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Market News International gold prices rose slightly, the U.S. index fell from a 16-month high, the FED wants to beat Tai Chi to the end
International gold prices rose slightly, the U.S. index fell from a 16-month high, the FED wants to beat Tai Chi to the end
On November 17, international gold prices rose slightly, covering part of the overnight decline. The U.S. dollar index has fallen from a 16-month high. Prior to this, US retail sales jumped more than expected, pushing the dollar soaring. Fed officials called for patience, saying that price pressures may subside on their own.
2021-11-17
8309
On Wednesday (November 17), international gold prices rose slightly, covering part of the overnight decline. Previously, US retail sales jumped more than expected, pushing the dollar to a 16-month high. But Fed officials called for patience, saying that price pressures may subside on their own.
At 15:13 GMT+8, spot gold rose 0.24% to US$1854.99 per ounce; the main COMEX gold contract rose by 0.16% to US$1857.1 per ounce; the US dollar index rose by 0.06% to 96.01.
The price of gold once rose to the highest level since June 14 to $1,87.15 per ounce overnight, but ended up down by more than 0.6% to $1,850.63 per ounce. The US dollar index hit a new high of 96.266 since July 17, 2020 on Wednesday.
Harshal Barot, a senior senior research consultant in South Asia at Metals Focus, said: "As inflation is still rising, the macro background still supports gold, but the continued strength of the U.S. dollar inhibits gold's upside."
Supported by data showing a jump in retail sales in the US last month, the U.S. dollar is close to a 16-month high. Barot said: “The more positive economic data investors get, the greater the market’s expectations of the Fed’s faster rate hike.”
At the same time, US President Biden is about to make a decision on who will be the chairman of the Federal Reserve for the next four years. Biden said on Tuesday that he will make a final decision in about four days.
As if to illustrate, whoever serves as the chairman of the Fed will face the challenge of reaching a policy consensus. San Francisco Fed Chairman Daley called on the central bank to be patient on Tuesday, saying that as the epidemic cools, price pressures may subside on their own.
Biden has been touting the benefits of two pieces of legislation in the past few months. The two bills include a $1.75 trillion "Build Back Better" plan and a separate $1 trillion infrastructure plan.
William Foster, vice president and (sovereign risk) senior credit officer of Moody's Investor Services, said that these two pieces of legislation "should not have any real material impact on inflation." Foster added that the impact of these spending plans on the fiscal deficit will be quite small, because spending will be spread over a relatively long time frame.
Mark Zandi, chief economist at Moody's Analytics, said: "These bills will not increase inflationary pressures because these policies will help increase long-term economic growth by increasing productivity and labor growth, thereby reducing inflation."
The dovish stance of the European Central Bank also supports the U.S. dollar, which adds an unfavorable factor to the price of gold. European Central Bank President Christine Lagarde will speak later on Wednesday. Earlier, she said on Monday that tightening monetary policy now to control inflation may stifle the euro zone’s recovery.
At 15:13 GMT+8, spot gold rose 0.24% to US$1854.99 per ounce; the main COMEX gold contract rose by 0.16% to US$1857.1 per ounce; the US dollar index rose by 0.06% to 96.01.
The price of gold once rose to the highest level since June 14 to $1,87.15 per ounce overnight, but ended up down by more than 0.6% to $1,850.63 per ounce. The US dollar index hit a new high of 96.266 since July 17, 2020 on Wednesday.
Harshal Barot, a senior senior research consultant in South Asia at Metals Focus, said: "As inflation is still rising, the macro background still supports gold, but the continued strength of the U.S. dollar inhibits gold's upside."
Supported by data showing a jump in retail sales in the US last month, the U.S. dollar is close to a 16-month high. Barot said: “The more positive economic data investors get, the greater the market’s expectations of the Fed’s faster rate hike.”
At the same time, US President Biden is about to make a decision on who will be the chairman of the Federal Reserve for the next four years. Biden said on Tuesday that he will make a final decision in about four days.
As if to illustrate, whoever serves as the chairman of the Fed will face the challenge of reaching a policy consensus. San Francisco Fed Chairman Daley called on the central bank to be patient on Tuesday, saying that as the epidemic cools, price pressures may subside on their own.
Biden has been touting the benefits of two pieces of legislation in the past few months. The two bills include a $1.75 trillion "Build Back Better" plan and a separate $1 trillion infrastructure plan.
William Foster, vice president and (sovereign risk) senior credit officer of Moody's Investor Services, said that these two pieces of legislation "should not have any real material impact on inflation." Foster added that the impact of these spending plans on the fiscal deficit will be quite small, because spending will be spread over a relatively long time frame.
Mark Zandi, chief economist at Moody's Analytics, said: "These bills will not increase inflationary pressures because these policies will help increase long-term economic growth by increasing productivity and labor growth, thereby reducing inflation."
The dovish stance of the European Central Bank also supports the U.S. dollar, which adds an unfavorable factor to the price of gold. European Central Bank President Christine Lagarde will speak later on Wednesday. Earlier, she said on Monday that tightening monetary policy now to control inflation may stifle the euro zone’s recovery.
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