We recently noticed that some third-party companies and individuals impersonated the TOPONE Markets brand and illegally misappropriated our trademarks.

We Hereby Reiterate Our Statement:

  • TOPONE Markets does not provide discretionary account operation trading services, nor does it cooperate with other third-party vendors and/ or agents to provide such services.
  • TOPONE Markets staff will not promise to our customer the definite profit, please do not trust any kind of the profit promise or profit related picture, such as screenshot/ chat history, etc, all investment profit can be only viewed on our official website and application.
  • TOPONE Markets is a professional online trading platform with low spreads and zero handling fees. Be wary of any behavior that asks you for any fees directly and privately. TOPONE Markets does not charge a fee at any stage of its trading process or other fee.

If you have any questions or concerns, please feel free to reach us by clicking the "Online Customer Support" or send an email to our customer care team cs@top1markets.com. We will answer your questions and assist you promptly.

Understood
We use cookies to learn more about how you use our website and what we can improve. Continue to use our website by clicking "Accept". Details
Market News Spot gold is controlled by a strong dollar, Biden hints that Powell can "let it go"

Spot gold is controlled by a strong dollar, Biden hints that Powell can "let it go"

On Wednesday (June 1), spot gold continued to fall, hitting a new low of $1,828.38 per ounce since May 19, as the U.S. dollar index continued to rebound. U.S. President Biden met with Fed Chairman Powell, emphasizing respect for the Fed's decision-making independence, and hinted support for its efforts to control inflation. U.S. Treasury Secretary Janet Yellen has admitted that she has been wrong about the path of inflation, which is the number one concern for President Biden, and that the economic shock continues.

2022-06-01
11928
On Wednesday (June 1), spot gold continued to fall, hitting a new low of $1,828.38 per ounce since May 19, as the U.S. dollar index continued to rebound. U.S. President Biden met with Fed Chairman Powell, emphasizing respect for the Fed's decision-making independence, and hinted support for its efforts to control inflation.


At GMT+8 20:03, spot gold fell 0.45% to US$1829.02 per ounce; the main COMEX gold futures contract fell 0.93% to US$1831.1 per ounce; the US dollar index rose 0.28% to 102.059.


Biden respects Fed independence


U.S. President Joe Biden met with Federal Reserve Chairman Jerome Powell on Tuesday (May 31) to discuss the worst inflation the U.S. is experiencing in decades. Biden pledged to respect the Fed's decision-making independence to address inflation as it sees fit.

Diess, director of the White House National Economic Council, said after the meeting that the talks were very constructive. "The president emphasized to Chairman Powell at the meeting what he has been emphasizing, including today, that he respects the independence of the Federal Reserve."

It was the first meeting between the two since Powell was confirmed for re-election by the Senate earlier this month, when higher prices for gasoline, food and consumer goods had pushed inflation to a more than 40-year high. That could mean a tough midterm election season for Biden and his ruling Democrats, who are trying to maintain control of the Senate and House of Representatives.

Yellen: Misjudging the situation last year
U.S. Treasury Secretary Yellen said on Tuesday that she had been wrong about the path of inflation in the past, but said curbing price increases was a top priority for President Biden, and he supported the Fed in making it happen action taken.

In an interview with CNN, Yellen said: "As I mentioned, the economy has taken a huge and unexpected shock, driving up energy and food prices, supply bottlenecks have severely impacted our economy, I It wasn't fully understood at the time."

Yellen said that to complement the Fed's efforts, the Biden administration is taking action to try to reduce the cost of prescription drugs and health care, and push proposals in Congress to promote the use of renewable energy.

Gold prices are likely to fall further and the Fed may have no choice but to stick to a hawkish policy stance, according to strategists at TD Securities. Therefore, as real interest rates rise, speculative money is likely to reduce long positions in gold, which should push prices lower.

Fed doesn't believe inflation will ease on its own


The U.S. economy posted its strongest growth in nearly four years in 2021 after the government pumped trillions of dollars into the economy and the Federal Reserve kept borrowing costs near zero. Those practices helped lower the unemployment rate from a pandemic-era high of 15% to a 52-year low of 3.6%, boosting wages. But it also spurred consumer spending, sending prices soaring.

Fed officials expect inflation to moderate on its own as businesses grapple with supply chains complicated by the pandemic and consumers shift spending toward services. But Powell also made it clear that the Fed no longer counts on that and will raise interest rates to the highest level as needed.

Powell sees high inflation as a major economic risk to the country and has made reining it a top priority for the Fed during his second term, even as the process threatens to push up unemployment and cause pain for households and businesses.

The Fed has already raised interest rates by 0.75 percentage points this year. Most Fed policymakers said they expected to keep raising rates until around 2.5% by the end of the year, with further increases if needed. The Fed will continue May policy at its June and July meetings - raising rates by 0.5 percentage points each.

ING economists believe that higher interest rates should set the stage for renewed dollar strength. The performance of U.S. economic data will also support the idea of the Fed continuing to raise interest rates and provide a long-term bullish case for the dollar.

It 's not time to relax
U.S. consumer price growth slowed in April as gasoline prices retreated from record highs, a sign that inflation may have peaked, though it could persist for a while and leave the Fed to hit the brakes cooling needs.

Powell said earlier this month that while there are some encouraging signs that upward pressure on prices may be peaking, the current environment "is not the time for an extremely nuanced reading of inflation" and Fed officials will continue to tighten policy , until inflation falls in a "convincing way".

Yellen also said that the shock is still ongoing and that inflation is the number one concern for President Biden. While the recent drop in core inflation data is encouraging, she noted that oil prices remain high and Europe is working on a plan to ban imports of Russian oil. "We cannot rule out a further shock to the economy."

The deteriorating economic outlook provided some support for safe-haven gold. Investors remain concerned that the central bank's efforts to curb inflation by raising interest rates could hurt economic growth. Gold, often seen as a hedge against inflation risks, may benefit further from worries that disruptions to global supply chains will push consumer prices further. Therefore, traders who are aggressively bearish need to be cautious before preparing for further depreciation in gold.

Spot gold looks at $1820


On the daily chart, the price of gold started a downward iii wave from $1,870, and the bottom support looked at the 23.6% target of $1,820. Wave iii is a sub-wave of the descending (c) wave that started at $1998. On the hourly chart, the price of gold started a downward ((3)) wave from $1,864, and the bottom support looked at the 138.2% target of $1,824. Wave ((3)) is a sub-wave of wave iii.
Previous
Next

Bonus rebate to help investors grow in the trading world!

Need Assistance?

7×24 H

Download the APP for Free