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Market News The international gold price is stable, the US index continues to fall, and the FED hawks are too careful

The international gold price is stable, the US index continues to fall, and the FED hawks are too careful

International gold prices held steady on Tuesday (May 17) as the U.S. dollar index continued to fall, supporting demand for U.S. dollar-denominated gold, and investors became increasingly concerned that the Fed's accelerated rate hikes could lead to a hard landing for the economy. In a generally safe-haven environment favorable for safe-haven precious metals, at least temporarily, the decline in gold prices has temporarily ended. Federal Reserve Chairman Jerome Powell will speak later in the day.

2022-05-17
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International gold prices held steady on Tuesday (May 17) as the U.S. dollar index continued to fall, supporting demand for U.S. dollar-denominated gold, and investors became increasingly concerned that the Fed's accelerated rate hikes could lead to a hard landing for the economy. In a generally safe-haven environment favorable for safe-haven precious metals, at least temporarily, the decline in gold prices has temporarily ended.

At GMT+8 15:26, spot gold rose 0.02% to US$1,824.04 per ounce; the main COMEX gold futures contract rose 0.49% to US$1,822.9 per ounce; the US dollar index fell 0.26% to 103.96.

The U.S. dollar index fell last week after hitting a new high of 105.01 since mid-December 2002, and fell for three consecutive trading days. Gold rebounded and closed higher after hitting a low of 1786.70 since January 31 overnight, as investors expressed concern that the Fed's accelerated rate hike may lead to Fears of a hard economic landing have grown.

The Fed under Powell has come under fire for failing to respond to inflation. Meanwhile, U.S. President Joe Biden has also been blamed by big business owners for persistent inflation and fiscal missteps.

Former Fed Chairman Ben Bernanke said in an interview on Monday (May 16): "The question is why did they delay the response? I think in retrospect, yes, it was a mistake, and I think they agreed that it was a mistake. ."

In a tweet, Amazon founder Jeff Bezos criticized the White House's tactics, saying the $1.9 trillion "relief package" signed into law last March had contributed to soaring inflation. He also pointed to the significant impact of the sharp rise in prices on poor households.

Market participants are now looking ahead to U.S. industrial data for April, due later in the day, and Federal Reserve Chairman Jerome Powell is also due to speak. This will provide some boost to gold prices. Traders will further take cues from broader market risk sentiment to seize near-term opportunities surrounding the metal.
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