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Market News The price of gold fell back to the US$1,840 line due to the epidemic, but this week we need to be wary of the resumption of inflation trading
The price of gold fell back to the US$1,840 line due to the epidemic, but this week we need to be wary of the resumption of inflation trading
During the European session on November 22, the spot gold price maintained a trend of volatility and decline. During the period, the price of gold hit the lowest $1837 and fell below the $1840 mark. Since last Friday, the price of gold has fallen sharply, mainly due to the rising epidemic in Europe and the United States, which has led to fears of blockade. Investors dumped fixed assets, including gold prices, in exchange for more liquid U.S. dollars, putting short-term pressure on gold prices.
2021-11-22
7994
During the European session on Monday (November 22), the spot gold price continued to fluctuate and fall back. During the period, the price of gold hit the lowest $1837 and fell below the $1840 mark. Since last Friday, the price of gold has fallen sharply, mainly due to the rising epidemic in Europe and the United States, which has led to fears of blockade. Investors dumped fixed assets, including gold prices, in exchange for more liquid U.S. dollars, putting short-term pressure on gold prices.
However, investors still need to be wary of the restart of inflation trading this week, which is good for gold prices. Consumption soared during the Thanksgiving holiday in the United States this week, and this has increased the pressure on inflation to rise further. At the same time, investors this week are also concerned about the nomination of the next chairman of the Fed. If the director Brainard is elected unexpectedly, it may increase the Fed's easing expectations. US President Biden will deliver a public speech on Tuesday. In addition to responding to the recent increase in inflation, he may also nominate the candidate for the chairman of the Federal Reserve.
With the aggravation of the latest round of the new crown epidemic, some European countries have re-entered the lockdown period. The aggravation of the epidemic has led to an increase in demand for more liquid safe-haven dollars, which is detrimental to the price of gold.
In the United States, as the United States is about to enter the Thanksgiving holiday, the number of new cases of new crowns is increasing rapidly across the United States. Some experts believe that the United States will definitely usher in another peak of the epidemic and urge the public to be cautious when gathering with others.
According to reports, data shows that the average daily increase in the number of new crown diagnoses in the United States in the seven days is close to 95,000, an increase of 33% from two weeks ago. Regions such as the Midwest, New England, and the Southwest are facing a surge in confirmed cases, with an average of 48,000 hospitalizations and 1,100 deaths every day.
As millions of Americans are still unvaccinated and the number of new cases is increasing, experts urge the public, especially those who have not been vaccinated, partially vaccinated or susceptible, to be cautious when gathering with others.
De Sousa, an epidemiologist at the Johns Hopkins University School of Public Health, said that as the United States is about to enter the holiday season, the infection rate of the new crown virus is very high, and we will definitely usher in the next peak of the epidemic. Weitz, a professor of biological sciences at the Georgia Institute of Technology, said that there are still too many Americans who have not been vaccinated, which will lead to serious consequences for the increase in the spread of the virus.
Experts also said that large gatherings should not be held excessively during the holidays, and gatherings still need to take preventive measures to reduce possible transmission, including allowing participants to perform new crown nucleic acid tests, holding activities outdoors as much as possible and increasing ventilation, and so on.
In Europe, Europe has recently become the "epicenter" of the global new crown epidemic. Germany, the United Kingdom and other countries have a high number of new confirmed cases of new crowns in a single day; Austria has "closed the city" on the 22nd, becoming the first country in Western Europe to "close the city" again nationwide; some of the Netherlands and Belgium protests against epidemic prevention measures evolve To increase the difficulty of epidemic prevention and control for riots.
According to data released by the Robert Koch Institute, a German disease control agency, on the 21st, the 7-day infection rate in Germany reached a record high, with 372.7 new confirmed cases per 100,000 people, a significant increase from the 289 cases a week ago.
The UK reported 4,004 new confirmed cases on the 21st, and a total of 287,205 confirmed cases in the last 7 days, an increase of 9.4% over the previous week. Austria has "closed the city" nationwide starting on the 22nd and is not allowed to go out except to go to work, purchase daily necessities and sports. Most shops, theaters, barber shops and Christmas markets are closed; restaurants and cafes prohibit dine-in meals; schools are not closed, but the government recommends that students attend classes at home.
Austria reported on the 21st that there were approximately 14,000 new confirmed cases in a single day, and the seven-day infection rate rose to 1,085 per 100,000 people. 528 new crown-infected patients are receiving intensive care, which is close to the peak of severe patients during the previous wave of epidemics.
Austrian Health Minister Wolfgang Mikstein said on the evening of the 21st that a relatively strict “cities lockdown” is currently the only option to curb the increase in new infections. Austria implemented epidemic prevention measures on unvaccinated people last week, but failed to effectively contain the spread of the epidemic, and the government decided to "close the city."
Chart: 4-hour chart trend of gold price
Although Biden's massive social expenditure and tax reform bill was passed in the House of Representatives on November 19, local time, the fate of the bill in the Senate is still uncertain.
After months of controversy within the party, the House of Representatives passed the bill with a vote of 220 to 213. Among the negative votes, only Representative Jared Golden of Maine opposed the Democratic Party, while all Republicans voted against it.
In the context of the unified "opposition" of the Republican senators, for Biden, if the bill is to succeed in the Senate, he must get the Democratic core party and the two most conservative senators in the party-Joe Manchin and Kyrsten Sinema Unanimous support.
At a time when more and more Americans worry about rising consumer costs, the plan will unnecessarily increase the federal deficit. According to polls, about two-thirds of Americans disagree with the president’s handling of inflation. At the same time, about 82% of respondents said that the goods they usually buy are more expensive than before.
Regarding public concerns about inflation, Brian Deese, director of the National Economic Council of the United States, argued in an interview that if the "Rebuild Better" bill is implemented, then inflation will actually decrease. He said: All experts have studied the Better Rebuild Act and concluded that it will not increase inflation because it will reduce the cost of living of the people.
It is worth mentioning that due to the recent ineffective control of the epidemic, supply chain, and inflation, the support rate in Biden's polls has continued to decline, and the support rate has dropped to a freezing point in recent weeks.
The Congressional Budget Office, which provides cost estimates for important legislation, announced last week the results of the "Rebuild Better" bill: the bill will increase the federal deficit by $367 billion in the next ten years; at the same time, the White House proposed to strengthen the US national tax. The bureau’s tax enforcement recommendations will reduce the deficit by US$127 billion during the same period.
In response, the White House expressed opposition, believing that the Congressional Budget Office underestimated the revenue generated by the government from tax changes. According to the White House’s own calculations, the “Rebuild Better” Act and tax improvement policies are expected to reduce the federal deficit by $112.5 billion.
According to data released by the U.S. Department of the Treasury on October 22, the U.S. fiscal year 2021 has a federal deficit of $2.8 trillion, the second largest deficit in history. The peak in 2020 is $3.1 trillion.
Hedge funds’ bullish sentiment for the US dollar began to cool down. Given the Fed’s insistence that it is not in a hurry to raise interest rates, the market infers that the US dollar’s recent gains have gone too far.
According to data from the US Commodity Futures Trading Commission (CFTC), leveraged funds cut their net long US dollar positions for the third consecutive week in the week ending November 16, and the cumulative reduction in holdings during this period has exceeded a quarter.
Fed Chairman Powell said earlier this month that he will not raise interest rates until the job market improves further, even if inflation accelerates. He made the above statement on the same day the Federal Reserve announced that it would start reducing its monthly asset purchase plan by $120 billion.
Tokai Tokyo Research Institute Co. Senior interest rate and foreign exchange strategist Hideki Shibata said that we are not in an environment where short-term yields and the U.S. dollar will continue to rise, especially since the Federal Reserve has expressed its caution about raising interest rates.
With the Fed’s reduction plan, the U.S. dollar index has risen by nearly 6% from its May low. The index, which tracks the trend of the U.S. dollar against 10 major currencies, climbed last week to its highest level since September 2020, and has been rising for four consecutive weeks.
Traders are eagerly eagerly eagerly waiting for the minutes of the Fed's November meeting to be released on Wednesday, hoping to obtain further clues about the timing of the rate hike. Fed Vice Chairman Richard Clarida, Governor Christopher Waller, and St. Louis Fed President James Bullard all hinted last week that the topic of speeding up cuts may be discussed at the December policy meeting.
A breakdown of last week's data shows that the dollar's long positions have generally decreased, mainly driven by the reduction in bullish bets on the U.S. dollar against the Canadian dollar, the Australian dollar and the Swiss franc. At the same time, hedge funds have increased their long USD/GBP positions.
Analysts pointed out that the recent rising inflation in the United States has suppressed the real interest rate in the United States, and the Fed’s rate of interest rate increase does not seem to be accelerating. Therefore, gold, as an anti-inflation product, is expected to be supported in the context of rising inflation.
The well-known investment bank Goldman Sachs pointed out in its latest report that supply chain problems and labor costs in 2021 will seriously drag down output and push up costs. With the advent of the holiday shopping season at the end of the year, consumer demand will reach a seasonal peak, and the problem is expected to become more obvious.
Overall, retailers’ inventory levels are low. According to East Asian trade data, consumer electronics products are expected to be in short supply. Goldman Sachs predicts that due to insufficient supply caused by limited production and transportation of consumer electronics products, actual sales during the holidays will fall by 0.5-1.8%, and nominal sales will fall by 0.3-0.7%.
Goldman Sachs pointed out that the simultaneous effects of increased seasonal demand and insufficient supply will increase core PCE by 0.1-0.25 percentage points, and the annualized growth rate of US GDP in the fourth quarter will decrease by 0.3-1.0 percentage points.
Demand for consumer goods has risen sharply during the epidemic, while demand for services is relatively low. Despite the reopening of the service industry, Goldman Sachs expects that demand for several consumer products will continue to be active in recent times.
At the beginning of last year, factories were shut down on a large scale, and at the same time strong demand, retailers' inventories fell sharply. Although the return to normal at the end of 2020, the inventory of consumer discretionary goods is still far below the current level of demand. If the demand for consumer goods exceeds the total amount of production and imports, the shortage of goods during the holidays will become more serious.
Goldman Sachs compared the actual demand levels of non-automotive consumer goods with their corresponding import levels. With sufficient US ports and truck capacity, non-electronic consumer goods can generally meet holiday demand, while electronic consumer goods may be in short supply.
Goldman Sachs predicts that during the holiday period, the gap in demand for consumer electronics will further expand to 8%, and consumer demand is expected to increase by 21% year-on-year. This will lead to a 0.5% drop in overall consumer spending. At the same time, the price of consumer electronics will rise. According to historical data, the demand for consumer electronics will increase in elasticity and will be more sensitive to price changes. Goldman Sachs predicts that consumer electronics prices will rise by 4%, leading to a 0.25% increase in core product PCE prices in November and December, and a 0.06% increase in overall nuclear PCE prices.
One point that cannot be ignored is the impact of transportation and port issues on commodity supply. With the increase of shipping time, people's worries about port congestion and insufficient cargo capacity have intensified. The Goldman Sachs report shows that the shipping time from China to the United States has increased by 46% year-on-year to about 23 days, which is equivalent to a quarter of the holiday shipping season.
Since West Coast seaborne trade accounts for 17.5% of the total US imports, unless shipping time is accelerated, holiday commodity imports will fall by 4.4% compared to foreign exports. Only less than one-third of consumer goods can arrive during the holidays. Shipping delays may reduce the supply of consumer goods during the holiday shopping season by 1.4%.
US President Biden will deliver a speech on the economy and the fight against inflation on Tuesday local time.
The White House previously stated that Biden will announce his nominee for the chairman of the Federal Reserve before the Thanksgiving holiday on November 25. Biden will choose between the current Fed Chairman Powell and Fed Governor Brainard. In terms of monetary policy, Brainard is considered to be more dovish than Powell; in addition, Brainard is a hardliner who has never wavered and is unwilling to compromise in financial regulation, and is more interested in the field of climate change.
On the other hand, high inflation has become a political burden for Biden. U.S. gasoline prices have reached a seven-year high this month. While accusing OPEC+ of causing oil prices to soar, the Biden administration said it is evaluating all tools to curb energy prices, including the release of the U.S. Strategic Petroleum Reserve. After the appeal for OPEC+ to increase production was rejected, Biden has sought South Korea, Japan and other oil-consuming countries to release oil reserves to reduce oil prices. Japan said last Saturday that it is considering releasing reserves.
A senior Democrat in the U.S. Senate hinted that the uncertainty of the Fed’s head is limiting the United States’ actions to curb inflation and urged President Joe Biden to nominate Fed Chairman Jerome Powell for re-election.
Senator Jon Tester of Montana said that I think there are some issues surrounding inflation. As long as he is not confirmed, he can do nothing. Powell needs to be appointed and we need to confirm his nomination. I think that if he is appointed by the president, he will be confirmed with a great advantage. Then he can serve as chairman of the Federal Reserve and do his job well as he did in the past.
It was also reported that Biden had interviews with Powell and Fed Governor Lael Brainard about the Fed chairmanship, and he is expected to make a decision before Thanksgiving. CBS’s survey results released on Sunday showed that 67% of respondents disagreed with Biden’s handling of inflation, and 84% blamed the accelerated price increase on supply and manufacturing bottlenecks related to the epidemic.
White House economic aide Brian Deese said that Biden “spent a lot of time” with the Fed, and mentioned that the central bank has multiple positions to fill, but said that these positions will be left for Biden to announce.
GMT+8 20:03, the spot gold price was reported at US$1840.98 per ounce
However, investors still need to be wary of the restart of inflation trading this week, which is good for gold prices. Consumption soared during the Thanksgiving holiday in the United States this week, and this has increased the pressure on inflation to rise further. At the same time, investors this week are also concerned about the nomination of the next chairman of the Fed. If the director Brainard is elected unexpectedly, it may increase the Fed's easing expectations. US President Biden will deliver a public speech on Tuesday. In addition to responding to the recent increase in inflation, he may also nominate the candidate for the chairman of the Federal Reserve.
Concerns about a new round of epidemic problems in Europe and the United States have increased, which is expected to push up the safe-haven dollar, which is not conducive to the price of gold
With the aggravation of the latest round of the new crown epidemic, some European countries have re-entered the lockdown period. The aggravation of the epidemic has led to an increase in demand for more liquid safe-haven dollars, which is detrimental to the price of gold.
In the United States, as the United States is about to enter the Thanksgiving holiday, the number of new cases of new crowns is increasing rapidly across the United States. Some experts believe that the United States will definitely usher in another peak of the epidemic and urge the public to be cautious when gathering with others.
According to reports, data shows that the average daily increase in the number of new crown diagnoses in the United States in the seven days is close to 95,000, an increase of 33% from two weeks ago. Regions such as the Midwest, New England, and the Southwest are facing a surge in confirmed cases, with an average of 48,000 hospitalizations and 1,100 deaths every day.
As millions of Americans are still unvaccinated and the number of new cases is increasing, experts urge the public, especially those who have not been vaccinated, partially vaccinated or susceptible, to be cautious when gathering with others.
De Sousa, an epidemiologist at the Johns Hopkins University School of Public Health, said that as the United States is about to enter the holiday season, the infection rate of the new crown virus is very high, and we will definitely usher in the next peak of the epidemic. Weitz, a professor of biological sciences at the Georgia Institute of Technology, said that there are still too many Americans who have not been vaccinated, which will lead to serious consequences for the increase in the spread of the virus.
Experts also said that large gatherings should not be held excessively during the holidays, and gatherings still need to take preventive measures to reduce possible transmission, including allowing participants to perform new crown nucleic acid tests, holding activities outdoors as much as possible and increasing ventilation, and so on.
In Europe, Europe has recently become the "epicenter" of the global new crown epidemic. Germany, the United Kingdom and other countries have a high number of new confirmed cases of new crowns in a single day; Austria has "closed the city" on the 22nd, becoming the first country in Western Europe to "close the city" again nationwide; some of the Netherlands and Belgium protests against epidemic prevention measures evolve To increase the difficulty of epidemic prevention and control for riots.
According to data released by the Robert Koch Institute, a German disease control agency, on the 21st, the 7-day infection rate in Germany reached a record high, with 372.7 new confirmed cases per 100,000 people, a significant increase from the 289 cases a week ago.
The UK reported 4,004 new confirmed cases on the 21st, and a total of 287,205 confirmed cases in the last 7 days, an increase of 9.4% over the previous week. Austria has "closed the city" nationwide starting on the 22nd and is not allowed to go out except to go to work, purchase daily necessities and sports. Most shops, theaters, barber shops and Christmas markets are closed; restaurants and cafes prohibit dine-in meals; schools are not closed, but the government recommends that students attend classes at home.
Austria reported on the 21st that there were approximately 14,000 new confirmed cases in a single day, and the seven-day infection rate rose to 1,085 per 100,000 people. 528 new crown-infected patients are receiving intensive care, which is close to the peak of severe patients during the previous wave of epidemics.
Austrian Health Minister Wolfgang Mikstein said on the evening of the 21st that a relatively strict “cities lockdown” is currently the only option to curb the increase in new infections. Austria implemented epidemic prevention measures on unvaccinated people last week, but failed to effectively contain the spread of the epidemic, and the government decided to "close the city."
Chart: 4-hour chart trend of gold price
Biden's 2 trillion infrastructure stimulus may be difficult to break through the Senate, which is not conducive to the price of gold
Although Biden's massive social expenditure and tax reform bill was passed in the House of Representatives on November 19, local time, the fate of the bill in the Senate is still uncertain.
After months of controversy within the party, the House of Representatives passed the bill with a vote of 220 to 213. Among the negative votes, only Representative Jared Golden of Maine opposed the Democratic Party, while all Republicans voted against it.
In the context of the unified "opposition" of the Republican senators, for Biden, if the bill is to succeed in the Senate, he must get the Democratic core party and the two most conservative senators in the party-Joe Manchin and Kyrsten Sinema Unanimous support.
At a time when more and more Americans worry about rising consumer costs, the plan will unnecessarily increase the federal deficit. According to polls, about two-thirds of Americans disagree with the president’s handling of inflation. At the same time, about 82% of respondents said that the goods they usually buy are more expensive than before.
Regarding public concerns about inflation, Brian Deese, director of the National Economic Council of the United States, argued in an interview that if the "Rebuild Better" bill is implemented, then inflation will actually decrease. He said: All experts have studied the Better Rebuild Act and concluded that it will not increase inflation because it will reduce the cost of living of the people.
It is worth mentioning that due to the recent ineffective control of the epidemic, supply chain, and inflation, the support rate in Biden's polls has continued to decline, and the support rate has dropped to a freezing point in recent weeks.
The Congressional Budget Office, which provides cost estimates for important legislation, announced last week the results of the "Rebuild Better" bill: the bill will increase the federal deficit by $367 billion in the next ten years; at the same time, the White House proposed to strengthen the US national tax. The bureau’s tax enforcement recommendations will reduce the deficit by US$127 billion during the same period.
In response, the White House expressed opposition, believing that the Congressional Budget Office underestimated the revenue generated by the government from tax changes. According to the White House’s own calculations, the “Rebuild Better” Act and tax improvement policies are expected to reduce the federal deficit by $112.5 billion.
According to data released by the U.S. Department of the Treasury on October 22, the U.S. fiscal year 2021 has a federal deficit of $2.8 trillion, the second largest deficit in history. The peak in 2020 is $3.1 trillion.
Hedge funds' bullish sentiment on the dollar cools down, or limits the fall in gold prices
Hedge funds’ bullish sentiment for the US dollar began to cool down. Given the Fed’s insistence that it is not in a hurry to raise interest rates, the market infers that the US dollar’s recent gains have gone too far.
According to data from the US Commodity Futures Trading Commission (CFTC), leveraged funds cut their net long US dollar positions for the third consecutive week in the week ending November 16, and the cumulative reduction in holdings during this period has exceeded a quarter.
Fed Chairman Powell said earlier this month that he will not raise interest rates until the job market improves further, even if inflation accelerates. He made the above statement on the same day the Federal Reserve announced that it would start reducing its monthly asset purchase plan by $120 billion.
Tokai Tokyo Research Institute Co. Senior interest rate and foreign exchange strategist Hideki Shibata said that we are not in an environment where short-term yields and the U.S. dollar will continue to rise, especially since the Federal Reserve has expressed its caution about raising interest rates.
With the Fed’s reduction plan, the U.S. dollar index has risen by nearly 6% from its May low. The index, which tracks the trend of the U.S. dollar against 10 major currencies, climbed last week to its highest level since September 2020, and has been rising for four consecutive weeks.
Traders are eagerly eagerly eagerly waiting for the minutes of the Fed's November meeting to be released on Wednesday, hoping to obtain further clues about the timing of the rate hike. Fed Vice Chairman Richard Clarida, Governor Christopher Waller, and St. Louis Fed President James Bullard all hinted last week that the topic of speeding up cuts may be discussed at the December policy meeting.
A breakdown of last week's data shows that the dollar's long positions have generally decreased, mainly driven by the reduction in bullish bets on the U.S. dollar against the Canadian dollar, the Australian dollar and the Swiss franc. At the same time, hedge funds have increased their long USD/GBP positions.
This week, the inflation problem in the US holiday shopping season is more serious, and the safe-haven gold price is expected to be supported
Analysts pointed out that the recent rising inflation in the United States has suppressed the real interest rate in the United States, and the Fed’s rate of interest rate increase does not seem to be accelerating. Therefore, gold, as an anti-inflation product, is expected to be supported in the context of rising inflation.
The well-known investment bank Goldman Sachs pointed out in its latest report that supply chain problems and labor costs in 2021 will seriously drag down output and push up costs. With the advent of the holiday shopping season at the end of the year, consumer demand will reach a seasonal peak, and the problem is expected to become more obvious.
Overall, retailers’ inventory levels are low. According to East Asian trade data, consumer electronics products are expected to be in short supply. Goldman Sachs predicts that due to insufficient supply caused by limited production and transportation of consumer electronics products, actual sales during the holidays will fall by 0.5-1.8%, and nominal sales will fall by 0.3-0.7%.
Goldman Sachs pointed out that the simultaneous effects of increased seasonal demand and insufficient supply will increase core PCE by 0.1-0.25 percentage points, and the annualized growth rate of US GDP in the fourth quarter will decrease by 0.3-1.0 percentage points.
Demand for consumer goods has risen sharply during the epidemic, while demand for services is relatively low. Despite the reopening of the service industry, Goldman Sachs expects that demand for several consumer products will continue to be active in recent times.
At the beginning of last year, factories were shut down on a large scale, and at the same time strong demand, retailers' inventories fell sharply. Although the return to normal at the end of 2020, the inventory of consumer discretionary goods is still far below the current level of demand. If the demand for consumer goods exceeds the total amount of production and imports, the shortage of goods during the holidays will become more serious.
Goldman Sachs compared the actual demand levels of non-automotive consumer goods with their corresponding import levels. With sufficient US ports and truck capacity, non-electronic consumer goods can generally meet holiday demand, while electronic consumer goods may be in short supply.
Goldman Sachs predicts that during the holiday period, the gap in demand for consumer electronics will further expand to 8%, and consumer demand is expected to increase by 21% year-on-year. This will lead to a 0.5% drop in overall consumer spending. At the same time, the price of consumer electronics will rise. According to historical data, the demand for consumer electronics will increase in elasticity and will be more sensitive to price changes. Goldman Sachs predicts that consumer electronics prices will rise by 4%, leading to a 0.25% increase in core product PCE prices in November and December, and a 0.06% increase in overall nuclear PCE prices.
One point that cannot be ignored is the impact of transportation and port issues on commodity supply. With the increase of shipping time, people's worries about port congestion and insufficient cargo capacity have intensified. The Goldman Sachs report shows that the shipping time from China to the United States has increased by 46% year-on-year to about 23 days, which is equivalent to a quarter of the holiday shipping season.
Since West Coast seaborne trade accounts for 17.5% of the total US imports, unless shipping time is accelerated, holiday commodity imports will fall by 4.4% compared to foreign exports. Only less than one-third of consumer goods can arrive during the holidays. Shipping delays may reduce the supply of consumer goods during the holiday shopping season by 1.4%.
Biden will speak on the economy and inflation on Tuesday, and the market is concerned about the candidate for the new chairman of the Federal Reserve
US President Biden will deliver a speech on the economy and the fight against inflation on Tuesday local time.
The White House previously stated that Biden will announce his nominee for the chairman of the Federal Reserve before the Thanksgiving holiday on November 25. Biden will choose between the current Fed Chairman Powell and Fed Governor Brainard. In terms of monetary policy, Brainard is considered to be more dovish than Powell; in addition, Brainard is a hardliner who has never wavered and is unwilling to compromise in financial regulation, and is more interested in the field of climate change.
On the other hand, high inflation has become a political burden for Biden. U.S. gasoline prices have reached a seven-year high this month. While accusing OPEC+ of causing oil prices to soar, the Biden administration said it is evaluating all tools to curb energy prices, including the release of the U.S. Strategic Petroleum Reserve. After the appeal for OPEC+ to increase production was rejected, Biden has sought South Korea, Japan and other oil-consuming countries to release oil reserves to reduce oil prices. Japan said last Saturday that it is considering releasing reserves.
A senior Democrat in the U.S. Senate hinted that the uncertainty of the Fed’s head is limiting the United States’ actions to curb inflation and urged President Joe Biden to nominate Fed Chairman Jerome Powell for re-election.
Senator Jon Tester of Montana said that I think there are some issues surrounding inflation. As long as he is not confirmed, he can do nothing. Powell needs to be appointed and we need to confirm his nomination. I think that if he is appointed by the president, he will be confirmed with a great advantage. Then he can serve as chairman of the Federal Reserve and do his job well as he did in the past.
It was also reported that Biden had interviews with Powell and Fed Governor Lael Brainard about the Fed chairmanship, and he is expected to make a decision before Thanksgiving. CBS’s survey results released on Sunday showed that 67% of respondents disagreed with Biden’s handling of inflation, and 84% blamed the accelerated price increase on supply and manufacturing bottlenecks related to the epidemic.
White House economic aide Brian Deese said that Biden “spent a lot of time” with the Fed, and mentioned that the central bank has multiple positions to fill, but said that these positions will be left for Biden to announce.
GMT+8 20:03, the spot gold price was reported at US$1840.98 per ounce
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