Market News The rebound of international gold prices is weak, the dollar is higher, and gold bulls need new catalysts
The rebound of international gold prices is weak, the dollar is higher, and gold bulls need new catalysts
On Tuesday (June 7), the international gold price rebounded weakly, as investors bet that the Federal Reserve would actively tighten monetary policy, driving the dollar higher. But higher interest rates could have negative consequences for economic growth, and gold investors remain cautious. U.S. Treasury Yellen is about to go to a congressional hearing and face a series of questions from lawmakers about how the Biden administration will handle thorny economic issues.
2022-06-07
9244
On Tuesday (June 7), the international gold price rebounded weakly, as investors bet that the Federal Reserve would actively tighten monetary policy, driving the dollar higher. But higher interest rates could have negative consequences for economic growth, and gold investors remain cautious. U.S. Treasury Yellen is about to go to a congressional hearing and face a series of questions from lawmakers about how the Biden administration will handle thorny economic issues.
At GMT+8 15:21, spot gold rose 0.17% to US$1844.67/oz; the main COMEX gold futures contract rose 0.17% to US$1846.9/oz; the US dollar index rose 0.20% to 102.603, hitting a new intraday high since May 23 102.838.
Stephen Innes, managing partner at SPI Asset Management, said: "Ahead of this week's U.S. Treasury auction, higher U.S. Treasury yields spooked gold investors... The dollar is surging on the back of higher yields. We are in the middle of a global rate hike. In an environment, it’s not good for gold.”
Global central banks bought a net 19.4 tonnes of gold in April, reversing the trend of net selling in March, according to the latest data from the World Gold Council. But central bank buying should not be seen as a bullish signal for gold prices.
The Fed is on track to continue the pace of May rate hikes in June and July -- 0.5 percentage point. A solid May nonfarm payrolls report released last week boosted expectations that the Federal Reserve will continue to accelerate policy tightening. Investors awaited this weekend's U.S. May inflation report for further clues on the prospect of a rate hike by the Federal Reserve.
The Federal Reserve announced on Monday (June 6) that it will release the results of its annual stress test of the largest U.S. bank on June 23. Investors will be watching the result closely, as the test sets the performance of large bank portfolios in a recession, which in turn indicates how much capital banks will have to hold as a loss-protection buffer.
U.S. Treasury Yellen is about to go to a congressional hearing and face a series of questions from lawmakers about how the Biden administration will handle thorny economic issues. Last week, Yellen admitted she had misjudged the path of inflation last year.
JPMorgan analysts expect gold to average $1,800 an ounce in the third quarter, on expectations of a rebound in investor risk appetite and continued gains in U.S. yields. But higher interest rates could have negative consequences for economic growth, and gold investors remain cautious.
Last session, COMEX futures gold open interest fell for the second straight session and volume fell for the fourth straight day. Gold prices seem to be supported near $1840, and the decline in gold prices in the short term does not seem sustainable, with the 200-day simple moving average (around $1840) continuing to act as a strong support level.
At GMT+8 15:21, spot gold rose 0.17% to US$1844.67/oz; the main COMEX gold futures contract rose 0.17% to US$1846.9/oz; the US dollar index rose 0.20% to 102.603, hitting a new intraday high since May 23 102.838.
Stephen Innes, managing partner at SPI Asset Management, said: "Ahead of this week's U.S. Treasury auction, higher U.S. Treasury yields spooked gold investors... The dollar is surging on the back of higher yields. We are in the middle of a global rate hike. In an environment, it’s not good for gold.”
Global central banks bought a net 19.4 tonnes of gold in April, reversing the trend of net selling in March, according to the latest data from the World Gold Council. But central bank buying should not be seen as a bullish signal for gold prices.
The Fed is on track to continue the pace of May rate hikes in June and July -- 0.5 percentage point. A solid May nonfarm payrolls report released last week boosted expectations that the Federal Reserve will continue to accelerate policy tightening. Investors awaited this weekend's U.S. May inflation report for further clues on the prospect of a rate hike by the Federal Reserve.
The Federal Reserve announced on Monday (June 6) that it will release the results of its annual stress test of the largest U.S. bank on June 23. Investors will be watching the result closely, as the test sets the performance of large bank portfolios in a recession, which in turn indicates how much capital banks will have to hold as a loss-protection buffer.
U.S. Treasury Yellen is about to go to a congressional hearing and face a series of questions from lawmakers about how the Biden administration will handle thorny economic issues. Last week, Yellen admitted she had misjudged the path of inflation last year.
JPMorgan analysts expect gold to average $1,800 an ounce in the third quarter, on expectations of a rebound in investor risk appetite and continued gains in U.S. yields. But higher interest rates could have negative consequences for economic growth, and gold investors remain cautious.
Last session, COMEX futures gold open interest fell for the second straight session and volume fell for the fourth straight day. Gold prices seem to be supported near $1840, and the decline in gold prices in the short term does not seem sustainable, with the 200-day simple moving average (around $1840) continuing to act as a strong support level.
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