During the trading of Tuesday, 10.5.22, gold prices fell, as investors turned towards the US dollar amid the tightening of the Fed with its monetary policy. Some Fed members talked about this tightening, and the goal of it is to control inflation, as New York City member John Williams said that the raising of interest rates will help calm inflation.
Gold is currently trading near the level of $1840 an ounce, down by 0.96%, while oil prices fell sharply and more than 3%, as Brent crude contracts fell towards the level of $102 a barrel, while West Texas Intermediate crude decreased by 3.6%, falling below $100 barrel. There has been information about easing the package of sanctions proposed by the European Union on Russian oil, in addition to the closures in some Chinese cities due to the spread of the Coronavirus, as China is one of the largest importers of oil around the world.
The US dollar has maintained its rise, and it is still trading in the bullish direction, and investors are awaiting the US inflation figures for the month of April on Wednesday, 11.5.22 at 1:30pm GMT.
It is expected that the US consumer price index rose to 8.1% in April on an annual basis.