Market movements are fast and full of profits that we should take advantage of, especially with the abundance of economic news. Wait for us every day on accuindex. With weekly analysis, we present to you the overview and comprehensive of the US stock markets. Gold prices rose on Monday as the dollar fell and US Treasury yields, while investors’ focus shifted to US inflation data that will be released this week and may affect the Federal Reserve’s plan. for interest rate increases.
And gold rose in spot transactions 0.82 percent to $ 1788.60 an ounce by 1730 GMT.
US gold futures rose 0.7 percent to $1,804.20.
The dollar index fell 0.3 percent, which makes the yellow metal more attractive to buyers of holders of other currencies. US Treasury yields also fell.
All eyes are now on the US CPI report due on Wednesday. Analysts polled by Reuters had expected annual inflation to fall to 8.7 percent in July from 9.1 percent the previous month.
Among other precious metals, silver increased in spot transactions 3.70 percent to $20.61 while platinum rose about one percent to $941.60. After the FOMC meeting, markets tended to pricing in less hawkishness from the Federal Reserve
But the Fed and members of the administration are getting tough again
The markets may turn out to have made a huge mistake by miscalculating
Thinking that the Fed would be nicer and nicer was probably a huge mistake by the markets. This week, a large number of Federal Reserve governors and board members were indicating that it would still need to raise rates much higher and keep them high for some time to bring inflation back to the 2% target.
This message appears to be currently making its way through the markets, with the Fed Funds futures yield being the first to respond. Over the past week, the most significant shift appears to have been related to the timing of the Fed’s first rate cut.
Last week, Fed fund futures were priced at the first rate cut in March 2023, which has now shifted to May 2023. Additionally, Fed fund futures have seen yields rise to 3.25%. Now, returns are expected to peak at 3.45%. If the Fed continues with its rate hike plans, this means that the timing of interest rate cuts will continue to move away from the intended time, and expectations for interest rates will rise.