The future of gold rose on Wednesday, they found out how they were doing as traders watched the ever-growing Federal Reserve and monitored progress in the Russian-Ukrainian war.
"The Ukrainian war provides an escape from quality support for precious metals, but the hawkish shift in the Fed's analysis has worsened,"
Fed Chairman Jerome Powell revealed on Monday that the next inflation could be 0.5% compared to the 0.25% previously announced. On Tuesday, President St. Louis Federal James Bullard said the central bank needed to move faster in inflation, and San Francisco Fed President Mary Daly said the Fed needed to raise interest rates to a neutral level.
Meanwhile, Cleveland Fed President Loretta Mester on Tuesday said the Fed should raise the benchmark policy level by about 2.5% this year.
"The statements have led to a significant increase in Treasury bond and note yield, making it less attractive to hold non-profit instruments" such as precious metals, "said Zaner analysts.
April GC00 delivery gold, + 0.49% GCJ22, + 0.49% up $ 11.20, or 0.6%, to $ 1,932.90 ounce on Comex. The most effective contract prices are ready to be paid in full from March 17, FactSet data show. May SIK22 silver, + 0.77% increase by 32.1 cents, or 1.3%, at $ 25.225an low.
Gold declined on Tuesday as the Treasury harvest continued in another round of about three years. A higher yield can increase the cost of the opportunity to seize incomparable assets such as precious metals. On Wednesday, however, Treasury yields declined slightly.
At the time, investors were also watching the four-week war in Ukraine as Russia remained embroiled in a costly and uncertain military campaign, with countless casualties, surrounded by western sanctions that severely hurt the economy and its finances. US President Joe Biden was expected to hold a series of summits in Brussels on Thursday with NATO allies, the Group of Seven Leaders and the European Union, which may impose further sanctions on Moscow.
Ukraine is still embroiled in controversy, Russia has stepped up its bombing campaign, and the US has warned of cyber attacks, analysts say in Zaner. "A situation where it is wet enough for another wave of aircraft to go to the existing shopping mall."
Gold was able to recover from a short-term low trade limit of $ 1,915 ounces and trades close to its previous “response zone” of $ 1,930, said Walid Koudmani, XTB chief market analyst at the point. The geopolitical situation remains uncertain, any major events could re-emerge the renewed interest of safe assets that have benefited most from the panic of investors over the entire period over the past few weeks, ”he wrote. "On the other hand, even if we do see a decline, it will be important to see if the support level mentioned above will be able to hold or if the price will add to the decline in this."
In other Comex contracts, May May HGK22, + 1.27% added 1.2% to $ 4.758 a pound. April platinum PLJ22, -0.39% cut from 0.5% to $ 1,029.80 ounce and June palladium PAM22, + 2.42% traded at $ 2,536 down, up 2.4%.
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Courtesy Grizler.com
