Gold Falls Towards $1700… The Dollar Is Confused And Bonds At 15-Year Top By

Gold Falls Towards $1700… The Dollar Is Confused And Bonds At 15-Year Top By
Gold Falls Towards $1700… The Dollar Is Confused And Bonds At 15-Year Top By

© Reuters – Safe haven gold continued to fall, heading towards $1,700 levels, despite the faltering gains of the dollar, which is still hovering near the 109-point levels.

On the other hand, US bonds did not miss the opportunity to fluctuate risk appetite and traders’ aversion to risky assets to record highs, while the inversion of the yield curve continues to raise fears of a recession.

stock volatility

The U.S. stock market will remain volatile, as investors continue to monitor a mixed batch of economic data and try to anticipate the trajectory of inflation, UBS investment unit official said.

“We have a lot of disturbing data like core and core CPI, monthly jobs data,” said Mark Heffel.

While the US CPI showed a slowdown of 8.5% in July on a yearly basis, the labor market was stronger than expected with 528,000 jobs added compared to expectations of 250k jobs added.

Heffel said that fluctuations in the stock market will continue until the direction of inflation is clear in the period ahead, amid interest in a major question about the size of inflation related to the supply chain crisis.

The US stock indices have been subjected to continuous losses since last Friday, after statements by Federal Reserve Chairman Ndon Jackson Hole indicating the continuation of raising interest rates until inflation subsides significantly.

Record losses

And it fell at the end of trading on Wednesday, to continue the decline for the fifth month in a row, amid expectations that the US interest rate will continue to rise, which supports the rise of the dollar.

Gold fell during August trading by 3.1%, or the equivalent of $55.6, while yesterday it fell by 0.8%, or the equivalent of $10.10, to reach $1710.70 an ounce.

interest concerns

Cleveland Federal Reserve President Loretta Mester said Wednesday that she sees interest rates rising significantly before the central bank can ease its fight against inflation.

The Cleveland Fed chair sees the benchmark interest rate above 4% and there are no cuts at least until 2023.

Meester, this year’s voting member of the Federal Open Market Committee that sets rates, said she sees rates rising above 4% in the coming months.

New York Fed President John Williams said the fight against high inflation is likely to require raising the central bank’s short-term interest rate above 3.5% and keeping it at that level over the next year.

gold now

And gold is declining during these moments of trading today, Thursday, within the limits of 0.4%, or the equivalent of $ 10 per ounce, and the spot contracts for gold in the US dollar recorded levels of 1702 dollars.

On the other hand, gold futures contracts fell during trading today, Thursday, in the range of 0.65%, or the equivalent of $11 an ounce, down to $1715 levels, as gold is heading to its lowest level in 6 weeks.

dollar now

On the other hand, despite the rise in the main during today’s trading, it is still unable to confirm exceeding the 109-point levels and heading to the 110 levels despite the massive stimulus from the Fed.

Today, the US dollar index rose against a basket of major currencies within 0.2% at 108.9 points, while it fluctuates between 109.13 points and 108.7 points.

Despite the decline in the euro, the expectations of the European Central’s increase in interest rates rose in the euro again to the highest levels of parity, as it hovered near the levels of 1.004 dollars.

bond now

On the other hand, the yield on the 10-year US Treasury bond jumped to its highest level in 4 years since 2018, reaching 3.206 percent, after it jumped earlier today to 3.22%.

While the yield on the shorter-dated two-year treasury bonds exceeded the 15-year high, as the two-year yield rose to 3.52%, the highest since 2007.

The article is in Arabic

Tags: Gold Falls #1700.. Dollar Confused Bonds #15Year Top Investing .com

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