© Reuters.
Investing.com – Metals prices surged during these trading moments Tuesday, with gold and silver extending gains, coinciding with expanding US downsides.
Safe-haven asset, gold, started trading higher on Tuesday, coinciding with the decline in the dollar index, amid growing concerns of plunging into a recession, which is closer than ever.
XAU/USD – spot contracts for gold, a US dollar for the yellow metal, surged during these trading moments today, Tuesday, within a 0.35% range, or the $6 equivalent , to reach levels close to $1794 an ounce.
gold glitter
Futures contracts for the yellow metal rose during these trading moments on Tuesday by more than 1.2%, or the equivalent of $22 an ounce, to reach levels near $1819 an ounce.
At the same time, spot gold contract prices rose more than 1.15% to $1809 an ounce levels, an increase of about $21 during these trading moments today, Tuesday.
Metal spree
Coinciding with the rise in gold, it jumped within the range of 4%, or the equivalent of $1, to reach levels of $24.1, compared with levels of $23.05 in early trading .
While gold and silver moved higher, the spot price of platinum rose 2% to $1003.8 and the price rose 1.8% to $1698.
dollar now
On the other hand, from the sharp gains in metals, the main dollar index fell more than 0.8%, falling to levels below 104 points, having fallen close to its lowest level in 6 months, falling to levels by 103.9 points.
On the other hand, bonds extended their gains during trading on Tuesday, taking the 10-year yield to 3.65%, up 0.17 points.
what happened?
Today the Bank of Japan decided to change the yield curve control settings in order not to terminate the yield curve control program or to change the policy
The Monetary Policy Committee of the Bank of Japan decided on Tuesday morning to keep the interest rate unchanged at -0.1% and Bank of Japan Governor Harukiko Kuroda confirmed that the Bank of Japan will not hesitate to further ease monetary policy if necessary.
fears of recession
Markets are currently fearful of recession warnings that have resurfaced following the US Federal Reserve’s announcement that the currency market is still tight, however, bank officials confirmed that the tightening process is still ongoing.
Morgan Stanley (NYSE:) strategist Michael Wilson says declining corporate profits in the US may rival the era of the financial crisis since 2008.
Michael Wilson, a strategist at Morgan Stanley, believes US stocks are heading for their worst year since the global financial crisis and corporate profits are about to meet the same fate.
chance for gold
“It is trying to recoup losses, despite the Fed’s hawkish stance, as the dollar’s bullish reaction and yields are even more calculated,” said VIG strategist Yip Jun Rong.
Federal Reserve policymakers may need to raise US borrowing costs past a peak of 5.1% and keep them there perhaps through 2024 to counter the high inflation plaguing the economy.
“Further pullout by Fed officials could mean a fight for gold,” Yip added.
A study by World Economics showed that business confidence in China hit its lowest level since January 2013, reflecting the impact of rising Corona cases on economic activity in the world’s largest bullion consumer.
