©Reuters.
Investing.com – The price moved higher in early trading Wednesday as all eyes turned to Powell’s speech at the Brookings Institution for fresh clues about the Fed’s plans to hike interest rates in the coming period.
At the same time, investors are awaiting the US jobs report on Wednesday, hoping to find new indications on the next move by Federal Reserve officials.
Stay tuned for Powell’s speech
“Powell’s speech is the main focus of the market today for everyone looking for new signals on the next move,” says ED&F analyst Edward Meir.
New data indicated that only 9 of the 12 Fed members agreed to raise interest rates by 75 basis points during November, meaning it’s not a complete consensus for all members.
U.S. consumer confidence data was released on Tuesday, which came in against expectations, reinforcing the Fed’s view that the economy is still far from falling into the recession trap, while igniting expectations of a sharp increase in interest rates at the next meeting.
Data from the CB Consumer Confidence Index (November) revealed a record 102.2 points against expectations for record levels of 100 points, while the previous October reading had registered 102.2 points.
The latest data comes after statements by US Reserve Bank bosses and officials regarding the continuation of the Fed’s aggressive policy for the bank to meet its inflation targets.
gold today
Spot contracts for gold rose by US dollars during these trading moments today, Wednesday, hours before Jerome Powell’s speech, and after surprise data from the US Federal Reserve on member consensus on recent rate hike .
E XAU/USD – Spot gold contracts edged to levels near $1,756 an ounce, up about $7, or 0.4%, during these trading moments on Wednesday.
At the same time, futures contracts for the yellow metal have soared since trading Wednesday within the $5 range, reaching levels as low as $1753 an ounce, an increase of about 0.3%.
dollar today
On the other hand, desperation appears to be seeping more into the dollar, which is hovering near its lowest level in a month after hitting a more than 20-year high when it approached a high of 115 points.
The main decline against a basket of currencies today, Wednesday, within the limits of 0.25%, up to levels of 106.5 points during these trading moments today, Wednesday.
On the other hand, US bonds continued to post dips in yields, with the 10-year yield falling in the 0.025 points range at 3.72% during Wednesday’s trading.
Concerns for China
Coinciding with the federal anticipation, from the other side of the world comes the anticipation of the tense situation in China, where Chinese police were in place in Beijing and Shanghai to prevent further protests against the Corona restrictions.
Michael Langford, director of business consultancy firm AirGuide, said protests in China, the world’s largest gold consumer, and the resulting strong security presence will affect spending and industrial activity in the coming month, affecting all metals.
