gold futuresPrices rose on Tuesday for the first time in three sessions, as the dollar and U.S. Treasury yields fell, supporting precious metals prices as investors assessed whether the Federal Reserve’s May meeting would pause its rate hike cycle .
- New York for June deliverygold futuresPrices rose $12.70, or 0.6%, to $2,019.70 an ounce.gold futuresIt briefly fell below $2,000 on Monday, with the intraday low falling to $1,993.40 an ounce.
According to Lukman Otunuga, Market Analysis Manager at FXTM,goldDown more than 2% over the past two days, the stock is now licking the wounds of a recent sell-off.
James Bullard, president of the Federal Reserve Bank of St. Louis, said in an interview on Tuesday that recent data show that inflation remains high, and the Fed should continue to raise interest rates. Raphael Bositc, president of the Federal Reserve Bank of Atlanta, also said, The Fed will raise rates one more time, and may need to keep them high for a longer period of time after that.
Last Friday, Fed Governor Waller (Christopher Waller) also said that the Fed needs to continue raising interest rates because inflation is still too high.
An environment of rising interest rates and anti-inflation is usually not conducive to gold prices, which will increase holdingsgoldthe opportunity cost of such non-yielding assets, andgoldIt is an anti-inflation tool.
Fed officials will enter the silence period before the meeting on the 22nd, so the market pays close attention to their recent speeches, and the gold price is expected to fluctuate accordingly.
TD Securities commodity strategist Daniel Ghali said: “goldThe real concern for traders is how soon a rate cut is coming. Markets have already begun to price in the possibility that a cycle of rate cuts could begin as soon as this summer. “
The latest bet on the futures market is that the probability of the Fed raising interest rates by 1 yard (25 basis points) at the meeting on May 2-3 is 86%, and the probability of pausing interest rate hikes in June is 71%.
goldIt rose to $2,055.30 an ounce last Thursday, not far from the $2,069.40 hit on August 6, 2020.silverIt also stood at a high point since April last year.
Ole Hansen, head of commodity strategy at Saxo Bank, said:goldandsilverAfter such a strong rally, the rally is facing consolidation, especially as relative strength indicators are starting to show signs of overbought in both gold and silver.
platinumandgoldBoth jumped on Tuesday, with TD’s Ghali analysis both benefiting from a major supply shock caused by a power outage in South Africa.
Comex Metals Commodities Trading
- delivered in MaySilver futuresThey gained 18 cents, or 0.7%, to $25.26 an ounce.
- delivered in Maycopper futuresThey gained 3 cents, or 0.6%, to $4.09 a pound.
- delivered in julyPlatinum FuturesIt gained $37.70, or 3.6%, to $1,097.30 an ounce.
- delivered in JunePalladium FuturesThey gained $82.40, or 5.3%, to settle at $1,642.90 an ounce.
