Investing.com – US stock markets opened slightly higher today, with markets generally looking forward to Wednesday.
While both the dollar and gold reversed their trends during these moments of today’s trading, after the dollar’s gains reached 0.3%, it now settles on a slight decline, while gold turned upward after its losses during today’s trading reached 0.9%, to now settle on a slight increase.
Read also
Where does the gold go?
According to a recent Reuters survey, gold is expected to decline in 2023, and expectations indicate a decline in gold to record an average of $1852.50 an ounce in 2023, and an average of $1890 an ounce in 2024.
The survey stated that the price is likely to reach an average of $23 in 2023, and increase by an average of $24 in 2024.
However, Reuters said that economic analysts expect a rise in prices in the future to limit the upward trend in gold prices.
dollar after interest pricing
ING Bank analysts indicated that the US dollar is moving in a flexible range ahead of the issuance of.
In this regard, the expectations of the bank’s economists indicated that the US Federal Reserve has rational reasons for it to adhere to the hawkish rhetoric regarding the continuation of interest rate hikes, while confronting expectations that the US Federal Reserve is close to reaching the final interest rate in 2023; Which eventually gives more strength to the US dollar.
The bank also made it clear that the US dollar could hold on to the gains it achieved in yesterday’s trading on Monday, in the wake of the FOMC’s decision, however, volatility may increase significantly during the remaining trading of this week.
The Fed should surprise the markets
The economist, Mohamed El-Erian, said that the US Federal Reserve must raise the interest rate more than what the markets expect in its first meeting this year, because inflation may stop its downward trend in the coming months if interest rates are stopped strongly.
Al-Erian made it clear that he supports raising interest rates by about 50 basis points during the upcoming February meeting, especially since inflation is expected to stabilize near the level of 4% in the second half of this year. He also prefers to finish tightening now and the economy is strong, rather than wait until the economy is weak and tightening will be very difficult at this time.
Everyone is walking behind the Federal Reserve… before interest rates
The monetary guardian of the United States managed to get the rest to go along with it through the power of formidability. Central bankers are loath to acknowledge the pressure of foreign exchange markets. But the extent to which almost all major currencies fell against the US dollar frightened them, down nearly 16 percent at some point in 2022, down more than 20 percent, and the yen by almost a quarter. Their response was to follow huge increases in interest rates.
If he turns half a point into a quarter point at a meeting tomorrow, he will make way for others to do the same. The risk is that the overheating labor market in the US continues and the Federal Reserve does not ease its policy. Others will again feel the need to match his ability, even though their economies are in a much weaker position.
The big danger of 2023 is that rate-setters are so afraid of losing face that they take action to back up what they say, not only speaking out tough but imposing several large rate hikes. Rapid increases in borrowing costs will inevitably push economies into recession. It could also spark waves of financial turmoil that made last fall’s British government bond market panic look like a blip.
markets now
Wall Street at the opening
Wall Street’s major indices opened higher on Tuesday after data on rising wages indicated inflation eased ahead of the Fed’s interest rate decision.
The industrial index started trading, up 86.47 points, or 0.26 percent, to 33,803.56 points.
The index increased by 3.08 points, or 0.08 percent, to 4,020.85 points.
While the Nasdaq Composite Index rose 4.76 points, or 0.04 percent, to 11,398.58 in early trading.
gold now
It rose during the current moments to levels near $ 1925 an ounce, an increase of 0.1%.
On the other hand, futures contracts for the yellow metal rose during these moments of today’s trading, at levels near $ 1924 an ounce, an increase of about 0.05%.
dollar now
It settled at the current moments at the levels of 102,007 points.
—
Stay informed about the market..and keep the news of the economy always close to you
Investing offers a comprehensive economic service of live data, streaming news, real-time alerts, private portfolios and tools to track your investment on our website or app.
You can follow us on all social media:
Youtube: https://www.youtube.com/@investingcomsa
FB: https://www.facebook.com/investingcomSA
Twitter: https://twitter.com/investingsa
