Books – Islam Saeed Wednesday, August 09, 2023 05:29 PM
After the release of China’s data and the downgrade of the rating of a number of US banks, the financial markets witnessed a state of investors’ aversion to risk, which was evident in the sale of US stocks and the decline in the major currencies for the account of the US dollar, but gold did not benefit from this despite being a safe haven in the markets.
Gold was unable to play the role of a safe haven in the markets yesterday due to the negative pressure on it from expectations that the inflation data that will be issued tomorrow for the US economy will witness a higher-than-expected rise during the month of July, which increases the chances of the Federal Reserve continuing monetary tightening to raise prices. Additional interest for the remainder of this year.
During the month of July, US crude oil prices rose by more than 16%, bringing the price of a barrel of oil up by more than $11, to complete the rise since the beginning of August, and it is currently trading at $83 a barrel.
The rise in crude oil prices increases inflationary pressures on the United States of America, and makes us expect that the next inflation reading will be higher than expectations, and thus the scenario of raising interest rates by the Federal Reserve will return to the fore again, which prompted gold to decline, which we saw yesterday, and its abandonment of its role as a safe haven. in the markets.
2023-08-09 14:29:00
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