Arab Press

بالشعب و للشعب
Saturday, Oct 05, 2024

Gold drops as inflation risks after OPEC+ oil target cut raise Fed hike odds

Gold drops as inflation risks after OPEC+ oil target cut raise Fed hike odds

Gold prices slid on Monday after a surprise announcement from the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, about a cut to oil output sparked inflation concerns and raised bets of an interest rate hike at the US Federal Reserve’s upcoming May meeting, according to Reuters.
Spot gold was down 0.6 percent at $1,956.89 per ounce, as of 0709 GMT, its lowest in nearly a week. US gold futures shed 0.7 percent to $1,971.30.

The opportunity cost of holding non-yielding bullion rises when interest rates are increased to lower inflation.

Gold has fallen “as investors weigh up the lure of gold as a safe-haven asset, versus the potential for higher-for-longer interest rates. Clearly, fears of inflation and higher interest rates has won the argument,” said Matt Simpson, senior market analyst at City Index.

Oil prices surged after Saudi Arabia and other OPEC+ oil producers announced a round of output cuts, a potentially ominous sign for global inflation just days after a slowdown in US price data had boosted market optimism.

US consumer spending rose moderately in February and showed signs of cooling, even though it remained elevated.

“Gold is now vulnerable to a move down to $1,900, given the potential for a higher terminal Fed rate that markets are currently pricing in,” Simpson added.

Markets now see a 60.9 percent chance of the Fed hiking rates by a quarter point in May which, in turn, has lifted the US dollar and Treasury yields.

ANZ, in a note, observed gold’s “safe-haven demand easing as the US banking turmoil eased.”

Bullion had risen by nearly 8 percent last quarter after the recent global banking turmoil drove bets that the Fed would tone down its rate hike approach.

Standard Chartered analyst Suki Cooper said in a note that gold buying by central banks might “not be as strong as it was in 2022.”

Spot silver slipped 1.6 percent to $23.69 per ounce, platinum lost 0.5 percent to $986.83, and palladium fell 0.4 percent to $1,455.16.
Comments

Oh ya 2 year ago
Gold on sale? Great back the truck up. If you have any idea where the economy is headed you know you need some gold and silver stored outside the banking system. ie safety deposit boxes

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Russia Removes Taliban from Terrorist List, U.S. and South Korea Strengthen Defense Ties Amid Global Tensions
Donald Trump Urges Israel to Hit Iran's Nuclear Facilities First
US Army Tests Armed Robot Dogs in the Middle East
Biden Advises Israel Against Striking Iranian Oil Fields
US Strikes 15 Houthi Targets in Yemen Amid Ongoing Tensions
Israel Wipes Out Entire Hezbollah Leadership in Yet Another Devastating Strike in Beirut
Global Tensions Surge: Nuclear Threats, Natural Disasters, and Crime Crackdowns Shape a Tumultuous Week
Intensifying Conflicts: Israeli Airstrike Tragedy, Iran's Bold Stance, and Rising Tensions Across Asia and the Americas
Unlikely Alliances and Global Tensions: From U.S. Politics to Middle East Conflicts
Global Turmoil: Lebanon's Humanitarian Crisis, Mpox Outbreak in Africa, and Escalating Tensions in the Middle East
Rising Tensions: France Criticizes Israel, Jordan Launches Solar Hospital Amid Escalating Middle East Conflict
Biden Discusses Possible Israeli Strikes on Iran's Oil Facilities
Escalating Conflict: Israel's Intensified Military Actions and Regional Evacuations Amid Tensions with Hezbollah
Regional Tensions Surge: Israel's Military Moves in Lebanon, Morocco's Flood Relief, and Global Diplomatic Shifts
Middle East Tensions Escalate: Israeli Strikes and Humanitarian Efforts Amidst Regional Conflicts
Global Tensions Escalate: Iran Resumes Flights Amid Missile Attack, Nobel Peace Prize Debate, and Ongoing Conflicts
Singapore's Former Transport Minister Jailed in Historic Corruption Case Amidst Escalating Middle East Tensions
Global Unrest: From Guided Bombs in Kharkiv to Corruption Convictions in Singapore — A Snapshot of Today's Headlines
Global Unrest: Tragic Migrant Deaths in Mexico, Armenian Protests, US Election Drama, and Middle East Tensions
Iranian Mullah Claims Israel Used Genies to Hunt Hezbollah Leader
Iran's Missile Barrage at Israel Amid Escalating Middle East Tensions and Global Wildfires
Cyprus Opens Safe Passage for Middle East Evacuees Amid Escalating Tensions; Global Calls for Peace as Aid to Gaza Dwindles
Daesh Ambush Kills Iraqi Soldiers Amid Middle Eastern Turmoil as Nations Mobilize Evacuations and Aid
Kremlin Urges Restraint Amid Middle East Escalation; UN Barred by Israel, Desperate Search for Migrants off Djibouti Coast
Global Defense Tech, Protests, and Geopolitical Tensions Mark Headlines Amid Rising Military Expenditures and Regional Conflicts
UK PM Keir Starmer to Meet EU’s Ursula von der Leyen in Bid to Reset Post-Brexit Relations
Global Turmoil: Heated VP Debate, Taiwan Braces for Typhoon, and Escalating Middle East Conflict
Israeli Airstrikes in Beirut Force Residents to Seek Safety on the Beach
Iran Urges UN Action After Israel Strike, Amid Global Reactions and Regional Tensions
Jimmy Carter Celebrates 100th Birthday
Iraqi Armed Groups Threaten U.S. Bases Amid Iran-Israel Tensions
Iran's Missile Attack on Israel: Defeated but a Significant Escalation
Iran President Lauds Missile Attack on Israel as Decisive Response
Russia Criticizes Biden's Middle East Policies After Iran Attacks Israel
Iran's Missile Attack Spurs Israel's Strategic Response
Netanyahu Warns Iran After Failed Missile Attack on Israel
Renaming Controversy in Johannesburg; Iran's Missile Strike Heightens Middle East Tensions
European Airlines Suspend Middle East Flights Amid Rising Regional Tensions and Safety Concerns
UN Calls for Ceasefire as Lebanon Conflict Escalates: International Tensions and Evacuations on the Rise
Kamala Harris Denounces Iran as 'Dangerous' Force in Middle East
KLM Halts Tel Aviv Flights Amid Regional Tensions; Global Reactions Span from Conflict to Celebrations
Global Tensions Rise: France Deploys Carrier for Lebanon Evacuations, Iran Faces Deadly Flash Flood, and NATO's New Chief Stresses Unity
Zelensky Warns of Rising Tensions and Military Escalations Amid Global Power Shifts and Regional Instabilities
Far-Right Gains in Austria, US Military Buildup in Middle East, and Sudanese Aid Access Highlight Global Turmoil
Court Denies Bail to Imran Khan; German and UK Diplomats Act Amid Escalating Israel-Lebanon Conflict
Dubai's Viral Chocolate Bar and Middle East Tensions: A Cross-Continental Headlines Mix
European Ministers Hold Emergency Meeting After Hezbollah Leader Killed in Airstrike Amid Rising Israeli-Lebanese Conflict
Netanyahu Warns Iran: No Place in Middle East Beyond Israel's Reach
Israel Conducts Limited Ground Operations Against Hezbollah in Lebanon
Former Iranian President Mahmoud Ahmadinejad Reveals Shocking Mossad Infiltration in Iran's Secret Service
×