Gold futures rise amid ‘uncertainty and anxiety’ in markets
Gold futures rose on Wednesday, creating a sustained bounce from losses in the previous session, buoyed by uncertainty around the impact of the omicron variant of the coronavirus, as the dollar weakened. weak, but government bond yields rose.
Fawad Razaqzada, market analyst at ThinkMarkets, said gold has rebounded, although it has been contained following the hawkish remarks of Federal Reserve Chairman Jerome Powell on Tuesday, Fawad Razaqzada, the Market analysis at ThinkMarkets.
Powell on Tuesday surprised market participants by testify before the Senate Banking Committee A gradual acceleration of monthly asset purchases when policymakers meet later this month could be warranted amid the emergence of the novel coronavirus.
Powell is scheduled to testify Monday before lawmakers on Wednesday. Monetary policymakers meet on December 14-15 to collect the final rate figures for 2021.
Razaqzada said Tuesday’s remarks by Powell “have been priced in by the market, and the Fed has always been behind the curve anyway.”
““Powell’s comments have been priced in by the market and the Fed has always been behind the curve anyway.””
The Fed chair said the central bank is “considering wrapping up our asset purchases…perhaps a few months earlier,” as the threat of persistently higher inflation has grown and it’s time to give up. “temporary”.
“Growth spiked following his comments and the dollar bounced back higher, gold dumping to new weekly lows and stocks with a higher volatility,” Razaqzada, in a market update said in a market update. Low dividend yields in the tech sector have fallen.” But on Wednesday, “all of those moves were reversed amid a tougher tone on risk.” US benchmark stock index Trade more widely on Wednesday.
The most active February gold contract
GCG22,
GC00,
is trading $15, or 0.8%, higher at $1,791.50 an ounce, after 0.5% declined on Tuesday, According to Dow Jones Market Data.
However, silver futures extended their losses from Tuesday, with silver in March
SIH22,
down 10 cents, or 0.4%, at $22,715 an ounce.
Financial markets have been rattled by concerns about the omicron variation, which may have prompted some to sell the safe-haven metal, perhaps, in response to margin calls.
“There is still some safe-haven demand in the precious metal as there is still some uncertainty and anxiety in the market,” said Jim Wyckoff, senior analyst at Kitco.com.
On Wednesday, the dollar was trading slightly lower, as measured by the ICE US Dollar Index
DXY,
is 95,703. Meanwhile, the yield on the 10-year Treasury note
TMUBMUSD10Y,
about 1,474 percent, up from 1.44 percent at 3 p.m. Eastern Tuesday.
Richer yields could reduce appetite for bullion. Dollar volatility can also affect gold as the metal is traded in greenbacks.
Meanwhile, in terms of economic data, Automatic Data Processing Inc.
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pointed out that private sector employers added 534,000 jobs in November, better than the average forecast of 506,000 from economists surveyed by Dow Jones but down from the previous reading in October of 571,000.
Gold prices continue to trade higher after key index of US-based manufacturers rose from 60.8% the previous month to 61.1% in November, according to the Institute of Supply Management. That is in line with the forecasts of economists polled by The Wall Street Journal.
Among other metals traded on Comex, the March copper
HGH22,
rose 0.7% to $4,309 a pound. January Platinum
PLF22,
up 1.6% to $941.70/ounce and March palladium
PAH22,
traded at $1,734 an ounce, up 1.7%.
https://www.marketwatch.com/story/gold-futures-edge-higher-but-dollar-and-yield-moves-hem-in-precious-metals-price-11638365450?rss=1&siteid=rss Gold futures rise amid ‘uncertainty and anxiety’ in markets
