Original title: InternationalGold priceStay firm, despite the dollar rebound, investors question the prospects
On Thursday (October 21), international gold prices remained firm. Although the dollar bottomed out and rebounded to limit the rise of gold, investors questioned that high inflation would prompt the central bank to raise interest rates earlier, because high inflation is accompanied by growth expectations Weaken.
At 16:35 Beijing time, spot gold rose by 0.17% to US$1,785.15 per ounce; the main COMEX gold contract rose by 0.04% to US$1785.7 per ounce; the US dollar index rose by 0.05% to 93.656. The U.S. index hit a new low of 93.494 since September 28.
So far this month, the price of gold has remained within the range of US$1,748 and US$1,800 per ounce.
The US dollar index hit a new low of 93.494 since September 28 on Thursday, bringing gold closer to the upper edge of this range; but the yield on the US 10-year Treasury bond hit a five-month high of 1.672%, putting pressure on gold prices.
DailyFX currency strategist Ilya Spivak said: “Gold’s overall direction does not build momentum. Given that the Fed will act fast enough to curb inflation, or whether inflation will exceed the Fed’s tightening speed, there is still uncertainty. So it is still unclear what level the actual yield will reach. Although the market’s overall tendency to bearish gold due to rising yields has declined, it is unlikely that we will gain strength until the Fed’s next policy direction becomes clearer. Strong directional guidance.”
Fed Governor Quarles said on Wednesday (October 20) that although the Fed is about to start reducing its bond purchase program, it is “too early” to start raising interest rates. Although high inflation may only subside next year.
The Federal Reserve said in its latest economic report compilation Beige Book on Wednesday that US employers reported substantial increases in prices and wages, even though the US economy slowed to grow at a “modest to moderate” pace in September and early October.
UBS analysts predicted in a report that the price of gold will reach $1,700 per ounce in late March 2022 and will fall back to $1,600 per ounce in late December 2022. But the bank also said that rising inflation expectations and weakening growth expectations, especially in the context of soaring energy prices and slowing industrial activities, may support gold prices in the next one or two months.
Online spending during the US holiday season is expected to record the slowest growth rate in at least eight years, as product shortages, price increases, and lingering uncertainties related to the epidemic may put pressure on the shopping season.
According to a congressional source familiar with the discussions, the White House told Democrats on Wednesday that the US corporate tax hike plan is unlikely to enter their iconic social spending bill.
The White House revealed in a private meeting with senior Democratic leaders that President Biden’s plan to increase the corporate tax rate from 21% to 28% is a key campaign promise. This may be his work to guide his economic recovery plan to be approved by Congress. One of the huge concessions. (Huitong.com)
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