RateCaptain
  • FX Rates
  • Commodities
  • Money Market
  • Cryptocurrency
  • Corporates
  • Contact Us
No Result
View All Result
Subscribe
  • FX Rates
  • Commodities
  • Money Market
  • Cryptocurrency
  • Corporates
  • Contact Us
No Result
View All Result
Rate Captain
No Result
View All Result
Home Commodities

Gold Moves Above $1,800 an Ounce Despite U.S Fed Interest Rate Hike

Rate Captain by Rate Captain
May 5, 2022
in Commodities
Reading Time: 2 mins read
A A
0
Share on FacebookShare on TwitterShare on WhatsappShare on Telegram

The safe-haven asset and yellow metal rose over $32 at the start of today’s trading session in London, despite the U.S. Central bank’s decision to interest the interest rate by 1percent in its latest effort to curb inflation. The Fed highlighted inflation as a risk to the economy while also ruling out larger hikes for the rest of 2022.

The unprecedented surge in the price of Gold came as a surprise, particularly after the Fed increased its interest rate as an outcome of the meeting it held on Tuesday and Wednesday. Although, the increase in the interest rate was expected to improve the dollar index (a measure of the strength of the U.S. dollar), however, a decline was seen which suggests that the increase of the interest rate has been adjusted for in the pricing of risky assets like Gold.

AlsoRead

Ghana begins the purchase of the Yellow Metal in a bid to strengthen its currency

Brent Price surges to $114 as China Eases Lockdown Restrictions in Shanghai

Goldman gives senior staff unlimited vacation in bid to retain talent

Gold futures went up by over 1.53%, currently trading at about $1,897.5 an ounce, from about $1,868.78 an ounce it traded in the last session. The dollar, which normally moves inversely to the gold, is experiencing a decline, as it trades near a one-month low.

Keynotes

  • The Federal Reserve raised interest rates by the steepest increment since 2000 and decided to start shrinking its massive balance sheet, deploying the most aggressive tightening of monetary policy to control the soaring inflation.
  • The U.S Central Bank’s policy-making Federal Open Market Committee on Wednesday voted to unanimously increase the benchmark rate by a half percentage point.
  • The Fed hiked its interest rate to 1% on Wednesday.
  • Fed Chair, Jerome Powell said the 75-basis points super-hike feared by investors is “not something that the committee is actively considering,” adding that policymakers view the “neutral” level of the fed funds rate to be 2% to 3%.
  • Powell also appealed to Americans struggling with high inflation to be patient while policymakers take the hard measures to bring it under control.
  • He also said the Fed has ruled out, for now, a rate hike of three-quarters of a percentage point at the central bank’s upcoming monetary policy meetings.
  • The yellow metal- Gold, which is often regarded as a hedge against rising costs, jumped 1% on the release of Powell’s statement.
  • However, the U.S. Treasury yields also fell sharply on Wednesday, boosting the yellow metal.
  • The Bank of England will hand down its policy decision later in the day.

For other precious metals, such as; silver, it went up 2.58%, currently trading at $22.97 an ounce. However, Platinum marginally declined by 0.90%, and it’s currently trading at $987.50 an ounce. Also, Palladium declined by 0.15%, currently trading at $2,255.50 an ounce, as of the time of this writing.

Previous Post

CBN Advises Nigerian Commercial Banks to Pay more attention to financial transactions linked with Benin Republic

Next Post

Binance gives $500 million to finance Elon Musk’s Twitter takeover

Related News

Ghana begins the purchase of the Yellow Metal in a bid to strengthen its currency

Ghana begins the purchase of the Yellow Metal in a bid to strengthen its currency

by Rate Captain
May 19, 2022
0

Ghana has started the bulk purchase of the yellow metal-Gold, to raise the gold component of its reserves in a...

Brent Price surges to $114 as China Eases Lockdown Restrictions in Shanghai

by Rate Captain
May 17, 2022
0

The Brent Crude price surged by 0.12% today, Tuesday 17th May 2022 to trade at $114.17per barrel as of the...

Goldman gives  senior staff unlimited vacation in bid to retain talent

Goldman gives senior staff unlimited vacation in bid to retain talent

by Rate Captain
May 17, 2022
0

Goldman Sachs will allow its senior staff to take an unlimited number of vacation days, the latest move by a...

Oil Market Volatility Continues as Prices Remain Above $100 per Barrel

Oil Market Volatility Continues as Prices Remain Above $100 per Barrel

by Rate Captain
May 12, 2022
0

Sequel to the global energy disruption resulting from the Russian-Ukraine war, volatility in oil markets has continued as prices swing...

Next Post
Binance gives $500 million to finance Elon Musk’s Twitter takeover

Binance gives $500 million to finance Elon Musk’s Twitter takeover

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

MOMAN Debunks Rumor of Aviation Fuel Selling at N700 per Litre

Oil Marketers, Airlines reach loggerheads over local Aviation Price

May 20, 2022

Naira Depreciates at all Markets: Naira Hits N610/$1 at B2B Market

May 20, 2022

Popular Story

  • Sterling Bank to face sanctions by APCON over provocative Easter Message “Likening Christ resurrection with Agege Bread”

    Sterling Bank to face sanctions by APCON over provocative Easter Message “Likening Christ resurrection with Agege Bread”

    0 shares
    Share 0 Tweet 0
Rate Captain

RateCaptain

We bring you the most accurate in new and market data. Check our landing page for details.

  • FX Rates
  • Commodities
  • Money Market
  • Cryptocurrency
  • Corporates
  • Contact Us

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

No Result
View All Result
  • FX Rates
  • Commodities
  • Money Market
  • Cryptocurrency
  • Corporates
  • Contact Us

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.