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

Food prices continue to surge in November 2022

Demand for OPEC-13 crude oil projected to hit 29.3 mb/d in 2023 – report

OPEC decision on oil production cut, unanimous – FG

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

CBN plans to use GSI in recovering loans from defaulters on the Anchor Borrowers’ Program

Food prices continue to surge in November 2022

by Rate Captain
December 28, 2022
0

The National Bureau of Statistics (NBS), said that prices of selected food items increased in November. This is, according to...

Angola Surpasses Nigeria, Becomes Africa’s Largest Oil Producer in August

Demand for OPEC-13 crude oil projected to hit 29.3 mb/d in 2023 – report

by Rate Captain
November 15, 2022
0

OPEC-13 crude oil demand is projected to hit 29.3 million barrels per day (mb/d) in 2023. This is according to...

Angola Surpasses Nigeria, Becomes Africa’s Largest Oil Producer in August

OPEC decision on oil production cut, unanimous – FG

by Rate Captain
October 19, 2022
0

The Federal Government on Tuesday said the decision by the Organisation of Petroleum Exporting Countries to cut two million barrels...

Ukraine Makes First Grain Shipment Since Russia’s Invasion

Ukraine Makes First Grain Shipment Since Russia’s Invasion

by Rate Captain
August 1, 2022
0

Ukrainian first grain shipment since Russia’s invasion on February 24 has left the black sea port of Odesa in Ukraine...

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

Airtel Africa’s nine-month turnover hits $3.9billion.

Airtel Africa’s nine-month turnover hits $3.9billion.

February 3, 2023
Charges on cash transactions skyrocketed by POS agents.

Charges on cash transactions skyrocketed by POS agents.

February 3, 2023

Popular Story

  • CBN reduces over-the-counter withdrawals to N100k, N500k per week for individuals, companies

    CBN Directs Banks to Start Paying New Naira Notes Over the Counter.

    0 shares
    Share 0 Tweet 0
  • MTN Nigeria Annual profit hits N361.5 billion.

    0 shares
    Share 0 Tweet 0
  • Shell’s annual profit hits $39.9 billion.

    0 shares
    Share 0 Tweet 0
  • Charges on cash transactions skyrocketed by POS agents.

    0 shares
    Share 0 Tweet 0
  • Naira depreciates to N749/$ in the parallel market.

    0 shares
    Share 0 Tweet 0
RateCaptain

RateCaptain

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

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

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

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

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

?>