Powell promised to continue raising interest rates, gold futures hit a 16-month low for three consecutive black copper | Anue Juheng

US Federal Reserve (Fed) Chairman Powell attended a congressional hearing on Wednesday (22nd) and expressed his stance on continuing to raise interest rates to tame inflation.Gold FuturesSlightly down, closing black for the third consecutive trading day,Copper futuresIt fell to a 16-month low.

  • New York for August deliveryGold FuturesPrices closed down $0.40, or 0.02%, at $1,838.40 an ounce.goldSpot prices ended higher, up 0.4% at $1,840.39 an ounce.

David Meger, director of metals trading at High Ridge Futures, said:goldThe pendulum of market fundamentals is swinging back and forth between inflationary pressures and the Fed’s pledge to fight it. Gold prices fell from time to time as the Fed took a hawkish stance. “

Chintan Karnani, director of research at Insignia Consultants, said,goldTraders and investors are focused on inflation and energy prices, but the possibility of a recession in the second half of the year is raising the odds that the Fed will hold off on raising interest rates, which in turn supports gold prices.

Karnani said that if gold prices can hold above $1,810 a day in the third quarter, a move towards bulls will be made, with a price target of at least $1,950 an ounce.

Powell vowed to raise interest rates on Wednesday, showing determination to suppress inflation, he believes that a recession is not inevitable, but the probability of recession is not particularly high at this stage.

“We expect continued rate hikes will be appropriate, and policy changes will depend on the coming economic data and how the outlook evolves,” Powell said.

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Gold FuturesKick-off 2022 at $1,800 an ounce, having risen above $2,050 in March, gains were almost wiped out in the second quarter as the dollar strengthened, although it remained above $1,800.

Commerzbank’s team of commodity analysts said,silvertrend is almost the same asgoldAt the same time, emerging market demand is hitting precious metal prices, especially the impact of China’s epidemic prevention and zero-clearing policy. So far this week,goldremain roughly flat,silverdown less than 1%.

Copper prices tumbled to a 16-month low on Wednesday, Seven Report Research said. The low price of copper is a clear negative sign for global economic growth and the stock market. Until copper prices stabilize, it is doubtful that any gains in the stock market will be sustainable.

Other Metal Commodities Trading
  • Delivered in JulySilver FuturesIt closed down 35 cents, or 1.6 percent, at $21.421 an ounce.
  • Delivered in JulyCopper futuresIt fell 9 cents, or about 2.4 percent, to settle at $3.944 a pound, the lowest since February last year.
  • Delivered in JulyPlatinum FuturesIt fell $12.60, or 1.3 percent, to settle at $926.90 an ounce.
  • Delivered in SeptemberPalladium FuturesIt fell $24.80, or 1.3 percent, to settle at $1,837.90 an ounce.

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