Thursday, 5/06/2021 15:49
GOLD PRICES leapt to a new 10-week high Thursday afternoon in London, jumping through $1800 per ounce amid fresh East-West cold war rhetoric as Western stock markets fell with longer-term bond yields, but inflation forecasts rose after the US Federal Reserve vowed to maintain its zero-rate and record-QE policies. Staff from the new White House were today due to start trade talks with Beijing s Communist dictatorship for the first time, but There is a general worry of miscalculation, and of incidents and accidents over China s continued belligerence towards its neighbors, said Biden s top Asia official. Beijing today indefinitely suspended co-operation talks with Canberra, blaming the Australian government s
US Fed hawks join chorus talking down inflation fears
Bloomberg
US inflation is unlikely to get out of control despite the unprecedented government spending that has been authorized in response to the COVID-19 pandemic, US Federal Reserve officials said on Wednesday.
“Our baseline view is that inflation is going to be close to our long-run objective of 2 percent, but we will be vigilant,” Fed Vice Chairman Richard Clarida told CNBC in a television interview.
“I think what the data is telling us now is there is going to be some upward movement as we reopen, but that it won’t persist over a long period of time, and that’s my view as well,” he said.
Gold prices fell on Tuesday as a stronger dollar and rising Treasury yields dented demand for the safe-haven metal ahead U.S. inflation data later in the day. Spot gold fell 0.4% to $1,725.15 per ounce by 0633 GMT. U.S. gold futures were also down 0.4% at $1,726.20 per ounce. At the moment, a stronger dollar and higher yields on Treasuries are exerting pressure on gold, said Amit Sajeja, a vice president at Motilal Oswal. A stronger dollar pressures gold as the metal becomes expensive for buyers outside the United States, while higher returns on bonds increases the opportunity cost for holding non-yielding bullion.
by Tyler Durden
Monday, Apr 12, 2021 - 09:44 AM
Looking at the busy week ahead, the pandemic will remain in focus as the new case count is still moving higher at the global level even if the US now appears to have left covid behind. In the week ending last Friday April 9, the numbers recorded by John Hopkins University showed a 4.45m increase in cases globally, which compares with increases of 4.11m, 3.78m and 3.29m in the 3 weeks before that, so as Deutsche Bank notes, we ve seen an acceleration in the past month, although the rate of increase is still shy of the peaks in December and January.