Global gold prices declined

Global gold prices declined: Decline in Gold Prices during Wednesday’s trading due to the stabilization of the US dollar and the rise in Treasury yields.

 

Content:

Decline in Gold Prices

Rise in Oil Prices

Important Statements from a Bank of Japan Member

 

 

 

Global gold prices declined: 

Gold Prices declined during Wednesday’s trading due to the stabilization of the US dollar and the rise in Treasury yields.
This comes ahead of announcing a series of critical inflation data in the United States,
which could provide further insights into the Federal Reserve’s interest rate path.
The US dollar index rose, making gold less attractive to holders of other currencies,
while the yields on 10-year US Treasury bonds rose to their highest levels in several weeks.

 

Rise in Oil Prices:

Oil prices rose in Asian trading on Wednesday as investors expected major producers to continue reducing production at their upcoming meeting on Sunday.
It is also anticipated that fuel consumption will increase with the start of peak demand season in summer.
Investors are also awaiting US crude oil inventory data to be released by the American Petroleum Institute later today.
The data release was delayed by one day due to Memorial Day on Monday.
On the New York Mercantile Exchange, crude oil contracts for July
were traded at $80.09 per barrel at the time of writing, up by 0.33%.

 

 

 

Important Statements from a Bank of Japan Member:

In his statements today, Seiji Adachi, a member of the Bank of Japan’s Board of Directors, expressed several points:

The Bank of Japan should avoid raising interest rates prematurely or making large moves in interest rates,
as these could disrupt household and corporate investments.

The Japanese economy is experiencing a moderate recovery despite some weak signals,
with service consumption remaining steady in spending.

Frequent changes in monetary policy to stabilize foreign
exchange movements can lead to significant changes in interest rates.

 

Global gold prices declined.

European stocks experienced declines before releasing important data

European stocks declined before releasing important data: European stock markets saw a downturn on Tuesday,
with losses in technology company stocks against a rise in consumer staple
goods stocks ahead of important economic data for the Eurozone later in the day.

 

Topics

A historic shift by the Bank of Japan led to losses for the yen

European stocks see declines ahead of important data release

Gold prices fall sharply during today’s trading

 

A historic shift by the Bank of Japan leads to losses for the yen.

 

The Yen incurred significant losses on Tuesday following the Bank of Japan’s decision to end its negative interest rate policy,
a move that was highly anticipated.
This marks a historic step after years of the Bank of Japan adopting significant financial stimulus policies,
During a two-day monetary policy meeting, the bank ended the eight-year negative interest rate regime and
 other unconventional measures.
Following this news, the yen saw a 0.8% drop, exceeding 150 yen against the dollar.
The yen’s exchange rate at the end of trading was 150.39 yen against the dollar, also falling by more than 0.7% to 163.425 yen against the euro,
its lowest level in three weeks. Following Japan’s first interest rate hike in 17 years,
the Bank of Japan announced it would maintain “accommodative financial conditions” by setting overnight interest rates between zero and 0.1%.

 

European stocks experienced declines before releasing important data.


European stock markets saw a downturn on Tuesday, with losses in technology company stocks against
a rise in consumer staple goods stocks ahead of important economic data for the Eurozone later in the day.
Due to technological stock sell-offs, the European STOXX 600 index fell by 0.1% by 8:24 GMT.
Investors are monitoring wage data and labour costs for the last quarter of the Eurozone,
in addition to a survey conducted by the German Economic Research Institute on economic expectations for March.
However, investors’ main focus remains on the U.S. Federal Reserve regarding monetary policy,
which is set to be announced on Wednesday.
It is widely expected that the Federal Reserve will keep interest rates unchanged.
Attention will also be paid to the central bank’s economic outlook
and estimates for the number of interest rate cuts this year.

 

 

 

Gold prices retreat sharply in today’s trading


Gold prices are falling on Tuesday due to the dollar’s rising value as investors await the U.S. Federal Reserve meeting to discuss monetary policy,
which may provide further signals about the timing of interest rate cuts this year.
The dollar’s value increased by more than 0.2% to its highest level in about two weeks,
negatively affecting the cost of gold for holders of other currencies.
The Federal Reserve is generally expected to keep interest rates unchanged at the end of the meeting on Wednesday,
while markets await economic forecasts and interest rate developments by monetary policymakers.
Gold prices fell by 1% over the past week after data showed a strong rise
in U.S. consumer prices in February and a higher-than-expected increase in producer prices,
reducing expectations for an early interest rate cut by the Federal Reserve.

 

European stocks experienced declines before releasing important data

The Japanese yen fell after BOJ decision to keep the ultra-easy policy


The Japanese yen fell after the Bank of Japan’s decision to keep the ultra-easy policy:

The yen fell as a result of the Bank of Japan’s decision to keep its tight monetary policy. 

The Japanese Yen fell by 0.5%, while Asian stocks saw no change.
The bank’s decision to keep the interest rate at -0.1% came amid speculation
that the bank would cancel its tight monetary policy, and according to a Bloomberg poll,
experts believe that next April is the best time to make a change in the bank’s policy.
Both the dollar and the euro rose 1% against the yen,
and each is preparing to achieve the largest daily gain since the end of October,
with the US currency reaching 144.27 yen, and the common currency 157.68.

 

Content
Japanese Topix index
Chinese economy
Australian shares
American market
Rate cuts in the United States
Market news

 

Japanese Topix index

The Japanese Topix index (Tokyo Stock Price Index)showed that steel is the sector with the most losses.
Nippon Steel fell by more than 6% after it announced its purchase of United States Steel for $14.1 billion.
This deal would create the largest steel company in China the second largest in the world,
and the largest supplier to American automakers and manufacturers.

 

Chinese economy

As for the Chinese economy, it is still in the recovery phase.
Weak development continues to affect the economic recovery.

The value of Country Garden Services reached its lowest level after it declared some of its funds as losses.
As for China South City, which is partly owned by the southern city of Shenzhen,
it had previously warned of its inability to make the interest payment due on Wednesday,
which may affect its ability to repay loans.

It is also expected that the Chinese CSI 300 index will suffer an annual loss for the third year in a row,
and the index has declined by more than 13% this year.

 

Australian shares

As for the Australian market, Australian stocks rose,
while American contracts had a small rate of change,
while Wall Street continued to rise since Monday due to a large number of transactions,
and traders ignored all warnings from Federal Reserve officials regarding monetary easing. As for the Nasdaq 100 index,
it continued its rise, achieving record gains for the second session in a row.

 

 

American market

The S&P 500 index has maintained its rise for seven weeks,
and it cannot be determined whether the index will maintain its pace of rise for the eighth week.
While interest on two-year bonds rose by 4.5%, ten-year bond yields also reached 4%,
while Treasury bonds in Japanese transactions were stable while the dollar index fell.

Marko Kolanovic, a strategist at JP Morgan, expects a decline in inflation and economic demand data for 2024,
which will allow the Federal Reserve Bank to start cutting interest rates by 25 basis points at each meeting in the middle of the year.

 

Rate cuts in the United States

The President of the Federal Reserve Bank of Chicago, Austin Goolsbee,
the President of the Federal Reserve Bank of Cleveland, Loretta  Mester,
joined the group of central bank presidents who wanted to reduce optimism in the market
regarding everything related to the issue of reducing the interest rate, and at the same time,
it was confirmed that talk about reducing Interest in March was premature.

 

Market news

Lithium giant SQM has purchased Azure Minerals for $1.1 billion in partnership with the richest Australian woman.

As for gold, it stabilized on Monday, while oil approached its highest price in two weeks
after many companies decided not to cross the Red Sea following the increase in Houthi attacks on ships in the main shipping channel.

The Japanese yen fell after the Bank of Japan’s decision to keep the ultra-easy policy