Free Trial
US TSYS

What Recession?

US TSYS

Eurodollar/SOFR/ Tsy Options Roundup

PIPELINE

Corporate Issuance Over $60B/Wk

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Lower In Asia; Powell MonPol Comments Eyed

GOLD

Gold sits ~$6/oz weaker to print $1,827/oz at typing, operating below Tuesday’s worst levels, and taking it to one-week lows in the process. The move lower comes amidst a fresh bid in the USD (DXY), seeing the latter rising above Tuesday’s best levels in Asia-Pac dealing.

  • To recap, the precious metal closed ~$6/oz lower on Tuesday despite limited downticks in U.S. real yields and the USD (DXY). Debate re: the possibility of a Fed-led recession has continued to do the rounds, possibly lending support to bullion, with Richmond Fed Pres Barkin being the latest on Tuesday to voice support for a possible 75bp rate hike in July.
  • July FOMC dated OIS continue to squarely price in 75bp of tightening for that meeting, with a cumulative ~193bp of tightening priced in for calendar ‘22 - a decline from earlier in the week (as high as >210bp).
  • Looking ahead, focus will be turn to Fed Chair Powell’s comments re: monetary policy to the Senate Banking Committee (1430 BST), where he is expected to provide details on the Fed’s ongoing inflation fight and the corresponding recessionary risks.
  • From a technical perspective, previously outlined support and resistance levels remain intact at $1,787.0/oz (May 16 low) and $1,889.1/oz (trendline resistance from Mar 8 high) respectively.
206 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Gold sits ~$6/oz weaker to print $1,827/oz at typing, operating below Tuesday’s worst levels, and taking it to one-week lows in the process. The move lower comes amidst a fresh bid in the USD (DXY), seeing the latter rising above Tuesday’s best levels in Asia-Pac dealing.

  • To recap, the precious metal closed ~$6/oz lower on Tuesday despite limited downticks in U.S. real yields and the USD (DXY). Debate re: the possibility of a Fed-led recession has continued to do the rounds, possibly lending support to bullion, with Richmond Fed Pres Barkin being the latest on Tuesday to voice support for a possible 75bp rate hike in July.
  • July FOMC dated OIS continue to squarely price in 75bp of tightening for that meeting, with a cumulative ~193bp of tightening priced in for calendar ‘22 - a decline from earlier in the week (as high as >210bp).
  • Looking ahead, focus will be turn to Fed Chair Powell’s comments re: monetary policy to the Senate Banking Committee (1430 BST), where he is expected to provide details on the Fed’s ongoing inflation fight and the corresponding recessionary risks.
  • From a technical perspective, previously outlined support and resistance levels remain intact at $1,787.0/oz (May 16 low) and $1,889.1/oz (trendline resistance from Mar 8 high) respectively.