gold silver Wagner Gold began November like a lamb but may end like a lion
There is a proverb about the weather in the northern hemisphere as each year winter transitions into spring. The proverb says that “March comes in like a lion and goes out like a lamb”. While the proverb began as a reference to astronomy, referring to the position of the constellations Leo-a lion, and Aries the ram, it eventually evolved into a summation about how typically March is the month when the Winter season ends and Spring begins.
Actions by the Federal Reserve certainly took on an aggressive hawkish stance when on Wednesday of this week the Fed concluded its November FOMC meeting and as expected raised their benchmark rate by 75 basis points for the fourth consecutive time. This takes its fed funds rate to between 375 and 400 basis points. The net result was an extremely volatile day in gold with the most active December contract trading to a high of approximately $1673 a low of $1637.
And it was the rising unemployment rate that was the underlying force that broke the downward momentum of gold and the upward momentum of the U.S. dollar because it spurred the belief that the exceedingly hawkish monetary policy of the Federal Reserve might begin to enter a new slower pace of rate hikes.
This change in market sentiment is reflected in the CME’s FedWatch tool which predicted a 35.2% probability that the Fed’s benchmark rate would be between 425 and 450 basis points one month ago on October 4. Currently, this probability indicator suggests that there is a 61.5% probability that by the end of 2022 benchmark interest rates will be between 4 ¼% and 4 ½%.
المملكة العربية السعودية أحدث الأخبار, المملكة العربية السعودية عناوين
Similar News:يمكنك أيضًا قراءة قصص إخبارية مشابهة لهذه التي قمنا بجمعها من مصادر إخبارية أخرى.
Friday's Charts for Gold, Silver and Platinum and Palladium, November 4Get the Big Picture view on gold, silver and other precious metals markets with Kitco Senior Analyst. With thorough analysis, get a sense of today's market as well as where it may be heading. Be in the lead.
اقرأ أكثر »