Gold hits record as Fed expectations further soften! | MarketTalk: What’s up today? | Swissquote

Show notes

The Federal Reserve (Fed) President Jerome Powell pushed back against the rate cut bets at his speech given in Atlanta last Friday. He is of course playing the card of ‘high for long’ rates to tame inflation, yet he hinted that the Fed will probably not hike rates when it meets this month. Fed rate cut expectations went through the roof when it became clear that the Fed will stay pat again this month. The US 2-year fell to nearly 4.50% on Friday, the 10-year yield tipped a toe below the 4.20% mark. Gold spiked to $2150 per ounce this morning. The S&P500 flirted with the summer peak, the rate sensitive Nasdaq closed a few points below the 16000 and iShares core US REIT ETF jumped nearly 2.70% last Friday.
The SPDR’s energy ETF, on the other hand, barely closed above its 200-DMA, as last week’s OPEC decision to cut the production supply by another 1mbpd and to extend the Saudi cuts into next year barely impressed oil bulls. The barrel of US crude remained aggressively sold near the 200-DMA last week, and we are about to step into the $70/73pb region which should give some support to the market. But with the clear deterioration of the positive trend, and the lack of any apparent boost to the oil market following last week’s OPEC meeting, there is a chance that we will see oil finish the year below the $70pb mark.
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