top of page

Title: Gold Up, But Set for Worst Month in Seven Over Fed Concerns

  • Writer: analysiswatch
    analysiswatch
  • Apr 29, 2022
  • 2 min read

Apr 29, 2022 01:22AM ET


By: AnalysisWatch


Gold prices rose Friday morning in Asia as worrisome U.S. GDP data drove some investors into the safe haven. However, the yellow metal faces its biggest monthly decline since September 2021 as the U.S. Federal Reserve is widely expected to aggressively raise interest rates when it makes its decision next week.


Gold futures were up 0.87% at $1,907.70 an ounce by 1:16 AM ET (5:16 AM GMT), but are down about 2% so far in April 2022.


A U.S. GDP that contracted 1.4% in the first quarter of 2022 could ease pressure on the Federal Reserve (Fed) to tighten monetary policy as aggressively as it has hinted, rhetoric that has pressured gold prices in recent weeks, DailyFX currency strategist Ilya Spivak told Reuters.


"This has given gold a bit of a lifeline and set the dollar back a bit. However, I don't expect these moves to continue, "Spivak added.


Fed policymakers agree that they want to accelerate the pace of rate hikes in 2022. However, they have yet to reach a consensus on how fast the pace should be to avoid an economic recession.


Gold prices, however, were on the verge of their biggest monthly decline since September 2021, as both the dollar and 10-year U.S. Treasury bond yields have risen so far in April. The dollar, which typically moves inversely to gold, was down on Friday but recovered from a 20-year high it hit against rival currencies in the previous session.


The freight train, also known as the U.S. dollar, is going to have to slow down at some point. And that could be positive for gold when it does, "Matt Simpson, senior market analyst at City Index, said in a note.


Among other precious metals, silver gained 0.1% and palladium 0.5%, while platinum fell 0.5%. Monthly declines were expected for all three metals.

Comments


2b94f773-a237-4da7-a599-6b42314ed9e6.png

Risk Disclosure: AnalysisWatch will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.
AnalysisWatch would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore AnalysisWatch doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.

bottom of page