Gold prices soared immediately after the Federal Reserve announced its interest rate decision. As soon as the FOMC minutes were released, gold, which had been moving cautiously since the beginning of the session, suddenly rose sharply as the market read signals that the era of high interest rates was nearing its end. Within minutes of the announcement, gold prices surged and held steady near their daily highs as new buying inflows from market participants. Generally speaking, the Fed did cut interest rates as expected, but what triggered the gold surge was Jerome Powell's statement, which...
Gold prices consolidated at the start of the Asian session at around $4,228/oz as the market still digested the latest FOMC decision. The Fed cut interest rates, but at the same time signaled that it was unwilling to promise an aggressive easing path next year. For market participants, this was a unique combination: on the one hand, there was support from lower interest rates, on the other, a "strong warning" that the next cut would not be automatic and could be slower than expected. In theory, a Fed rate cut eases short-term financial conditions: borrowing costs are cheaper, bond yields...
Oil extended an advance after the US seizure of a sanctioned tanker off Venezuela heightened geopolitical concerns. West Texas Intermediate rose to near $59 a barrel after advancing as much as 1.4% on Wednesday. Brent crude closed above $62. US forces intercepted and seized the very large crude carrier in a move that will likely deter others from shipping crude from OPEC member Venezuela. Meanwhile, Ukraine attacked a shadow-fleet tanker linked to Russia's oil trade, even as the US pushes for a ceasefire. The increased geopolitical tensions come against a...