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Price of Gold and Oil: Price of Gold: Interest Fears Cause Negative Start to Week | news

by Jrg Bernhard

Investors fear that the US Federal Reserve will abide by its restrictions monetary policy – longer than expected by many capital market experts. One will apply next Wednesday rate increase 50 basis points is already a foregone conclusion and at the next meeting there is a risk that another XXL interest rate hike could stave off high inflation. This would then have led to sharp increases in interest rates three times in a row. In the euro zone On the other hand, there are still penalty interest rates for bank deposits with the ECB and zero percent key interest rates. Compared to stocks and cryptocurrencies, it cannot be said that gold as a hedge against the crisis has achieved high price increases, but at least it has some degree of relative strength or resilience.

On Monday morning, the price of gold presented itself with weaker prices. At around 8:10 am (CEST), the most actively traded gold futures (August) were down 8.90 to $ 1,866.60 per troy ounce.

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Rohl: Negative week start

On Monday, a Chinese government official warned of a “violent” outbreak of new corona infections in Beijing, which gave markets a very bad start to the week. As a result, speculations about a significant increase in Chinese oil demand have been silenced for the time being. Growing risk aversion on international financial markets has led to further pressure to sell fossil fuels. Highly volatile commodity is often avoided in such market phases.

On Monday morning, the price of oil showed up with falling prices. Around 8:10 am ET, the closest WTI futures fell 2.17 to $ 118.50, while its Brent counterpart fell 2.14 to $ 119.87.

Financeen.net editorial staff

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