The new year will be full of uncertainty as the Federal Reserve tries to rotate and tighten its monetary policies. At the same time, the threat of inflation continues to grow, meaning real interest rates will remain low and in negative territory. Commerzbank’s Daniel Briesemann notes that after the FED meeting minutes and ADP data last night, the gold price’s rise at the beginning of the session reversed and was negatively affected. We have compiled Daniel Briesemann’s reviews of the latest developments for the readers of Cryptokoin.com .
“FOMC Minutes ignited and gold pulled back”
It says it is in good standing and 807,000 new jobs were created in December. Stating that this data is almost twice what the Bloomberg consensus expects, the analyst makes the following assessment:
Instead of responding negatively to the data, gold climbed to $ 1,830 for a while due to the depreciation of the dollar. ADP’s figures have not always been a reliable indicator of past official US labor market data. Therefore, it should not be seen as a one-to-one prediction for tomorrow’s data.
According to Daniel Briesemann, the Fed meeting minutes ignited the mood in the evening gold market, causing the gold price to drop to $1,800. The analyst states that the minutes are interpreted as hawkish and points to the possibility of earlier and faster rate hikes thanks to the strengthening USA and high inflation, and explains its effect as follows:
Ten-year US Treasury bonds yields, on the other hand, are at the highest in nine months. It rose to 1.73%, which is its level, and dragged the gold price down.