Gold prices fluctuated wildly this week! The outcome of debt ceiling negotiations remains the market focus. Gold awaits new signals.
First Gold Network May 26: This week, spot gold prices have been volatile, with any market fluctuation causing price changes. The Federal Reserve is debating whether to continue raising interest rates, with no clear signal yet. On the debt crisis, after rounds of negotiations, informed sources say the two parties are close to a deal, and as Biden said, there will be no default. Specific details have not yet been released. Geopolitically, a ceasefire agreement was overturned in less than a day, and conflict resumed in Sudan. ACY Securities chief economist Clifford Bennett said the market generally expects the debt crisis to be resolved, and the Fed will generally continue to tighten monetary policy, which is expected to put some downward pressure on gold. But Bennett added: "Given the debt ceiling crisis (even with a solution) and the ongoing banking crisis, the Fed may indeed pause rate hikes at the next meeting, and they should. Some investors may be buying on dips." As of press time, spot gold is trading at $1952.37 an ounce. Further interest rate hikes remain controversial The minutes of the Federal Reserve's May meeting, released on May 24, showed that Fed officials unanimously agreed to raise interest rates this month, but disagreed on whether further rate hikes were necessary. According to the Wall Street Journal, the latest minutes show that some officials noted that if economic developments meet their current expectations, further increases in policy interest rates may not be necessary after this meeting. However, some officials also believe that further tightening of policy may be necessary at future meetings, as they expect the pace of inflation returning to the 2% target level to remain very slow. The minutes also noted that almost all Fed officials believe that the probability of slower economic growth and increased unemployment has increased following the recent bank failures. However, the Fed still insists that it does not plan to cut interest rates this year. US parties may be close to agreeing on raising the debt ceiling US sources told Reuters on the 25th that President Biden and House Speaker Kevin McCarthy are close to reaching an agreement to raise the federal debt ceiling for the next two years and set a cap on most federal spending. According to Reuters, citing a senior Republican congressman, an agreement is expected to be reached on the 26th. The White House said Biden and McCarthy each appointed negotiators to hold an online meeting on the 25th. An anonymous source said an agreement has not yet been finalized. Both sides agreed to increase the federal government's discretionary spending on military and veterans affairs, and maintain non-defense discretionary spending at current levels. In addition, the White House is considering reducing the budget increase for recruiting more auditors for the Internal Revenue Service and taxing the wealthy. A US government official explained that the IRS budget increase plan is still under discussion, and even if the funding is small, it will ensure the direction of Biden's priority policies. Conflict resumes! Both sides in the Sudanese conflict use heavy weapons The Sudanese Armed Forces and the Rapid Support Forces signed a seven-day ceasefire agreement in Jeddah, Saudi Arabia on May 20, which came into effect on the 22nd. However, reports indicate that the armed conflict continues, with both sides using heavy weapons and accusing each other of violating the agreement. On the 25th, the Sudanese Armed Forces and the Rapid Support Forces continued fierce fighting in parts of Khartoum State, including the capital Khartoum, using fighter jets, artillery and other heavy weapons. Fighting was particularly intense in western Omdurman. The Sudanese Armed Forces and the Rapid Support Forces signed a temporary ceasefire agreement in Jeddah, a port city on the Red Sea coast of Saudi Arabia, on May 20, for a week. The agreement officially came into effect at 21:45 local time on the 22nd. However, since the night of the 23rd, both sides have clashed again and accused each other of violating the agreement. The Sudanese army said that the Rapid Support Forces attacked the mint, the army aviation base and several cities west of Khartoum. The Rapid Support Forces said that the Sudanese army launched air strikes, shelling and ground offensives against them, forcing them to take self-defense measures.
Time:
2023-05-27 09:45
First Gold Gold Network May 26 news This week Spot gold price The main feature is ups and downs, and any market fluctuations will cause Gold price Fluctuations.
On the Federal Reserve side, the issue of whether to continue raising interest rates has been debated endlessly within the Federal Reserve, and there is still no clear signal.
On the debt crisis, after rounds of negotiations, informed sources said that the two parties are finally close to reaching an agreement, and as Biden said, there will definitely be no default, but the specific details have not yet been announced.
On the geopolitical situation, the ceasefire agreement was overturned in less than a day, and conflicts broke out again in Sudan.
Clifford Bennett, chief economist at ACY Securities, said that the market generally expects the debt crisis to be resolved, and the Federal Reserve will generally continue to tighten monetary policy, which is expected to put some downward pressure on gold.
But Bennett added: "Given the debt ceiling crisis (even with a solution) and the ongoing banking crisis, the Fed may indeed pause rate hikes at the next meeting, and they should do so, some investors may be buying on dips."
As of press time, Spot gold The price is reported at $1952.37 per ounce.
Further interest rate hikes remain controversial
The minutes of the Federal Reserve's May meeting, released on May 24, local time, showed that Fed officials unanimously agreed to raise interest rates this month, but there were disagreements on whether further interest rate hikes were necessary.
According to the Wall Street Journal, the latest minutes show that some officials pointed out that if economic developments meet their current expectations, it may not be necessary to further raise policy interest rates after this meeting.
However, some officials also believe that it may be necessary to further tighten policy at future meetings, as they expect the progress of inflation returning to the 2% target level to remain very slow.
The minutes also pointed out that almost all Fed officials believe that the probability of economic slowdown and increased unemployment has increased after the recent bank failures. However, the Fed still insists that it does not plan to cut interest rates this year.
US bipartisan parties may be close to agreeing to raise the debt ceiling
US insiders told Reuters on the 25th that President Biden's Democratic Party and House Speaker Kevin McCarthy's Republican Party are close to reaching an agreement to raise the federal government's debt ceiling for the next two years and set an upper limit for most federal fiscal spending.
According to Reuters, citing a senior Republican congressman, an agreement is expected to be reached on the 26th.
The White House said that Biden and McCarthy each appointed negotiators to hold an online meeting on the 25th. An anonymous insider said that the agreement has not yet been finalized. Both sides agreed to increase the federal government's discretionary spending on military and veterans affairs, and maintain non-defense discretionary spending at the current level.
In addition, the White House is considering reducing the budget increase for recruiting more auditors for the Internal Revenue Service and taxing the wealthy. A US government official explained that the IRS budget increase plan is still under discussion, and even if the funding is small, it will ensure the direction of Biden's priority policies.
Conflict resumes! Both sides of the Sudanese conflict use heavy weapons
The Sudanese armed forces and the Rapid Support Forces, the two sides in the Sudanese armed conflict, signed a seven-day ceasefire agreement in Jeddah, Saudi Arabia on the 20th of this month, which came into effect on the 22nd. However, reports indicate that the armed conflict is still ongoing, both sides are using heavy weapons, and are accusing each other of violating the agreement.
On the 25th local time, the two sides of the Sudanese armed conflict—the Sudanese armed forces and the Rapid Support Forces—continued fierce fighting in parts of Khartoum State, where the capital Khartoum is located, using fighter jets, artillery, and other heavy weapons. The fighting was particularly intense in the western part of Omdurman.
The Sudanese armed forces and the Rapid Support Forces signed a temporary ceasefire agreement in Jeddah, a port city on the Red Sea in Saudi Arabia, on the 20th of this month, for a week. The agreement officially came into effect at 21:45 local time on the 22nd. However, since the night of the 23rd, the two sides have clashed again and accused each other of violating the agreement. The Sudanese armed forces said that the Rapid Support Forces attacked the mint, the army aviation base, and several cities west of Khartoum. The Rapid Support Forces said that the Sudanese armed forces launched air strikes, shelling, and ground offensives against them, forcing them to take self-defense actions.
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Although gold prices rose this week, market volatility has clearly increased. While the US-UK agreement is symbolic, its content is limited and insufficient to alleviate concerns about a global economic slowdown. Therefore, gold prices will continue to fluctuate between safe havens and policy signals, closely monitoring the Federal Reserve's interest rate expectations and global trade sentiment.