Fears that the US Federal Reserve might announce key rate hikes in advance prompted investors to grab the dollar. In return, the euro loses a lot.
The price of gold rose significantly on Wednesday afternoon after the US inflation rate was released. The price of an ounce of the precious metal soared to $ 1,850, a daily increase of one percent. Consumer prices in the United States rose faster than expected in October, adding to gold’s appeal as an inflation hedge for investors. Consumer prices rose 6.2% compared to the same month last year.
Investors also stocked up on US currency as speculation intensified over an anticipated rate hike by the US Federal Reserve. On the other hand, the euro fell by 1.1 US cents to a year-and-a-half low at 1.1481 dollars and was therefore unable to maintain the 1.15 dollar mark. Inflation is therefore moving further away from the US Federal Reserve’s medium-term target of 2%. “In view of these figures, it is becoming increasingly difficult for the Fed to attribute the acceleration of inflation to special and catch-up effects alone,” commented Dirk Chlench, economist at Landesbank Baden-Württemberg. “By the end of next year at the latest, the US Federal Reserve should be forced to abandon its hesitant position and initiate a reversal of key interest rates. More decisive action by the Fed would tend to support the dollar, after all, no deviations from highly accommodative monetary policy are expected in the eurozone for the foreseeable future.
Oil prices have abandoned their gains from the previous day. Market watchers have referred to a report by the US energy agency EIA. Unlike some observers, statisticians do not see a permanent bottleneck in the oil market. On the contrary, they expect an oversupply from the start of next year. Prices should therefore drop from December. A barrel of US light oil WTI lost 3.4% to 81.32 dollars.