◂ Event Timeline

May 25, 2023MACROUS

Gold hits 2-month low on US debt talks progress, rate hike bets

Gold fell to a two-month low on May 25 as progress in US debt ceiling talks reduced safe-haven demand. Strong economic data increased expectations of another Federal Reserve rate hike.

WHY IT MATTERS

Expectations of tighter US policy support the dollar and reduce the appeal of commodities priced in dollars, a mild headwind for grain and oilseed prices.

AFFECTSUS Dollar (Broad)▲

SOURCE
reuters.comDeep VakilMay 25, 2023

Price reaction & history

US Dollar (Broad)▲bullishSO FAR1d +0.3%5d -0.4%20d -1.1%

After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.

Oct 12, 2021Money markets ramp up global rate hike bets, add pressure on central banks | Reuters-0.5%
Apr 28, 2022Gold hits lowest level in more than 2 months on lofty dollar, imminent U.S. rate hike+0.1%
Nov 18, 2022Gold falls on Fed rate hike prospects, on track for weekly dip | Reuters-0.5%
Mar 1, 2018Gold slips to two-month low on US rate expectations-0.1%
Oct 25, 2021Dollar rises from one-month low on prospect of higher interest rates | Reuters+0.4%

Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.

US Dollar (Broad) DXY · GP ▸

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