Fears that the US Federal Reserve might bring the key rate hikes ahead of time prompted investors to grab the dollar. In return, the euro is losing a lot.
The price of gold rose significantly on Wednesday afternoon after the US inflation rate was published. The price of an ounce of the precious metal soared and reached $ 1,850, a daily plus of one percent. US consumer prices rose faster-than-expected in October, adding to the attractiveness of gold as a hedge against inflation for investors. Consumer prices rose by 6.2 percent compared to the same month last year.
Investors also stocked up on the US currency as speculation flared up about an early rate hike by the US Federal Reserve. In return, the euro fell by 1.1 US cents to a year-and-a-half-year low of 1.1481 dollars and was therefore unable to maintain the mark of 1.15 dollars. Inflation is thus moving even further away from the medium-term target of the US Federal Reserve, which is two percent. “In view of these figures, it is becoming increasingly difficult for the Fed to attribute the acceleration in inflation solely to special and catch-up effects,” commented Dirk Chlench, economist at Landesbank Baden-Württemberg. “By the end of next year at the latest, the US Federal Reserve is likely to be forced to abandon its hesitant stance and initiate a turnaround in key interest rates.” More decisive action by the Fed would tend to support the dollar, after all, no departure from the very loose monetary policy is expected in the euro zone for the foreseeable future.
Oil prices gave up their previous day’s gains. Market observers referred to a report by the US energy agency EIA. Unlike some observers, statisticians see no permanent bottleneck on the oil market. Rather, they expect an oversupply as early as the beginning of next year. The prices are therefore likely to decline as early as December. A barrel of US WTI light oil fell 3.4 percent in price to $ 81.32.