After falling below the all-important $1,780 support level during the Asian session, the price of gold (XAUUSD) has recovered. The yellow metal's sharp drop on Monday was due to the fact that investors are predicting higher interest rate peaks from the Federal Reserve for the coming year.
The European Central Bank (ECB) will meet again on Thursday to decide on interest rates. In addition to this, the central bank will consider how to wind down 5 trillion euros ($5.3 trillion) in bond holdings, which clearly points to more tightening.
The Bank of Canada (BOC) is likely to have to keep interest rates at or above 4% for most of 2023. This, according to a report from the International Monetary Fund (IMF), will help the BOC cool the economy and tame inflation.
A Bloomberg survey suggests that the Swiss National Bank is set to carry out another interest-rate hike in March, coming on the heels of a rise scheduled for this week.
Major natural gas producers opposed Australia's plan to cap domestic prices. The companies explained that the policy could lead to a supply shortage due to the reduction of new investments.
According to the ECB, eurozone banks need to repay loans from the European Central Bank earlier.
The U.S. Department of Agriculture raised its forecast for global wheat trade. This adjustment was made particularly because of increased exports from the Black Sea region. Last month's agreement extension for safe passage has reduced the recent price increase.
The worsening of UK economic forecasts will make the BOE’s management the most divided in its entire history. The reason for the contention was the level of increase in interest rates. In the future, the bank expects a four-way division.
China is waiting for the U.S. delegation to arrive next week in order to set a stage for Antony Blinken, U.S. Secretary of State. His visit is scheduled for January-February 2023, as reported by the U.S. State Department.
Masayoshi Amamiya and Hiroshi Nakaso, current and former deputy governors of the Bank of Japan, respectively, are considered as possible contenders for the post of the next head of the central bank in April 2023.
