U.S. Treasury Yields Inch Up; Investors Eye Fed Meeting
U.S. Treasury yields edge higher as investors await economic data and the Federal Reserve’s meeting, seeking guidance on interest rates amid inflation concerns. Market expectations for rate cuts have shifted from June to September due to persistent inflation and a resilient economy. Recent data showed the personal consumption expenditures price index above expectations. Investors await consumer confidence and labor market data this week, along with euro zone GDP and inflation figures.
Gold Prices Set for Third Monthly Gain
Despite a Tuesday dip driven by a firmer dollar ahead of the Federal Reserve’s meeting, gold prices are on track for a third consecutive monthly rise. The dollar index’s 0.3% uptick early Monday has made dollar-priced bullion less appealing internationally. Analysts attribute recent gold movements to factors like a stronger dollar, higher yields, and easing geopolitical tensions. This week’s focus lies on the Fed’s meeting and Friday’s non-farm payrolls data, with expectations for a steady interest rate.
Oil Slips as Ceasefire Talks Ease Middle East Concerns
Oil prices dip as Israel-Hamas talks calm regional tensions. Front-month contracts dropped over 1% Monday. Hamas negotiators head back to consult after ceasefire proposal. Yemen’s Houthis target maritime traffic, supporting prices. Investors eye Fed’s May 1 policy review amid inflation concerns. Some anticipate potential interest rate hikes due to resilient labor market and inflation.
