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Fed Day: Gold Price Drops, Microsoft Shares Rise After Earnings Call & Russia Cuts Supply Capacity to Europe

Gold price lower ahead of FOMC meeting

Gold was trading near its support point of $1,720 on Wednesday, as markets were preparing for the latest FOMC meeting.

It is expected that the Federal Reserve will increase interest rates by 75 basis points for the second consecutive month, as a result of rising inflation.

Figures released last week showed that inflation was nearing 10%, which is considerably away from the Fed’s 2% rate target.

Recent action from the Fed has seen the U.S. Dollar strengthened against several G-7 currencies, moving to parity with the Euro last week.

As of writing, XAUUSD is trading at $1,718.14.

Microsoft shares higher, following Q2 earnings

Shares in Microsoft were trading higher on Wednesday, as markets reacted to the company’s earnings call.

Despite both revenue and earnings figures missing expectations, the tech giant saw its share price rise, following its profit forecasts for next year.

The company said it expects revenue of $50.25 billion, which is up from earlier forecasts of $49.75 billion.

Revenue for this quarter however was lower than expected, coming in at $51.87 billion, versus expectations of $52.44 billion.

Earnings also disappointed, coming in at $2.23 per share, less than the expected $2.29 per share.

As of writing, $MSFT is trading 4.79% higher.

Oil prices moving toward $100, as Russia cuts supply capacity to Europe

Oil prices were higher in today’s session as it was reported that Russia had cut the capacity of a major energy supply route into Europe.

It was revealed that physical distribution of Gas via the Nord Stream 1 pipeline fell to 14.4 million kilowatt hours per hour, from around 28 million the day prior.

The operator of the pipeline Gazprom has blamed the reduction in capacity on a scheduled maintenance disruption.

This has seen WTI climb by almost $3 in today’s session, despite U.S. stockpiles of crude dropping by more than expected.

Data from the Energy Information Administration showed that inventories of crude fell by 4.523 million barrels last week.

As of writing, WTI is trading at $97.88 per barrel.

“Learn to take losses. The most important thing in making money is not letting your losses get out of hand.” –

Marty Schwartz.

Eliman Dambell

Senior Market Analyst