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Gold Drops Ahead of Fed Meeting, Coinbase Set to Layoff 18% of Staff & Oil Prices Hit 10 Month High

Gold falls towards 1-month low, ahead of Fed meeting

Gold prices fell towards a one month low on Tuesday, as markets prepared for tomorrow’s FOMC meeting.

The Federal Reserve will hold its monthly policy meeting on Wednesday, with many expecting the bank to increase rates.

This comes as inflation in the United States rose to 8.6%, which is the highest level consumer prices have hit in over forty years.

In addition to this, data released today also showed that the U.S. PPI has risen, climbing by 0.8% from April to May.

As of writing, XAUUSD is trading at $1,808.

Coinbase to layoff 18% of its staff, as crypto’s crash

As global markets continue to plummet, with crypto prices continuing to decline, Coinbase has opted to reduce its workforce.

Speaking on Tuesday, CEO Brian Armstrong stated that the company will fire 18% of its employees, in order to prepare for the upcoming recession.

Armstrong stated, “We appear to be entering a recession after a 10+ year economic boom. A recession could lead to another crypto winter, and could last for an extended period”.

He added that, “Our employee costs are too high to effectively manage this uncertain market. While we tried our best to get this just right, in this case it is now clear to me that we over-hired”.

$COIN was marginally down as of writing.

Oil prices hit 3-month high

Oil prices rose to a three month high earlier in today’s session, as supply concerns overshadowed the sentiment surrounding a recession.

OPEC and its allies have opted to keep supply levels unchanged, however this may be due to a disruption in the supply chain, rather than a reluctance to increase output.

Libya, an OPEC member, has struggled to meet its current export quota, due to disruptions, which some other states also face.

This, in addition to Europe moving to ban Russian oil, means that demand currently exceeds supply, which may result in energy prices rising even further.

WTI is back below $120 per barrel, following earlier highs. 

“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

-Warren Buffett.

Eliman Dambell

Senior Market Analyst