Skip to content Skip to footer

Rising Gas Prices Contribute to Inflation, ECB Announcement & Gold Prices Move Back Above $2,000

Contents

U.S. indices lower, as inflation rises AGAIN!

Indices in the United States were lower on Thursday, as data showed that consumer prices had once again risen.

Figures from the Labor Department showed that its consumer price index had risen by 0.8% in February, following a gain of 0.6% the month prior.


source: tradingeconomics.com

Following a 0.8% decline in gasoline prices in January, last month saw a 6.6% increase, which was the main factor to the rise in CPI.

CPI is now up 7.9% on an annualised basis, which is the biggest year-on-year gain in consumer prices since 1982.

At the close, the NASDAQ was 0.95% lower, with the S&P 500 falling 0.43%.

ECB announces end to bond buying programme

On Thursday, the ECB announced that it would be winding down its asset purchasing programme as market conditions continue to change.

In a statement following the announcement, the bank said that “the Governing Council will conclude net purchases under the APP in the third quarter,”

💡 Where are inflation levels at
Last month, the annual inflation rate in the eurozone rose to 5.8 percent, up from 5.1 percent the previous month. On Thursday, the central bank raised its projections for inflation for the next three years, predicting that annual inflation for 2022 would be 5.1 percent, nearly double the forecast of 2.6 percent three months ago. Inflation is forecast to be 2.1 percent in 2023, just above the central bank’s target, and 1.9 percent in 2024.

The bank’s President Christine Lagarde who has been reluctant to hike rates, however, took the action to alter QE as a result of the war in Ukraine.

She stated, “The Russia-Ukraine war will have a material impact on economic activity and inflation through higher energy and commodity prices, the disruption of international commerce and weaker confidence”.

Germany’s DAX 30 closed 2.93% lower on the news.

Gold moves back above $2,000, as Russia/Ukraine peace talks fail

Gold prices continued to hover around the $2,000 level on Thursday, as peace talks between Russia and Ukraine reportedly failed.

Talks between the two nations have been ongoing in recent days, prior to the airstrike on a Ukrainian maternity unit, which the Russian’s denied.

Speaking today, Ukraine Foreign Minister Dmytro Kuleb stated that, “Unfortunately, I can confirm that the Russian leadership, including Minister Lavrov, live in their own reality”

He added that, “In our talks, behind closed doors and in the absence of the media, he told me looking in my eyes that the pictures of pregnant women being taken from under the rubble of the maternity house are fake, that they hit the maternity house as a military target because the Russian military was absolutely sure that it was under the control of Ukrainian army”.

After falling by almost $70 yesterday, to a low of $1,975, XAUUSD is now trading at $1,997 with Comex Gold at $2,001.

“I have found that when the market’s going down, and you buy funds wisely, at some point in the future, you will be happy. You won’t get there by reading. Now is the time to buy.”

–Peter Lynch.

Eliman Dambell

Senior Market Analyst

Tradeview Ltd. is not a portfolio manager or an investment advisor. This Market Report is for informational purposes only. Any statements made or opinions voiced in this Market Report do not constitute investment advice. The Tradeview Ltd. Market Report does not constitute a solicitation to buy or sell in the financial markets. Although the information contained in the Market Report comes from trusted sources, Tradeview Ltd. is not responsible for guaranteeing the accuracy, timeliness, completeness, or fitness of such sources. Tradeview Ltd. shall not be responsible for and disclaims all liability for any losses which may be suffered from access and use of the contents of the Tradeview Ltd. Market Report. Trading any financial instrument on margin, using leverage or otherwise involves considerable risk. Therefore, before deciding to participate in any style of trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney, accountant or other professional upon whom you rely for guidance as to the appropriateness of an investment in any style of trading is recommended.

Tradeview Ltd.

Is licensed to carry on securities investment business and is regulated by the Cayman Islands Monetary Authority (CIMA) as a full securities broker-dealer. Tradeview conducts business pursuant to the Cayman Islands Securities Investment Business Law (SIBL) and its activities fall under the direct supervision of the Investments and Securities Division of CIMA.
Headquarters: 4th Floor Harbour Place 103 South Church St, Georgetown, Grand Cayman, Cayman Islands KY1-1002, BWI.
Website: www.tradeviewforex.com

TVM Global Ltd.

Is licensed and regulated by the Labuan Financial Services Authority (FSA) as a Money Broker, registration number LL15870 licensed to facilitate transactions in foreign exchange pursuant to Labuan Financial Services and Securities Act 2010, the Labuan Companies Act 1990 and the Labuan Business Activity Tax Act 1990.
Headquarters: International Business Financial Centre at Office 5, Jamie Business Center I, Unit F10, First Floor, Paragon Labuan, Jalan Mustapha, 87000 Labuan F.T.
Website: www.tvmgloballtd.com

Tradeview Europe Ltd.

Is licensed as a Category 2 Investment Service Company and is regulated by the Malta Financial Services Authority (MFSA). The Malta Financial Services Authority (MFSA) is the single regulator for financial services in Malta. MFSA is a fully autonomous public institution and reports to Parliament on an annual basis. The MFSA is a member of the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the International Organization of Securities Commissions (IOSCO) and is a signatory of the Multilateral Memorandum of Understanding with other European regulatory Institutions. Tradeview is authorized to provide financial services across multiple asset classes and is passported in the EU/EEA under MiFID II (EU Markets in Financial Instruments Directive).
Headquarters: 157 Archbishops Street, Valletta VLT Malta 1440.
Website: www.tradeview.eu

Tradeview Financial Markets S.A.C.

Is authorized to conduct business pursuant to and in compliance with the General Law of Companies (LGS) promulgated by the government of Peru. Tradeview Financial Markets S.A.C is registered with the National Superintendence of Public Registries (SUNARP), company number 13089531. Tradeview Financial Markets S.A.C provides financial services in selected OTC derivative markets in compliance with all applicable government regulations.
Headquarters: Los Mirtos 239 Urb. San Eugenio, Lince, Lima, Perú.
Website: www.tradeviewlatam.com