central bank tightening, keeping investors leaning towards safety assets. At the time of writing, XAU/USD is trading at $1929 a troy ounce.
Market mood is fluctuating, though of late improved. European equities closed the session in the green, while its North American counterparts are recording gains. The greenback holds its reins, with theabove 98.19 up in the day 0.22%, a headwind for the non-yielding metal, despite that US Treasury yields are falling.
Russia-Ukraine peace talks continue, though hostilities remain. Given mixed signals from both sides, discussions appear to be stuck on a mid-point with no advancement. Although reports from Russia said that Russia – Ukraine’s posture regarding neutrality and not joining NATO are closely aligned, reports from Ukraine said that are intended to provoke tension in media, as Ukraine’s stance of a ceasefire, withdrawal of troops, and strong security guarantees are not negotiable.
Elsewhere, in the middle of the week, the Federal Reserve hiked rates 25 basis points with an 8-1 vote, with St. Louis Fed President Bullard being the dissenter. On Friday, Bullard said that he wanted the US central bank to implement a balance-sheet reduction plan while recommending the FOMC to “try to achieve a level of policy rate above 3% this year.
Continuing the Fed speaking parade, Minnesota Fed’s Kashkari commented that he sees a neutral rate at 2%. If inflation persists, the US central bank would have to raise rates above neutral. Regarding the Quantitative Tightening he expected the Fed to tighten at double of the pace of previously reduction.featured Existing Home Sales for February came at 6.02M lower than the 6.1M foreseen, while the Consumer Board Leading Index rose by 0.3%, higher than the 0.2% estimated.