Gold prices climbed to $2,029 an ounce before falling back to $2,108, continuing the bullish trend for a second straight day as the US dollar loses ground against other currencies and investors focus on key inflation data in the US expected today to get clues about the Federal Reserve’s next moves on rate hikes. The precious metal travels to the highest levels of the last 13 months due to the uncertainty on the decisions of the central banks on the rate hike to counter the out-of-control inflation. In this context, traders choose safe-haven assets par excellence to shelter their investments. Meanwhile, Philadelphia Fed Bank chairman Patrick Harker said he believes the end of rate hikes could be near. Money markets are pricing in a roughly 74% probability that the US central bank will hike rates by 25 basis points in May, while several rate cuts are also expected from as early as July through the end of the year. Meanwhile, the International Monetary Fund saw global growth down to 2.8% this year and 3% in 2024. The new figures are a 0.1 percentage point cut for both this year and next. The IMF added that pressures in the banking sector have dissipated in recent weeks, but have worsened the general economic picture.
Downhill gas
The price of natural gas in Europe is falling, with demand remaining weak and temperatures set to rise. Furthermore, storage is well above seasonal levels at 55.6% in the EU and 64% in Germany. In the first trades at the TTF reference hub, futures on the May contract change hands at 43.55 euros per megawatt hour (-0.33%).
Spread in rialzo
The spread between Btp and Bund widens slightly at the start of the day to 186.6 basis points from 185.7 at Tuesday’s close. The yield on the Italian 10-year bond is barely moved at 4.15% following the government’s go-ahead for the Def, the economics and finance document which allocates 3 billion to cut the tax wedge.
Be careful in Piazza Affari
Opening of the session cautious on parity for Piazza Affari, with the Ftse Mib up by 0.03% to 27,533.43 points. Iveco (+1.18%), Enel (+1.03%), Interpump (+0.96%) and Prysmian (+0.94%) are off to a good start. Sales on Stm (-1.4%), Leonardo (-0.7%), Campari (-0.48%) and Ferrari (-0.48%). Yesterday the index recorded a marked rise of 1.15%, with widespread increases for Saipem (+3.32%), Mps (+3.33%), Stellantis (+3.09%) and Interpump (+ 2.98%). Among the main decreases, however, the shares of Inwit (-0.72%), Terna (-0.93%), Snam (-0.54%) and Campari (-0.17%).
Stable fuels
Calm falls on fuel prices. National averages substantially stable, no movement to report on the recommended price lists of the major brands. The price of diesel is decreasing, that of petrol is unchanged. These are the averages of the prices applied communicated by the managers to the Price Observatory of the Ministry of Economic Development and elaborated by the Staffetta, recorded at 8 am yesterday morning on about 18,000 plants: self-service petrol at 1.883 euro/litre (+1 thousandth, companies 1.885 , white pumps 1.877), diesel at 1.772 euro/litre (unchanged, companies 1.776, white pumps 1.760). Petrol served at 2.018 euros/litre (+1, companies 2.059, white pumps 1.936), diesel at 1.912 euros/litre (unchanged, companies 1.956, white pumps 1.822). LPG served at 0.783 euro/litre (-1, companies 0.792, white pumps 0.773), methane served at 1.663 euro/kg (-2, companies 1.662, white pumps 1.665), LNG 1.560 euro/kg (-4, companies 1.561 euro /kg, white pumps 1,560 euro/kg). These are the prices on the motorways: self-service petrol 1.947 euro/litre (served 2.208), self-service diesel 1.854 euro/litre (served 2.126), LPG 0.885 euro/litre, methane 1.702 euro/kg, LNG 1.561 euro/kg.