Market Bizzz

The market is bracing for additional curbs aimed at Russian fuel products sales set to come into force in February as the European Union (EU) keeps working on more sanctions against Moscow over the invasion of Ukraine.

Elsewhere, the dollar stood cautiously steady ahead of the closely watched U.S. inflation data out later on Thursday, which will provide more clarity on how much inflation in the world’s largest economy has tamed and on the Federal Reserve’s rate-hike path.

Indian gold refiners have nearly stopped imports of gold dore, a semi-pure alloy, as grey market operators offer hefty discounts to market rates and cut into their slender margins, making business a losing proposition, industry officials say.

The oil market has been pulled lower by worries about U.S. interest rate hikes to curb inflation which would trigger a recession and curtail fuel demand, offsetting hopes for fuel demand growth in China, the world’s second largest oil consumer, as it eases COVID-19 curbs and resumes international travel.

Gold is highly sensitive to rising interest rates, as that increase the opportunity cost of holding the non-yielding bullion. Meanwhile, European Central Bank’s governing council member Mario Centeno said on Tuesday the current process of interest rate increases is approaching its end.

Recent comments by other Fed officials have supported the view that the central bank needs to remain aggressive in raising interest rates to control inflation. Fed Governor Michelle Bowman said on Tuesday the bank will have to raise interest rates further to combat high inflation.

Wage growth across the euro zone is expected to be “very strong” over the next few quarters but real wages are still likely to decline given rapid inflation, a European Central Bank Economic Bulletin article argued on Monday.