Head of “BDSwiss” in Al-Arabiya: liquidity begins to shift from these securities to metals

BDSwiss Middle East CEO Daniel Taqi El-Din said US job numbers and US Federal Reserve meeting minutes will affect the market.

He added in an interview with “Al-Arabiya”, that the Fed’s preferred US inflation index, which recorded a high level, is the highest in 31 years, while softness in dealing with economic numbers was the headline of the Fed’s minutes, with its hint of accelerating the pace of the program to reduce asset purchases due to inflationary pressures and the recovery from unemployment.

He pointed out that the market has started to more than double to raise interest rates next year, which gives the US dollar a boost.

He explained that there were some drops in gold because the strength of the dollar was greater than the strength of the demand for gold, but historically gold is the best hedge against inflationary times and liquidity has started to shift from more sensitive stocks to money. monetary policy change to metals, including gold.

Daniel Taqi El-Din explained that the rise of gold with a strong price in dollars indicates the need for investors to obtain yields and diversify risks, rather than monetary policy sensitive securities, because the Fed can accelerate the pace of reduction in purchases of asset, and the tightening may be quicker than agreed in precedence.

Minutes from the latest Federal Reserve meeting, which took place on the second and third of this month, showed officials are open to adjusting asset purchases and increasing the target range for interest rates to a faster pace than expected.

After the meeting, inflation figures worsened, as the Ministry of Commerce data for October showed a 5% year-on-year increase in inflation, recording the highest inflation rate since 1990.

Deutsche Bank predicted bank The pace of easing of the Fed’s accommodative policy accelerated during the December meeting.

The Federal Reserve had kept interest rates close to zero at the November meeting and announced the beginning of the reduction in the pace of bond purchases worth $ 120 billion per month as part of the program launched last year, with the aim of completing the process by mid-2022 .