FxWirePro: Daily Commodity Tracker - 21st March, 2022 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
The U.S treasury bonds modestly firmer on Friday after reading weaker than expected industrial production figures. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, moved down 0.36 pct to 1.774 pct and the yield on the 3-year Treasury bond dipped 0.27 pct to 0.909 pct by 1350 GMT.
The industrial production plunged 0.6 pct m/m in March, against market expectation of 0.1 pct m/m fall, from down 0.5 pct in February. Moreover, manufacturing output declined 0.3 pct m/m (consensus was for 0.1 pct m/m), from prior 0.1% (revised to -0.1 pct).
Yesterday, the United States March consumer price index marginally rose 0.1 pct m/m, missing market consensus of 0.2 pct m/m increase, from down 0.2 pct in February. Similarly, core-CPI (excluding food and energy) grew 0.1 pct m/m, also lower than the market projection of 0.2 pct m/m. On annually basis, consumer price index inched 0.9 pct, lower than the market expectation of 1.1 pct, as compared to 1.0 pct in the previous month. Core-CPI rose 2.2 pct (consensus was for 2.3%), from prior 2.3 pct in February. On the other hand, initial jobless claims fell to lowest since 1973 by 14K to 253K in the week ended Apr 8, as compared to market expectation of 270K.
After reading these disappointing data, market will no more speculate any early hike from Federal Reserve in its up-coming policy meeting. Nevertheless, we continue to see a more careful, wait and see approach to continue being employed by the Fed likely to materialize in higher rates come the June FOMC meeting (still delivering only 50bps of additional tightening over the course of 2016).
Also, the Federal Reserve Chair Yellen said that there is a great deal of uncertainty over interest rate hike and therefore, she favours a cautious approach.
Meanwhile, the investors now focus on Doha, Qatar meeting on Sunday, 17th April at Doha, where oil rich countries are expected to conclude a freeze on the levels of crude oil productions.
