EUR/USD 1.14691
0.055%
Gold 4039.02
-0.525%
Oil 79.266
-0.573%
USD/JPY 162.152
-0.021%
GBP/USD 1.35077
-0.226%
GBP/JPY 219.035
-0.237%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Nasdaq 100 futures extended their losses to 0.9%. S&P 500 futures fell 0.3%.On July 16th, Federated Hermes fund manager Karen Manna stated in a report that the firm continues to believe the Federal Reserve will remain largely on hold, while inflation remains one of the most difficult macroeconomic variables to predict. She noted that the shift from the low-inflation environment following the 2008-09 financial crisis to the post-pandemic surge in inflation was driven by supply chain disruptions, changing consumption patterns, and labor market imbalances. While many of these distortions have subsided, a host of new variables continue to cloud the inflation outlook. These include tariffs implemented last year, the period of reduced economic visibility before and after last falls government shutdown, high energy prices, and substantial capital expenditures related to artificial intelligence. "The result may be that the inflation pullback will be more uneven and phased than markets have experienced in previous cycles, reinforcing the Feds cautious and data-driven approach."On July 16th, Deutsche Bank analyst Sanjay Raja stated in a report that British Prime Minister Starmer will hand over a significantly improved British economy to his successor, Burnham. Data shows that the UKs GDP grew by 0.1% month-on-month in May, with a cumulative growth of 0.7% in the three months to May. Raja stated that based on the second-quarter economic performance, the UK is likely to continue to rank among the top G7 countries, or at least maintain a leading position. Looking ahead, he believes that the continued energy shock caused by the Iran war and geopolitical uncertainties may slow the UKs economic growth momentum. However, Raja noted that despite Englands defeat in the World Cup on Wednesday, the extended pub hours could still provide a brief boost to the UKs July GDP.On July 16th, Thomas Watts, an analyst at Julius Baer Bank, stated in a report that the latest UK economic growth data reflects the true state of the UK economy over the past two years – “There has been growth, but it has been hard-won and unevenly distributed.” He noted that while UK GDP grew by 0.1% month-on-month in May, this figure is somewhat “beautified.” Watts pointed out that the service sector was the only major driver of economic growth, growing by 0.3% in May; meanwhile, industrial production and construction both contracted. He stated that this serves as a reminder to the market that while the UK economy is still moving slowly, business confidence remains fragile. However, compared to the monthly data, the overall economic growth trend is more positive. In the three months to May, UK GDP grew by 0.7%. Watts added that the candidate who will succeed Reeves as Chancellor of the Exchequer (currently widely expected to be Shabana Mahmoud) should carefully manage this hard-won growth advantage.According to a Reuters poll, 52 out of 74 economists expect the European Central Bank to raise interest rates again in 2026.

Gold Price Prediction: The XAU/USD pair flirts with a two-week high below $1,800 ahead of US PCE Inflation

Alina Haynes

Dec 01, 2022 15:03

 205.png

 

Gold price (XAU/USD) oscillates near a two-week high in the vicinity of $1,780 on Thursday morning as buyers await critical US inflation data. Consequently, during the three-day upswing, the price of bullion advances to within a few minutes of the previous multi-day high.

 

Notably, dovish statements from Federal Reserve (Fed) officials, particularly Chairman Jerome Powell, combined with weaker US employment-related data to drive the Gold price higher the day before. In the same vein, the virus-driven activity limitations in China have loosened as the dragon kingdom reported three consecutive days of dropping daily infections after setting a new record high.

 

However, a recent increase in US inflation expectations, as indicated by the 10-year and 5-year breakeven inflation rates as reported by the St. Louis Federal Reserve (FRED) data, should have also investigated the metal's recent upward movement. Additionally challenging the XAU/USD bulls could be Jake Sullivan's pessimistic views, which signal that the Sino-American optimists face new obstacles. "The United States views China as a growing strategic danger," the official stated.

 

As a reflection of the market's sentiment, S&P 500 Futures post modest gains, while Asia-Pacific equities follow Wall Street's upward trend. In addition, US 10-year Treasury bond yields continue under pressure around 3.62 percent a day after hitting a two-month low.

 

Janet Yellen, secretary of the US Treasury, has stated that the US economy will likely be able to accomplish a so-called "soft landing," in which inflation decreases without triggering a severe recession. Gold buyers remain optimistic as they await the Fed's favored inflation indicator, the US Core Personal Consumption Expenditure (PCE) Price Index for October, which is anticipated to be 5.0% YoY versus 5.1% before.

 

In addition, the US ISM Manufacturing PMI for November, which is anticipated to be 49.8 compared to 50.2 in October, as well as news about China and comments from the Fed's second-tier policymakers will be crucial.

Suggestion