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The Israeli military has not yet commented on the reports of the Gaza attack.Russian Ministry of Defense: Air defense system shot down 45 Ukrainian drones overnight.Silver prices have hit record highs recently. Data from the Korea Gold Exchange showed that on October 17th, the price of silver reached 2,467 won (approximately 12 yuan) per gram, a year-to-date increase of nearly 70%, exceeding the increase in gold over the same period. This surge in demand for silver among South Korean investors has led to tight market supply. So far this year, major South Korean commercial banks have generated cumulative silver bar sales of 10.4 billion won (approximately 52.08 million yuan), 13 times higher than the same period last year. Due to the shortage of silver bars in the market, South Korean commercial banks and major precious metals sales platforms have announced that they will suspend silver bar sales starting on the 20th of this month.1. October 24th – Federal employees, whether furloughed or working, will miss their first full paycheck, forcing lawmakers to act. They have already missed partial paychecks, placing significant financial strain on over 2 million employees and their families. 2. October 31st – The Trump administration this week deployed $8 billion in unused research and development funds from fiscal year 2025 to ensure 1.3 million active-duty military personnel receive their October 15th paycheck. However, whether this can be done again before Halloween (November 1st) remains uncertain. 3. October 31st and November 5th – Senate clerks will miss their first full paycheck on October 20th (paid on the 5th and 20th of each month). House clerks will miss their paychecks at the end of October (paid at the end of each month) and, if they do, will not receive their paychecks until after Thanksgiving, creating significant financial hardship. 4. November 1st – Open enrollment for the Affordable Care Act. Healthcare is a primary concern for the shutdown, with Democrats aiming to pressure Republicans to reach an agreement on strengthening subsidies for Obamacare before open enrollment begins. 5. November 21 – If the shutdown continues into late November, it could lead to TSA staffing shortages and air traffic control issues for Americans during the busy Thanksgiving travel week. Air traffic control chaos in early 2019 was a key factor in forcing the government to end the longest shutdown in history.On October 19th, local time, Pakistani Deputy Prime Minister and Foreign Minister Dar welcomed the ceasefire agreement reached between Pakistan and Afghanistan in Doha, Qatar, on the evening of the 18th on social media, calling it "the first step in the right direction." Dar also expressed hope that at the next round of meetings hosted by Turkey, a concrete and verifiable monitoring mechanism would be established to address the threat of attacks from Afghanistan into Pakistan. On the same day, Afghan government spokesman Zabiullah Mujahid issued a statement announcing that negotiations between Afghan and Pakistani representatives in Qatar had concluded with the signing of a bilateral agreement. Neither side will take any hostile actions against the other, nor will they support groups that attack the Pakistani government. Both sides will refrain from targeting each others security forces, civilians, or critical infrastructure. A mechanism will be established to review bilateral positions and ensure the effective implementation of the agreement, mediated by an intermediary.

As US NFP steals the spotlight, we expect the XAU/USD to drop to roughly $1,700 in the near future

Daniel Rogers

Aug 29, 2022 14:38

截屏2022-06-07 下午5.14.07.png 

 

After setting a new monthly low of $1,723.44 in the Tokyo session, the gold price (XAU/USD) is now indicating a less confident downward trend. The Federal Reserve (Fed) opted for price stability over growth on Friday at the Jackson Hole Economic Symposium, therefore the precious metal is projected to continue its downward trajectory for some time.

 

The Federal Reserve has little leeway to decrease the pace of its interest rate hikes in August due to signals of inflationary pressures. While economic activities in the United States showed significant slowing down because of decreasing liquidity in the economy. Market veterans anticipated that the Fed would slow the pace at which it was rising interest rates in light of the two factors. To counteract this, the Fed prioritized maintaining price stability.

 

The future of the United States hinges on the information provided by the Nonfarm Payrolls (NFP) report. We anticipate the economic statistics to come in at 290k, which is a decrease from the 528k reported in the previous release. The slowdown in job growth should not be seen as a huge concern by investors. Since the US economy has been at full employment for the past six months, much of the room for new jobs has been eliminated.

 

Gold prices have fallen below the 61.8% Fibonacci retracement level (set at $1,729.35 from the low of $1,680.91 on July 21 to the high of $1,807.93 on August 10) on an hourly time frame. Both the 20-period and the 50-period Exponential Moving Averages (EMAs) are trending downward, adding further filters to the downside at $1,738.08 and $1,745.84, respectively. The Relative Strength Index (RSI) (14) has moved into the negative zone of 20.00-40.00, indicating further declines ahead.