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Futures News, April 30th: Economies.com analysts latest view: Brent crude oil futures surged in recent intraday trading, breaking through the key resistance level of $109.00, which had previously been our price target. This rally reflects a strong short-term bullish trend, with prices continuing to move along the upward trend line, providing support for current momentum. The bullish bias is further consolidated as prices remain above the 50-day EMA, showing continued dynamic support. However, after prices entered overbought territory, the Relative Strength Index (RSI) has shown initial signs of a bearish crossover, which could limit further upside potential.On April 30, Zhao Leji, Chairman of the Standing Committee of the National Peoples Congress (NPC), presided over the closing meeting of the 22nd session of the 14th NPC Standing Committee. Zhao Leji stated that the session reviewed eight draft laws, passing two of them. The newly formulated Social Assistance Law, adhering to the principles of ensuring basic needs, providing a safety net, addressing emergencies, and ensuring sustainability, is of great significance for strengthening the social safety net, promoting social equity, and maintaining social harmony and stability. The revised Prison Law improves the prison management system, further standardizes and guarantees the correct execution of penalties in prisons, and is conducive to promoting a higher level of peace and rule of law in China. The meeting conducted a second review of the draft Medical Security Law and the Law on the Protection and Quality Improvement of Cultivated Land, and conducted the first review of the draft revisions to the Law on State-Owned Assets of Enterprises, the Agricultural Law, the National Defense Mobilization Law, and the Water Law. Relevant departments should carefully study the relevant opinions and suggestions and revise and improve the drafts. Zhao Leji emphasized that members of the NPC Standing Committee and its special committees, as well as NPC officials, should perform their duties with high quality.Philippine Trade Minister: ASEAN will accelerate free trade agreement negotiations.Hungarian Central Bank Governor Varga: Hopes to avoid a recurrence of high inflation and high inflation expectations.Futures Market News, April 30th: Zhengzhou rapeseed meal futures opened higher but then fluctuated. Canadian canola futures closed higher, with the benchmark contract rising 2.16%, following the upward trend in international crude oil futures. Rapeseed meal spot prices fell slightly. Canadian canola has not yet entered large-scale crushing, but ample supply is expected in the longer term, and downstream purchasing sentiment remains cautious. Attention should be paid to the recovery of demand from aquaculture.

Despite a Solid U.S. Employment Report, Gold Remains Above $1,700 for a Second Week

Aria Thomas

Oct 08, 2022 10:42

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Gold dropped on Friday but still posted its second straight weekly gain, as an upward run in the opening two days of the week helped the bullion longs weather the September U.S. jobs report, which sent the rival dollar soaring.


The gold futures contract for December on the New York Comex declined $11.50, or 0.7%, to $1,709.30 per ounce. Gold for December rose 2.2% for the week, extending the prior week's 1.5% increase.


The spot price of bullion, which is monitored more closely than futures by some dealers, declined $13.54, or 0.8%, to $1,699.08 by 14:00 ET (18:00 GMT).


Sunil Kumar Dixit, chief technical analyst at SKCharts.com, warned that despite the weekly increase, gold's value may continue to decline if the dollar continues to rise and U.S. bond yields accompany it.


If gold's rejection from the $1,730 resistance zone is confirmed by a break below the $1690-$1685 range, bears would have an easy target of $1,560, according to Dixit. This represents the Fibonacci retracement of 50% of the long-term uptrend from $1,046 to $2,073.


The Dollar Index, which compares the U.S. dollar to the euro and four other currencies, increased for a third straight day, reaching a session high of 112.7 and inching closer to 20-year highs reached a week earlier.


The yield on 10-year U.S. Treasury notes reached a one-week high of 3.906%, just missing September 27's 11-year high of 4.019%.


The dollar and bond yields rose after it was announced that U.S. corporations added 263,000 jobs in September, slightly more than what economists had predicted. The unemployment rate in the United States decreased to 3.5% in September from 3.7% in August, offering an ongoing challenge to the Federal Reserve's fight against inflation.


In an effort to battle inflation, 92% of experts anticipate that the central bank will increase interest rates by 75 basis points for the fourth straight time in November.


Rate increases are antagonistic to risk assets, particularly dollar-denominated commodities, because they increase the transaction and acquisition costs for euro and other currency traders.


Investors perceive gold as a viable alternative to the dollar, despite its reputation as a safe haven. Herein lies the problem with gold. As a result of the Federal Reserve's decision to raise interest rates by 300 basis points this year, from a starting point of just 25 basis points, the dollar has been persistently heading toward two-decade highs.


It is widely anticipated that the Fed will raise interest rates by at least 50 basis points in December, bringing the total increase for the year to 425 points.

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