EUR/USD 1.16000
0.039%
Gold 4220.14
1.519%
Oil 59.392
0.687%
USD/JPY 156.145
-0.098%
GBP/USD 1.32418
0.018%
GBP/JPY 206.766
-0.068%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On December 1, Venezuelan Vice President Rodriguez stated on his social media that Venezuela had submitted an official letter signed by President Maduro to the Secretary-General of OPEC and all OPEC and OPEC+ members, accusing the United States of attempting to control Venezuelas largest oil reserves in the world through military intervention.December 1st - A new round of talks between US and Ukrainian delegations regarding the Russia-Ukraine "peace plan" has concluded. US Secretary of State Rubio stated after the talks that the meeting with the Ukrainians was "productive." "We still have more work to do," he said. "We maintain contact with the Russian side at varying levels."On November 30th, OPEC+ stated in a press release that OPEC+ countries agreed at their meeting on Sunday to maintain the group-wide oil production quotas for 2026 and to establish a mechanism to assess the maximum oil production capacity of member countries. The OPEC+ meeting, which accounts for half of the worlds oil production, comes as the United States is working to broker a peace agreement between Russia and Ukraine, and an easing of US sanctions against Russia could increase oil supplies. According to another statement, the eight OPEC+ countries that previously announced additional voluntary production adjustments in April and November 2023—Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman—held an online meeting today to assess the global market situation and outlook. These eight countries reaffirmed their decision of November 2, 2025, to suspend production increases in January, February, and March 2026 due to seasonal factors.OPEC+ representative: OPEC+ has confirmed its plan to suspend production increases in the first quarter of next year.Google (GOOG.O) has postponed the opening of its London “ground-level skyscraper” headquarters.

Forecast for Gold Price: XAU/USD edges lower on a stronger USD and Fed rate rise worries

Alina Haynes

Sep 05, 2022 16:23

截屏2022-06-07 下午5.15.32.png 

 

Gold dips lower on the first trading day of the week, erasing a portion of Friday's substantial gains. The XAU/USD is on the defensive during the early European session, but lacks follow-through selling and has thus far managed to maintain its position above the $1,700 round-figure level.

 

On Monday, the US dollar reaches a fresh 20-year high, which turns out to be a significant factor imposing downward pressure on dollar-denominated gold. Despite Friday's delivery of a mixed US employment data, a growing consensus that the Fed will adhere to its aggressive policy tightening course continues to support the dollar. In fact, the markets are putting in a larger likelihood of a 75-bps rate hike at the September 20-21 FOMC meeting.

 

Recent hawkish remarks by various Fed members reiterated the bets, signaling that interest rates are likely to continue climbing until inflation is much closer to the 2% target. In addition, it is anticipated that the Reserve Bank of Australia, the European Central Bank, and the Bank of England would continue to hike interest rates. This is regarded as an additional component that contributes to the diversion of gold flows away from non-yielding gold.

 

In addition, indications of equities market stability appear to diminish demand for traditional safe-haven gold. However, mounting concerns about a more severe economic crisis should temper any euphoria. This, coupled with relatively low trading volumes due to the Labor Day holiday in the United States, may discourage dealers from taking aggressive wagers on gold. This necessitates vigilance prior to positioning for additional losses.


Suggestion