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U.S. Treasury Secretary Bessant: The U.S. economy will grow by 3% after the conflict with Iran.U.S. Treasury Secretary Bessant: Oil prices will enter a period of lower levels in the medium term following the end of the conflict.US Treasury Secretary Bessant: The Federal Reserve has a long way to go before returning to quantitative easing.On March 13, Irans Nokyo News Agency reported on March 12 that the Iranian Islamic Revolutionary Guard Corps (IRGC) announced that its navy had launched a fierce attack on the U.S. Navys Fifth Fleet base in Bahrain. According to a statement released by the IRGC, the navy conducted two rounds of operations that morning, using missiles and drones to launch a heavy attack on the U.S. Navys Fifth Fleet base in Salman, Bahrain. The bases anti-drone systems, unmanned surface vessel center, logistics and equipment center, fuel storage facilities, and areas where U.S. soldiers were concentrated were all subjected to "precision strikes."On March 13, Adobe (ADBE.O) announced that its CEO, Shantanu Narayen, will step down as head of the creative software giant. This move comes amid deep market skepticism about the companys ability to thrive in the age of artificial intelligence. The company also provided its sales forecast for the current quarter, which, while slightly above expectations, failed to alleviate investor concerns that the software maker is being overtaken by new competitors. The company said on Thursday that revenue for the quarter ending in May would be between $6.43 billion and $6.48 billion. Analysts average expectation was $6.43 billion. Excluding certain items, earnings per share would be between $5.80 and $5.85, while analysts average expectation was $5.70. Adobe (ADBE.O) shares fell about 6% in after-hours trading.

Forecast for Gold Price: XAU/USD fails to surpass $1,930 as USD Index recovers ahead of Fed policy

Alina Haynes

Feb 01, 2023 15:27

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During the Asian session, the gold price (XAU/USD) failed to reclaim the crucial barrier of $1,930.00, prompting a strong price correction. The precious metal's upward momentum has diminished as the US Dollar Index (DXY) shows signs of recovery after falling to around 101.70. The USD Index is gaining traction as investors become nervous ahead of the Federal Reserve's interest rate announcement (Fed).

 

As Fed chair Jerome Powell is anticipated to significantly slow the pace of interest rate hikes, the Gold price correction appears to be moderate. In the meantime, S&P500 futures have retraced some of Tuesday's gains as investors anticipate that additional Fed rate hikes will heighten recession fears in the United States. Yields on 10-year US Treasuries have fallen below 3.52 percent.

 

In addition to the Fed's monetary policy, the ADP Employment data and ISM Manufacturing PMI will be of the utmost importance. According to the consensus, the US economy added 170,000 new jobs in January, down from the previous estimate of 235,000. While it is anticipated that the Manufacturing PMI will decrease to 48.0 from 48.4, which was announced earlier,

 

For a longer horizon, Reuters reported that the Fed's decision to raise interest rates would limit the price of gold. According to a survey by Reuters, the average price of gold will be $1,852.50 in 2023 and $1,880 in 2024.


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