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According to the Wall Street Journal, Accenture also participated in AlphaSenses funding round.According to the Wall Street Journal, JPMorgan Asset Management participated in a funding round for Alphasense, a U.S. financial information and market intelligence platform.June 3 – According to a Reuters poll of economists, the European Central Bank (ECB) will raise its deposit rate to 2.25% on June 11, with a possible further increase in September, as the central bank weighs energy-driven inflation against a weak economy. Inflation in May was 3.2%, well above the ECBs target of 3.0%. More worryingly, core inflation rose faster than expected, reaching 2.5%, indicating the impact of the war in Iran is pushing up prices. Recent indicators, including PMI surveys and official data, suggest an economic slowdown. With the war lasting over three months and no clear solution in sight, the situation could worsen further, and the Strait of Hormuz remains severely congested. Most policymakers have made it clear that a June rate hike is inevitable, and even a peace agreement is unlikely to prevent it. However, economists believe that factors such as a weak economy, a softening labor market, and already high interest rates compared to the surge in inflation expected in 2022 suggest that aggressive tightening is not advisable.June 3 - The European Central Bank (ECB) is expected to raise its key interest rate next week, the first time since 2011. This move aims to send a clear signal about inflation to the market as the eurozone economy faces the risk of recession. However, the situation in 2011 differed significantly from policymakers expectations, leading economists to worry that a repeat could occur. In 2011, the ECB raised its key interest rate twice in response to rising oil prices. However, policymakers misjudged the state of the eurozone economy, which was mired in a debt crisis. The rate hikes were quickly reversed, and the ECB lost credibility for failing to properly understand the severity of the economic challenges facing the eurozone. "It took them 10 years to regain their credibility, and now theyre going to repeat the same mistakes," said Sami Char, chief economist at Lomar de Odier. Holger Schmidlin, chief economist at Berenberg Bank, stated, "The ECBs planned rate hike in June might mitigate the impact to some extent, causing less damage, but further rate hikes could delay the economic recovery following the Iran crisis and could even plunge the Eurozone into an unnecessary short-term recession."Intel (INTC.O) shares extended gains to 7.8% in pre-market trading after five consecutive days of declines.

Forecast for Gold Price: XAU/USD falls sideways below $1,630 as DXY loses momentum and yields approach 4.24 percent

Daniel Rogers

Oct 21, 2022 15:05

 截屏2022-07-29 上午11.06.12.png

 

In the Tokyo session, the gold price (XAU/USD) is oscillating within a small range of $1,625.00-1,628.55. Gold awaits price action from the US dollar index (DXY). The DXY is battling to maintain its position above the immediate resistance level of 113.00. As S&P500 futures have retreated from about 3,645.00, the asset was unable to maintain above the 113.00 barrier.

 

Well, returns on U.S. government bonds are soaring like there is no tomorrow and do not perceive any barrier. Since the subprime crisis, 10-year US Treasury rates have increased to 4.24 percent for the first time. Federal Reserve (Fed) policymakers' hawkish remarks have a positive impact on rates.

 

Thursday, Fed Governor Lisa Cook erroneously stated that inflationary pressures are too high and that additional rate hikes are necessary to combat them. She said that additional rate hikes are forthcoming and that the restrictive approach will be maintained.

 

According to the CME FedWatch tool, the probability of a fourth consecutive 75 basis point (bps) rate increase remains over 93%.

 

After testing the $1,642.58–$1,670 range's highest auction area on an hourly scale, the gold price has experienced a precipitous drop. The precious gold is falling toward its two-year low of $1,614.85, which will occur on September 8, 2022. The decline of the 20-period and 50-period Exponential Moving Averages (EMAs) at $1,629.86 and $1,634.46 strengthens the negative filters.

 

In the meantime, the Relative Strength Index (RSI) (14) is bouncing between 40.00 and 60.00, and a change into the negative 20.00 to 40.00 area will spark downward momentum.


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