• English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On October 17th, as news of bank loan defaults hit Wall Street, CNBC commentator Jim Cramer said the latest developments would pave the way for the Federal Reserve to cut interest rates, a move widely anticipated by investors. He said, "Todays market is indeed terrible, but at least we finally have a reason for the Fed to rush to cut rates sooner rather than later: bank loan defaults. Nothing prompts the Fed to act faster than credit losses, as they are a clear signal that the economy is heading for a downturn." On Thursday, US stock indices generally fell as investor concerns grew about the health of regional banks loan books. Cramer pointed out that non-performing loans are an early warning sign that it is time for the central bank to ease monetary policy. The banking system has "sufficiently accrued enough problem loans" within a week, which is enough for the Fed to cut interest rates quickly without worrying too much about inflation. He emphasized that lower borrowing rates not only stimulate the economy generally but also make it easier for borrowers to avoid default.The Bank of Japan index fell 1.88%, leading the decline in Japanese stocks.On October 17th, CICC Research stated that, looking ahead, we maintain our view that domestic demand in the Eurozone economy will recover slowly, primarily due to the lagged impact of monetary policy easing and the gradual implementation of fiscal policies (including defense). We believe two key areas warrant observation: first, whether the EU can adopt more forceful reform measures. After all, fiscal policy is a necessary, but not sufficient, condition for breaking the EUs current economic predicament. The EUs fiscal space is fundamentally constrained by its demographics and growth prospects. Structural reforms (such as further EU integration, improved regulation, and the promotion of capital markets) are key to maximizing the effectiveness of EU fiscal spending. While discussions on reform are growing within the EU, measures currently in place remain relatively limited. Second, the extent of the consumption recovery remains uncertain. Despite a significant decline in interest rates, both the savings rate and the propensity to save in the Eurozone remain high. Whether the rise in the savings rate is temporary or structural in the new macroeconomic environment remains to be seen.Japan bought 59.3 billion yen of foreign stocks in the week ending October 10, compared with -145.27 billion yen in the previous week.Foreign investors bought 199.4 billion yen of Japanese bonds in the week ending October 10, compared with 125.84 billion yen in the previous week.

Forecast for Gold Price: XAU/USD sellers near $1,955 confluence as yields recover amid banking and growth concerns

Alina Haynes

Mar 27, 2023 14:38

 截屏2022-06-07 下午5.15.32.png

 

Gold price (XAU/USD) falls $1,970 over the course of a two-day losing trend preceding Monday's European session. In doing so, the precious metal justifies the most recent revival in US Treasury bond yields and the US Dollar, while extending yesterday's U-turn from the key resistance zone.

 

As First Citizens bank agrees to purchase a sizable portion of Silicon Valley Bank, dwindling banking jitters may also be a factor. (SVB). In recent days, the XAU/USD has been weighed down by hawkish Fed comments, the pace of China's growth, one of the world's largest Gold consumers, as well as primarily US data.

 

Kristalina Georgieva, the head of the International Monetary Fund (IMF), cautioned that "risks to financial stability have increased," prompting an investigation into Gold sellers. On the same vein, Minneapolis Fed President Neel Kashkari voiced concerns about an impending US recession.

 

US Dollar Index (DXY) prints a three-day uptrend near 103.12 as traders prepare for important inflation data on Friday, specifically the US Core Personal Consumption Expenditure (PCE) Price Index for February.

 

In spite of this, 10-year US Treasury bond yields increased by two basis points to 3.40 percent, while their two-year counterpart ended a three-day losing trend close to 3.85 percent as of press time.

 

Moving forward, the Gold price remains on the bears' radar due to the failure of traders to overcome the critical resistance and the month-end consolidation. However, Friday's release of the Fed's favored inflation gauge becomes crucial for XAU/USD traders seeking direction.