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April 17th - According to the latest data released by Counterpoint Research on Friday, Apples (AAPL.O) iPhone shipments in China grew by 20% in the first quarter of this year, the strongest growth among major suppliers. The data shows that smartphone shipments in China, the worlds largest smartphone market, declined by 4% between January and March, mainly due to supply chain disruptions and soaring memory chip prices. However, Huawei and Apple bucked the trend, achieving growth of 2% and 20% respectively.On April 17th, European Central Bank (ECB) Governing Council member Michel Mueller stated that the ECB needs to remain vigilant regarding potential inflation risks arising from the Iran war, but should not act rashly. There are currently no signs of a broader second round of price impacts, and the ECB is in a more favorable position than it was in 2022. However, it would be "too dangerous" to assume that the energy shock is temporary and can be completely ignored. He stated, "We can perhaps exercise a little patience and not rush into action. But of course, we dont want to hesitate and fall behind the developments."On Friday, April 17, the Hang Seng Index closed down 233.93 points, or 0.89%, at 26,160.33; the Hang Seng Tech Index closed down 49.4 points, or 0.97%, at 5,042.68; the H-share Index closed down 60.09 points, or 0.67%, at 8,845.02; and the Red Chip Index closed down 21.69 points, or 0.5%, at 4,325.72.The Eurozones unadjusted current account balance for February was €21.1 billion, compared to €13 billion in the previous month.The Eurozones seasonally adjusted current account balance was €25 billion in February, compared to €37.9 billion in the previous month.

Forecast for Gold Price: XAU/USD surpasses $1,650 on falling wedge breakthrough; US PCE inflation observed

Daniel Rogers

Sep 30, 2022 10:46

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Gold price (XAU/USD) is anticipating its first weekly increase in three weeks as metal investors push $1,663 following the confirmation of the falling wedge bullish chart pattern the day before. In doing so, gold celebrates a weaker U.S. dollar but disregards the market's dismal conditions.

 

Consequently, the US Dollar Index (DXY) recorded another negative day, reestablishing the weekly low around 111.95. After the latest readings of the US Gross Domestic Product (GDP) for the second quarter confirmed the early projections of -0.6%, the greenback fell against the six major currencies.

 

It should be noted that the firmer printing of the US Weekly Initial Jobless Claims, which fell to 193K for the week ending September 24 compared to 209K before (updated from 213K) and the market's forecast of 215K, may have also weighed on the DXY. The US Initial Claims for Unemployment fell to their lowest level since April.

 

While respecting the data, St. Louis Federal Reserve Bank President James Bullard praised the decline in weekly Initial Jobless Claims and stated, "We will push inflation to 2% in a reasonable compact time frame." Elsewhere, Federal Reserve Bank of Cleveland President Loretta Mester stated on Thursday that they are not yet in a position to consider stopping interest rate hikes.

 

In addition to the Fed's aggressive rhetoric, anxieties originating from the United Kingdom, Russia, and China also test sentiment and the XAU/USD bulls, but they were unable to halt the price decline.

 

It's hard to avoid the conclusion that fiscal easing announced will prompt a significant and necessary monetary policy response in November," said Bank of England Chief Economist Huw Pill. On the other hand, record high German inflation, Russia's willingness to annex more parts of Ukraine, and the chatter over China's inability to tame its recession woes were also challenging the risk appetite.

 

As a result of these bets, Wall Street benchmarks reversed all Wednesday gains, while Treasury yields recovered.

 

Traders will pay special attention to the Fed's preferred inflation gauge, namely the Core Personal Consumption Expenditures (PCE) Price Index for September, which is anticipated to increase 4.7% year-over-year compared to the prior reading of 4.4%. If the actual outcome is stronger than anticipated, the XAU/USD exchange rate may struggle to rise.

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