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On June 9th, Mabrouk Chetouane, an analyst at Natixis IM, stated that although the market has fully priced in the European Central Banks (ECB) rate hike expectations for this week, ECB President Christine Lagarde still needs to proceed cautiously at the press conference, striving to portray this monetary tightening policy as a "dovish rate hike." The global head of market strategy said, "In fact, the current lack of clear signals that rising energy prices are having spillover effects on the real economy, coupled with the weakness of the European economic cycle, seems to support a more moderate approach to inflation." However, he also emphasized that, in accordance with its mandate and the creed of anchoring market expectations, the ECB Governing Council will still raise interest rates to enhance its credibility and demonstrate its responsiveness.French Foreign Minister Barrow: France is coordinating the implementation of sanctions with the United Kingdom, Canada, Australia, New Zealand and Norway.Britain and its allies have imposed sanctions on six entities involved in violence in the West Bank.Britain has imposed sanctions on networks that fuel violence among West Bank settlers.On June 9th, Jingfeng Medical (02675.HK) announced that its board of directors intends to exercise the general mandate granted by the resolution passed at the shareholders meeting on June 16, 2025, to use the share repurchase mandate to repurchase H shares in the open market from time to time with a total amount of up to HK$200 million, depending on market conditions. The implementation period will last until the conclusion of the next annual general meeting or until the special resolution withdraws/amends the repurchase mandate.

Forecast for Gold: XAUUSD retreats from $1800 on rising US yields

Daniel Rogers

Aug 12, 2022 11:59

 截屏2022-06-07 下午5.14.22.png

 

While it had been trending upwards, gold's daily performance took a sour turn and it is now trading below $1800. During the American session, the XAUUSD reached a high of $1799 before turning down and heading below $1785.

 

Despite predictions of a 0.2% monthly increase, data released on Thursday indicated that the US Producer Price Index decreased by 0.5% in July, bringing the annual rate down to 9.8%. The Consumer Price Index did not move in July, contrary to predictions of a 0.2% increase, according to data released on Wednesday. The US currency fell because of the inflation rate going down.

 

Investors continue to count on a rate hike of 50 basis points or more from the Federal Reserve at their September meeting. U.S. rates have risen despite though a peak in US inflation is more likely, which is surprising. Both the US 10-year yield (now at 2.83%) and the 2-year yield (3.20%) are at their highest levels in nearly a week.

 

Increased US yields capped gold's gains. The inability of the XAU/USD pair to maintain a price over $1800 despite the recent US data has fueled skepticism that the rally will continue. Weekly support is found around $1774, and the immediate support is at $1785. Additional gains appear likely if the price of gold can consolidate over $1800.


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