EUR/USD 1.16837
0.426%
Gold 4587.04
1.763%
Oil 58.774
0.266%
USD/JPY 157.734
-0.092%
GBP/USD 1.34541
0.359%
GBP/JPY 212.224
0.269%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On January 12, it was reported that U.S. Immigration and Customs Enforcement (ICE) officers shot and killed 37-year-old Ryan Goode during an immigration enforcement operation in Minneapolis on January 7, sparking days of protests across the United States. On January 11, protests entered their sixth day in Minneapolis, New York, Oakland, Atlanta, and other cities. Residents of Minneapolis stated that this forced immigration enforcement by the federal government was tantamount to "terrorism." Other protesters stated that the U.S. governments attacks on immigrants domestically and its imperialist aggression abroad should both be opposed.The onshore yuan closed at 6.9742 against the US dollar at 16:30 on January 12, up 79 points from the previous trading day.Iranian Foreign Ministry Spokesperson: Apart from Switzerland acting as an intermediary, communication channels between Iran and the US special envoy remain open.On January 12th, analysts at Metzler Asset Management noted in a report that domestic politics in Japan are once again putting pressure on the yen. Sources indicate that Prime Minister Sanae Takaichi is considering dissolving the House of Representatives, which could trigger a new general election in February. Analysts stated that although the Prime Ministers Liberal Democratic Party currently holds slightly less seats in the House than the absolute majority needed, polls suggest it may win more seats in the new election. "Market participants may worry that this will lead the government to take further measures to curb prices, thereby reducing the likelihood of a Bank of Japan interest rate hike, and thus putting downward pressure on the yen."British precious metal miners rose, with Hochschild Minerals up 5.9% and Fresnillo up about 5%.

Forecast for the price of gold: Pre-NFP trade slowdown around $1,790 according to XAU/USD

Alina Haynes

Aug 05, 2022 15:08

 截屏2022-08-04 下午5.25.46_1024x576.png

 

As traders exhibit the normal concern ahead of the important US employment data on Friday, the price of gold (XAU/USD) seesaws near the monthly peak. Despite this, the price of yellow metal fluctuates between $1,788 and $1,791 as of the morning of the press in Europe.

 

The market's conflicting fears about the global recession and the most recent geopolitical stories affecting Taiwan, in addition to the pre-NFP caution, further contribute to the XAU/USD's movement. It's important to note that the options market sends conflicting signals and presents difficulties for gold purchasers.

 

The recent increase in US Treasury rates has helped to strengthen the US currency and put downward pressure on the price of gold, but it also seems to have lessened concerns about a global economic downturn.

 

The US Dollar Index (DXY) reverses a two-day slump and registers modest gains at 106.00. The dollar index declined during the previous two days before consolidating recent losses by monitoring the yields. It's important to note that after falling during the previous two days, the US 10-year Treasury rates have stabilized at roughly 2.069 percent. The disparity between the coupons for 10-year and 2-year bonds is still the largest it has been since 2000, yet US Treasury rates have continued to show the possibility of a recession.

 

Geopolitical issues from the Taiwan Strait are also a problem for gold purchasers elsewhere, as China expresses its displeasure with Nancy Pelosi, the speaker of the US House of Representatives, visiting Taipei. According to West Official, US Secretary of State Antony Blinken recently stated at an East Asia meeting that China's response to US House Speaker Nancy Pelosi's visit to Taiwan had been "flagrantly aggressive."

 

In terms of the options market's attitude, a one-month risk reversal (RR) of gold prices ends a three-week downturn when seen weekly, but if observed daily, it causes a third straight day of decline. It should be mentioned that the risk reversal term refers to the spread between bullish and bearish bets, namely the call options and put options (RR).

 

In conclusion, gold prices are still stable, but the bad news outweighs the good news, therefore today's US employment data for July will be important for the short-term outlook. The US dollar's recovery may continue and impact on gold prices if the employment numbers look to be higher than expected.


Suggestion