EUR/USD 1.13865
0.150%
Gold 4071.52
1.116%
Oil 69.386
-2.717%
USD/JPY 161.751
-0.028%
GBP/USD 1.31980
0.059%
GBP/JPY 213.482
0.043%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
June 28 - According to foreign media reports on the 27th, citing official Iranian data, Irans inflation rate in June rose sharply to 88.6% year-on-year, affected by the Middle East conflict.On June 28, Iran launched a drone strike on Bahrain on Saturday, while simultaneously attacking a ship in the Strait of Hormuz, possibly in response to a US nighttime airstrike. The attacks in the Persian Gulf once again demonstrate that even with a provisional agreement between Iran and the US attempting to reach a final ceasefire, the Iran-Iraq war could still spiral out of control. This comes after the US Central Command stated that it launched strikes against Iran on June 26 in response to the attack on a merchant ship. Meanwhile, the International Maritime Organization announced on Saturday that it would widen the strait near Oman to allow two-way passage. This move could reignite tensions with Tehran, which views the strait as a key bargaining chip in ongoing negotiations with the US.On June 28, CNBC reported that an oil tanker in the Strait of Hormuz was attacked by artillery fire on Saturday, the latest development in escalating tensions between the United States and Iran after the two sides reached a provisional agreement aimed at ending hostilities in the region. The UKs Maritime Trade Action Centre stated that a vessel in the strait was hit by an "unidentified flying object," sustaining damage, but the crew was reportedly unharmed. Bahrain also condemned Irans drone attack on Saturday, calling it a "blatant violation" of its sovereignty. These new attacks come as the US and Iran were supposed to be in the midst of a 60-day ceasefire negotiation, discussing ending the war. However, both countries have accused the other of violating the terms of the agreement.Domestic News: 1. my country achieves significant breakthrough in the research and development of superconducting magnets for nuclear fusion reactors. 2. Wuhan Optics Valley introduces a package of new policies for science and technology finance, aiming to have over 100 listed companies. 3. National Bureau of Statistics: Industrial enterprise profits increased by 18.8% year-on-year in the first five months, with the electronics industry contributing over 40%. 4. Vice Premier Zhang Guoqing emphasized during his research visit to Zhejiang the need to strengthen the deep integration of scientific and technological innovation and industrial innovation. International News: 1. US Secretary of State Rubio: Pushing for Trumps visit to India early next year. 2. The US government may lift restrictions on the Anthropic Fable 5 model as early as next week. 3. ECB Executive Board member Schnabel: Price pressures may remain stronger than expected, and further interest rate hikes are anticipated. 4. A magnitude 6 earthquake struck the Hindu Kush region of Afghanistan, with tremors felt in the capital, Kabul. 5. Middle East Situation—① Israeli Army Radio: The Israeli army will reduce its forces in southern Lebanon and withdraw several combat brigades. ② Joint Maritime Information Center: The maritime security threat level in the Taiwan Strait has been raised from "moderate" to "high". ③ Following the Iranian Revolutionary Guards strikes on vessels violating regulations, more ships are seeking permission from Iran. ④ After the framework agreement between Lebanon, Israel, and the US, the Israeli military launched another attack on southern Lebanon. ⑤ Hezbollah: The Israel-Lebanon framework agreement is invalid, and it refuses to link Israeli troop withdrawal with Hezbollahs disarmament. On June 27th, European Central Bank (ECB) Executive Board member Schnabel warned that even if a US-Iran peace agreement reopens the Strait of Hormuz, price pressures could still be stronger than expected. Schnabel stated on Saturday that "food, goods, and services inflation face upside risks," and that energy price shocks could spread to a wider range of sectors. While welcoming the recent drop in energy prices due to the prospect of a US-Iran peace agreement, she warned that a ceasefire should not be a reason for complacency. She stated, "Uncertainty remains high, but the announced peace agreement reduces the likelihood of a negative scenario." Nevertheless, oil prices are expected to remain high because the Strait of Hormuz is only gradually reopening. Schnabel, considered the most hawkish member of the Governing Council, reiterated that "the ECB expects further interest rate hikes to bring inflation back to 2% in the medium term." She noted that consumer inflation expectations have risen. However, there are no signs of wage pressures yet.

Gold Price Forecast: XAU / USD flirts with $1,850 support convergence; Fed's Powell, US NFP in focus

Daniel Rogers

Mar 06, 2023 14:40

 255.png

 

Gold price (XAU/USD) remains mostly illiquid around $1,855 as traders brace for the key data/events during early Monday in Europe. Adding filters to the XAU/USD movements could be the muddled headlines from China, as well as the US Dollar’s inaction despite a pullback in the Treasury bond yields.

 

The National Development and Reform Commission of the People's Republic of China (NDRC) recently stated that it "Will further discharge the potential for consumption," adding that China's economy is consistently improving, as reported by Reuters. Earlier in the day, market sentiment deteriorated after China's National People's Congress (NPC) annual session appeared to be a gloomy event due to its development target and geopolitical concerns.

 

Elsewhere, San Francisco Federal Reserve Bank President Mary Daly highlighted the significance of incoming data to determine how high the rates can go. Previously, Atlanta Fed President Raphael Bostic renewed concerns about the Fed’s policy pivot while Federal Reserve published a semi-annual Monetary Policy Report on Friday wherein it plainly said, “Ongoing increases in the Fed funds rate target are necessary.” In addition, the report stated that the Fed is committed to restoring inflation to 2%.

 

It should be noted that US 10-year Treasury bond yields rose to their highest levels since November 2022 in the previous week before falling to 3.95% by the end of Friday and circling back to the same level at the latest. More significantly, US two-year bond coupons increased to levels not seen since 2008 before retracting to 4.85% as of press time. That said, the S&P 500 Futures print mild gains, mirroring Wall Street’s movements amid a light sluggish start to the key week, whereas the US Dollar Index (DXY) remains depressed around 104.45, down 0.05% intraday by the press time.

 

Moving ahead, Gold traders may witness further inaction in the market as traders remain cautious before the key events including Fed Chair Jerome Powell’s Testimony, China’s inflation data and Friday’s US employment report for February.


Suggestion