EUR/USD 1.15192
-0.165%
Gold 4676.00
-1.726%
Oil 103.832
10.230%
USD/JPY 159.630
0.023%
GBP/USD 1.31970
-0.219%
GBP/JPY 210.639
-0.167%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Russian warplanes attacked Kramatorsk in eastern Ukraine, killing three people and injuring three others.Market news: Türkiye will raise the average price of natural gas for residential users by 25%, while the price for industrial users will increase by 18.61%.According to the Wall Street Journal, the latest efforts by regional countries, led by Pakistan, to broker a ceasefire between the US and Iran have stalled.On April 4th, local time, Chief U.S. District Judge James Boasberg of the District of Columbia rejected the Justice Departments request to retry the criminal case against Jerome Powell, after his ruling blocked a subpoena issued in connection with the criminal investigation. In his March 13th ruling, Boasberg stated that the subpoena issued to the Federal Reserve Board in January of last year was for improper purposes, aimed at forcing Powell to agree to Trumps conditions demanding a swift interest rate cut or his resignation. The subpoena for Powell was issued by Washington D.C.s top federal prosecutor, Jeanine Piro (a staunch Trump supporter), who has pledged to continue the investigation and stated that her office is prepared to appeal to the U.S. Court of Appeals for the District of Columbia Circuit. Sources indicate that senior Justice Department officials support the appeal decision. This appeal could delay the confirmation of Kevin Warshs nomination as Federal Reserve Chair. Senator Thom Tillis, a Republican member of the Senate Banking Committee, has criticized the investigation into Powell and has vowed to continue blocking Warshs nomination while the appeal process continues.April 4th - According to Oxford Economics, the US March employment figures significantly overestimated the strength of the pre-war job market, as the data reflected declines in both the labor force and household employment. Job growth will slow as the war in Iran impacts real economic activity. The wars impact on inflation is immediate, but its negative effects on consumer spending, business investment, and hiring will become more apparent in the coming months. Oxford Economics baseline forecast remains that the Federal Reserve will ignore the one-off shock of rising oil prices this year and cut interest rates twice to guard against any future weakness in the labor market.

Gold Price Prediction: XAU/USD clings to 29-month low near $1,650; Ukraine, Fed's Powell in spotlight

Daniel Rogers

Sep 26, 2022 12:01

Gold price (XAU/USD) licks its wounds around a two-year bottom, at $1,645 during Monday's Asian session, as bears take a breather following the week's largest daily decline ahead of important catalysts. The contradictory news regarding Europe and Russia may further put pressure on metal prices. Despite this, bears remain optimistic despite the widespread rush to endanger safety.

 

Germany's ability to secure a gas contract with Abu Dhabi, as well as Russia's lack of rapid response to Group of Seven (G7) chatter about mustering guts against Moscow, indicated a correction in mood. Recently, a holiday in New Zealand and a light calendar in Asia allowed the XAU/USD bears to catch their breath.

 

During the past week, the gold price was pushed down by high US PMIs, weak activity data from the bloc, Russia's stern warning to the West, and the Group of Seven's (G7) readiness to respond with penalties. In addition, the XAU/USD was pulled down by hawkish central bankers and fears of recession.

 

Nonetheless, the initial readings of the S&P Global PMI for the month of September indicated that the European economy contracted significantly, hampered by rising energy prices. The German Services PMI reached its lowest level in two years, while its European counterpart reached its lowest level in 19 months. In addition, Manufacturing PMIs reached their lowest level in twenty months. In September, the US S&P Global Manufacturing PMI increased to 51.8 from 51.5, and the US S&P Global Services PMI improved from 44.6 to 49.0.

 

Jerome Powell, chairman of the Federal Reserve, stated elsewhere on Friday, "We are committed to deploying our tools." Following him, Fed Vice Chair Lael Brainard stated that 'hard' inflation is impacting low-income people. Raphael Bostic, president of the Atlanta Federal Reserve, told CBS' "Face the Nation" over the weekend that he still believes the central bank can reduce inflation without substantial job losses, given the economy's sustained pace, as reported by Reuters, citing the Fed official's interview.

 

According to a recent CBS interview, Ukraine's president Zelenskiy stated that "Putin's nuclear threats may have been a bluff, but now they might become a reality." The United States, meanwhile, warned of "catastrophic repercussions" if Moscow used nuclear weapons in Ukraine, after Russia's foreign minister stated that territories hosting heavily condemned referendums would receive full security if annexed by Moscow.

 

Wall Street closed in the red, US Treasury yields increased, and the US Dollar Index (DXY) reached a new multi-year high against this backdrop. Consequently, S&P 500 Futures record modest losses at the latest.

 

Intraday movements will be heavily influenced by Italy's election results and a statement by European Central Bank (ECB) President Christine Lagarde. Nonetheless, the week will be dominated by the Ukraine-Russia conflict, comments from Fed Chair Powell, and US Durable Goods Orders for direction.


Suggestion