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Goldman Sachs: Lowered its forecast for the Euro Stoxx 600 index over the next 12 months from 570 points to 520 points.On April 14, Bank of Japan Governor Kazuo Ueda said on Monday that economic uncertainty in the world and Japan has risen sharply due to the US tariff policy. "US tariffs may bring downward pressure on the global and Japanese economies through various channels," Kazuo Ueda told Congress. "The Bank of Japan will appropriately guide monetary policy from the perspective of sustainably achieving the 2% inflation target, while assessing the economic, price and financial situation without prejudgment," Kazuo Ueda said.Goldman Sachs raised its year-end gold forecast to $3,700 an ounce (from $3,300 previously).On April 14, according to Yonhap News Agency, Lee Jae-myung, former leader of South Koreas largest opposition party, the Democratic Party of Korea, said on the 18th: "We want to build South Korea into the worlds top three artificial intelligence (AI) powers," and promised to invest 100 trillion won in AI funds. Before visiting FuriosaAI, a local artificial intelligence chip startup in South Korea, Lee Jae-myung posted on social platforms that artificial intelligence will be a "game changer" that reshapes the global economy. He said: "It will usher in an era of 100 trillion won in artificial intelligence investment." "The government will become a catalyst for private investment and increase the AI budget to a level that exceeds that of developed countries." He also said that it is necessary to ensure that companies are not subject to unnecessary and unreasonable restrictions before receiving investment.Bank of Japan Governor Kazuo Ueda: The Bank of Japan will make appropriate monetary policy decisions to steadily achieve the inflation target of 2%, while carefully examining the development of the economy, prices and finance without any preconceptions.

Gold Price Prediction: XAU/USD falls below the $1,670 barrier before the Fed's chosen inflation gauge

Alina Haynes

Oct 28, 2022 15:18

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Gold price (XAU/USD) consolidates its second consecutive weekly gain as bears test the $1,658 mark ahead of Friday's European session. In doing so, the yellow metal traces the recent decline in commodities and Antipodean currencies against the backdrop of the dollar's recovery.

 

In spite of this, the US Dollar Index (DXY) gains bids to extend yesterday's gains to 110.65 as 10-year US Treasury yields rise to 3.94 percent. In spite of this, benchmark bond coupon yields reverse a 10-week advance, which boosted equity and gold prices earlier in the week.

 

While seeking answers, the market's nervousness ahead of the US Core PCE Price Index for September, which is anticipated to jump to 5.2% from 4.9% previously, might be viewed as significant in light of the recent pullback in hawkish Fed wagers. As buzz surrounding the Fed's easy rate hike in December intensifies, the inflation number and market wagers on the Fed's next action become increasingly significant.

 

Other than the rebound in the DXY, economic concerns about China, one of the world's largest commodity consumers, and geopolitical concerns about Ukraine impose downward pressure on the XAU/USD exchange rate. "The International Monetary Fund (IMF) lowered its economic estimates for Asia on Friday due to global monetary tightening, increasing prices blamed on the war in Ukraine, and China's rapid slowdown," said Reuters.

 

In the midst of these plays, stock futures are red, mirroring Wall Street's poor performance, as bond markets pare recent gains.

 

In a probable lively session, the US inflation data and pre-Fed worries could provide XAU/USD bears some motivation.

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