EUR/USD 1.14364
0.176%
Gold 4103.48
0.640%
Oil 73.212
-1.750%
USD/JPY 162.380
-0.130%
GBP/USD 1.34209
0.240%
GBP/JPY 217.934
0.116%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Yields on UK government bonds of all maturities fell by about 4-6 basis points in early trading.On Thursday, July 9th, the German DAX 30 index opened 247.33 points higher, or 0.99%, at 25113.00; the UK FTSE 100 index opened 30.04 points lower, or 0.29%, at 10459.00; the French CAC 40 index opened 59.35 points higher, or 0.72%, at 8312.01; the Euro Stoxx 50 index opened 56.94 points higher, or 0.92%, at 6261.85; the Spanish IBEX 35 index opened 211.39 points higher, or 1.11%, at 19260.69; and the Italian FTSE MIB index opened 418.25 points higher, or 0.81%, at 52235.50.Gold prices rebounded above $4,100 an ounce on July 9th after Wednesdays sell-off. This rally was supported by a weaker dollar and renewed geopolitical tensions in the Middle East following Wednesdays renewed clashes between the US and Iran. However, rising energy prices could complicate the inflation outlook, reinforcing market expectations that the Federal Reserve will maintain high interest rates for a longer period or raise rates further. The minutes of the Feds mid-June policy meeting highlighted a hawkish shift within the committee, putting pressure on precious metals. Thomas Ryan, an economist at Capital Economics, said, "The minutes reiterated that the door to a September rate hike remains very open."According to Futures News on July 9th, as of 15:00 Beijing time, spot platinum rose 1.86% and spot palladium rose 1.78%.July 9th - Oil-themed funds opened higher but closed lower. Harvest Crude Oil LOF, E Fund Crude Oil LOF, and Southern Crude Oil LOF all turned negative in the afternoon, after rising over 7% in the morning session. The S&P Oil & Gas ETF Fullgoal and the Oil LOF also turned negative. US President Trump had previously stated that Iran had called earlier, expressing their desire to reach an agreement.

Gold Price Prediction: XAU/USD falls toward $1,920 as the Fed appears poised to increase interest rates further

Daniel Rogers

Jan 31, 2023 16:13

 107.png

 

During the Asian session, the gold price (XAU/USD) is falling towards the immediate support of $1,920.00. The precious metal has been demonstrating a topsy-turvy move with increased traction for the US Dollar Index (DXY) ahead of the interest rate decision by the Federal Reserve (Fed), which is slated for Wednesday. The Gold price is currently bidding in the range of $1,922-1,933 and is anticipated to continue volatile in the near future.

 

S&P500 futures have added some gains following a massive sell-off on Monday, indicating confidence as the Fed is anticipated to pause the pace of increasing interest rates. Despite market pessimism, the USD Index is seeking to continue its breakout above the 101.80 resistance to near 102.00. In addition, the market participants' risk aversion is supporting the 10-year US Treasury yields, which have risen above 3.54 percent.

 

In addition to the Federal Reserve's interest rate policy, the release of United States Automatic Data Processing (ADP) Employment data will heighten market volatility. The economic data is anticipated to be 170K, a decrease from the previous report of 235K.

 

The US labor market has remained exceptionally tight in CY2022 but the continuing of interest rate hikes by Fed chair Jerome Powell is denting the expression of optimism in producers. As a result of the bleak economic outlook, businesses are halting their recruitment efforts in an effort to maximize the utilization of their current workforce.


Suggestion