EUR/USD 1.15192
0.153%
Gold 4316.21
1.373%
Oil 74.785
-0.211%
USD/JPY 160.572
-0.051%
GBP/USD 1.33138
0.159%
GBP/JPY 213.787
0.106%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Japanese Chief Cabinet Secretary Minoru Kihara: We will continue to closely monitor the financial markets.June 18th - According to the Washington Post Editorial Committee, the Federal Reserve kept interest rates unchanged, and newly appointed Chairman Warsh stated that the Fed under his leadership is unanimously and unequivocally committed to controlling inflation. This will be a long road, but he has passed his first major test since taking office. Furthermore, at his first meeting as chairman, Warsh ended the practice of issuing forward guidance, but the Fed still released a dot plot. The latest dot plot shows that nine members expect a rate hike before the end of the year, eight expect no change, and one expects a rate cut. Warsh himself did not submit his own forecast. His reasoning was that the market should price based on how investors interpret real-time economic data, not on what the Fed might do. He joked that all forecasts were submitted in pencil and could be erased and rewritten at any time before the Board meets again in six weeks. Warsh faces a tricky balancing act: demonstrating the central banks independence while avoiding angering Trump, who just nominated him for a four-year term. Trump has made no secret of his desire for rate cuts, but recently stated that Warsh should "do whatever he wants." Walsh declined to answer whether he had spoken with Trump since taking office. The real test of his independence will come in the coming months.The yield on Japans 20-year government bonds rose 1.5 basis points to 3.510%.Japanese Chief Cabinet Secretary Minoru Kihara: We will closely monitor market dynamics and guide economic and fiscal policies as appropriate.Japanese Chief Cabinet Secretary Minoru Kihara: The impact of the weak yen must be fully considered.

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