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Futures market data for August 26th: 1. Heavy rainfall is expected in parts of the Indochina Peninsula, the Korean Peninsula, and other regions. Over the next three days, under the influence of Typhoon Swordfish, northern Vietnam, northern Laos, northern Thailand, and Myanmar will experience heavy to torrential rain, with some areas experiencing torrential downpours, accompanied by brief bursts of heavy rainfall, thunderstorms, and strong winds. Cumulative precipitation is expected to reach 60-100 mm in most of these regions, with some areas experiencing 120-160 mm, and some areas exceeding 200 mm. Additionally, parts of central, eastern, and northwestern India, northern Pakistan, Nepal, Bhutan, and Bangladesh will experience moderate to heavy rain, with localized torrential or torrential downpours. Under the combined influence of a low-pressure trough and warm, moist air from the northern subtropical high pressure, parts of most of North Korea, northern South Korea, central and northern Japan, and the southern Russian Far East will experience moderate to heavy rain, with localized torrential downpours. Under the influence of a low vortex, West Africa, northern Central Africa, and northern East Africa will experience moderate to heavy rain, with localized torrential downpours, accompanied by brief bursts of heavy rainfall, thunderstorms, and strong winds. 2. High temperatures will continue in West Asia, Central Asia, North Africa, the southwestern United States and other places for the next three days. Under the continued influence of the subtropical high pressure, most of the Arabian Peninsula, southwestern Iran, southwestern Afghanistan, southwestern Pakistan, eastern Turkmenistan, most of North Africa and other places will have high temperatures above 40°C, and locally up to 45°C; parts of southern Spain, the southwestern United States, northern Mexico, central Brazil and other places will have high temperatures above 35°C, and locally up to 40°C.SpaceX: The 10th test flight launch of the Starship was canceled due to weather reasons.Japans corporate services price index rose by 2.9% year-on-year in July, compared with 3.20% in the previous month.Japans corporate services price index rose by 0.3% month-on-month in July, compared with -0.1% in the previous month.New York gold futures fell to $3,400 an ounce, down 0.59% on the day.

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

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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.