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Boeing (BA.N): Willing to accept the mediators request to return to the negotiating table (labor and management related to the military industry).Tesla (TSLA.O): Calls for votes consistent with the companys position on all resolutions.On October 18, ECB board member Wensch said that the ECB should not react to small deviations from the 2% inflation target, especially when these fluctuations are due to factors that are difficult for monetary policy to intervene. Wensch said: "I will not be nervous when inflation deviates from the target by 10, 20, or 30 basis points." With the deposit rate at 2% and price increases around 2%, officials basically expressed satisfaction with the current policy. But the ECB still expects inflation to be below target next year, which has sparked speculation among some about whether further easing is needed. Wensch said that the expected decline may not be as significant as initially expected. In addition, the slowdown in inflation is the result of a "positive supply shock" - energy inflation is falling. In Wenschs view, "the possibility of further interest rate cuts is decreasing, but if there are some downward surprises in the coming months, this possibility may reappear."On October 18, the Financial Times reported that the government led by British Prime Minister Starmer believes that it is about to reach a major drug pricing agreement with the White House, under which the UK will pay billions of pounds more for some drugs in exchange for the US imposing "as low as zero" tariffs on British drug exports. British officials said that the negotiations have entered an advanced stage. They said that the ultimate goal will be to impose zero tariffs on all drugs produced in the UK. Some people familiar with the negotiations said that the United States may push for a 10% tariff. Varun Chandra, chief business adviser to British Prime Minister Starmer, has been leading the negotiations. A London official said: "We are quite close to reaching an agreement. Extensive discussions have been held in the past 10 days."ECB board member Kocher: The next interest rate move could be a cut or a hike.

Gold Price Prediction: XAU/USD fluctuates within the $30 level as FOMC Minutes approach

Daniel Rogers

Feb 22, 2023 15:16

Gold price (XAU/USD) tests a two-day downturn as it floats around $1,835 at the start of Wednesday. As traders anticipate the Federal Open Market Committee's (FOMC) Monetary Policy Meeting Minutes, the precious metal maintains its trading range of approximately $30.00 from the previous week. Notably, geopolitical concerns and the US Dollar's weak movements around the multi-day peak appear to act as filters for XAU/USD traders.

 

In spite of this, stronger preliminary US S&P Global PMIs for February and hawkish Fed bets supported the US Dollar Index's first daily gain in three days, with the index closing down 0.07% intraday near 104.11 at the latest.

 

However, the weak movements of US Treasury bond yields near the three-month high reached the day before appear to have stifled the XAU/momentum USD's of late.

 

The hawkish bias around the US Federal Reserve (Fed) and rumors of an impending policy flip may also test Gold traders.

 

In addition, comments by US Secretary of State Antony Blinken and Russian President Vladimir Putin have an impact on market mood and the price of gold, as both imply an escalation of tensions between Moscow and Kyiv, in which the West and China have recently played an indirect role. But, the absence of substantial updates in Asia appeared to have halted the risk-averse sentiment.

 

US 10-year and 2-year Treasury note rates oscillate around the three-month highs established the previous day, while S&P 500 Futures post modest gains despite Wall Street's negative closing price.

 

In the near future, conflicting sentiment and caution ahead of the FOMC Minutes could maintain XAU/USD on a precarious floor, but the hints for a Fed policy reversal will be sufficient to recall Gold purchasers.


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