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On January 27, the Federal Reserve announced that due to inclement weather, the federal government offices in Washington, D.C., will be closed on Tuesday, January 27. The Fed plans to release all announcements, including statistical data, as scheduled. The Federal Open Market Committee (FOMC) will hold its monetary policy meeting as planned on Tuesday, January 27, and Wednesday, January 28. The FOMC statement will be released at 2:00 p.m. Eastern Time on January 28 (3:00 a.m. Beijing Time on Thursday), and the Fed Presidents press conference will begin at 2:30 p.m. (3:30 a.m. Beijing Time on Thursday).On January 27th, at a recent internal strategy meeting, Baidu Smart Cloud executives set the tone, raising the 2026 AI-related revenue growth target from 100% to 200%, with all employees striving for high growth and aiming to become number one in the AI cloud market.Gold prices rose in early Asian trading on January 27th, driven by tariff concerns. US President Trump announced on Monday that the US would raise tariffs on imported cars, pharmaceuticals, and timber from South Korea from 15% to 25% because the South Korean parliament has not yet approved a trade agreement with the US. “Gold continues to attract safe-haven inflows amid ongoing trade and geopolitical tensions,” said Nikos Zabras of Tradu.com in an email. However, the senior market analyst added that the precious metal “remains vulnerable to profit-taking and price volatility, especially given the increasing speculative positions.”The UK is set to cap land rents on existing properties. Sources familiar with the matter say British officials will announce on Tuesday morning that the cap will be £250 per property.Japans corporate services price index rose 0% month-on-month in December, compared with 0.4% in the previous month.

Gold Price Prediction: XAU/USD forges bullish path above $1,960, Fed and banking unrest anticipated

Daniel Rogers

Mar 21, 2023 13:57

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Following a retracement from a Year-To-Date (YTD) high, the gold price (XAU / USD) regains upward momentum amid cautious optimism in the banking sector. The market's inaction during the Japanese holiday as well as the failings of US Treasury bond yields to prolong the recent corrective bounce off a six-month low could lend support to the recovery movements.

 

Headlines indicating that U.S. policymakers are searching for ways to insure all bank deposits and that major central banks are rushing to keep markets liquid with the US Dollar flow appear to favor Gold purchasers.

 

Notably, the most recent reading of the CME's FedWatch tool indicates that the likelihood of a 0.25% Fed rate rise on Wednesday is now close to 75%, up from 65% last week. This allows US Treasury bond yields to rebound. However, Treasury bond yields remain inactive due to Japan's national holidays, which restrict bond trading in Asia. The previous day saw the 10-year and 2-year US Treasury bond yields rebound from their lowest levels since September 2022.

 

Gold traders will be keenly interested in the Fed's response to the banking crisis, as the 0.25 percentage point rate hike is a foregone conclusion. Should the dot-plot hint at a policy reversal, the US Dollar could experience further losses, which could propel the XAU/USD exchange rate.


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