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On May 19th, international gold and silver prices were sold off due to market bets on a Federal Reserve rate hike this year triggered by better-than-expected US inflation data. While the Shenzhen Shuibei Gold and Jewelry Market remained bustling, the sharp price fluctuations affected consumer willingness to trade, and many merchants adjusted their business strategies accordingly. One store manager stated, "Sales have dropped significantly, down by about 50% year-on-year. Weve gone back to wholesale. Gold transactions are low, and silver has seen a precipitous drop; investors are basically not coming anymore." In contrast to the sluggish retail market, the processing of gold and silver products has been very active recently. The head of a processing company told reporters that their business volume has increased significantly compared to the same period last year, with many customers no longer frequently buying and selling their existing gold and silver products, instead focusing on processing and planning to hold them long-term.A spokesperson for the Qatari Ministry of Foreign Affairs stated that only two liquefied natural gas tankers passed through the Strait of Hormuz, which clearly does not mean that normal navigation has resumed.On May 19, Ding Xuexiang, member of the Standing Committee of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, met with Russian First Deputy Prime Minister Manturov in Beijing. Ding stated that under the strategic guidance of President Xi Jinping and President Putin, relevant parties in China and Russia have worked together to maintain a good momentum of investment cooperation between the two countries. This year marks the 30th anniversary of the establishment of the China-Russia strategic partnership of coordination and the 25th anniversary of the signing of the Treaty of Good-Neighborliness and Friendly Cooperation between China and Russia. Both sides should take this opportunity to further implement the important consensus reached by the two heads of state, leverage the coordinating role of the China-Russia Investment Cooperation Committee, steadily advance key projects, expand cooperation areas, achieve more practical results, and continuously inject strong impetus into the development of bilateral relations. Manturov stated that Russia is willing to strengthen strategic alignment with China, enrich the content of cooperation, actively address issues of mutual concern, and continuously improve the level of investment cooperation between the two countries.Shell CEO: Events of the past few months demonstrate that meeting oil demand will be crucial in the coming decades.Indian oil company executive: The companys crude oil inventory exceeds one months supply.

Gold Price Prediction: XAU/USD maintains rises near $1,650 in advance of a crucial Fed decision

Alina Haynes

Nov 02, 2022 17:50

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Gold pricing is benefiting from the US dollar's continuing weakening, as Treasury yields feel the heat of normal market concern preceding a US Federal Reserve (Fed) event.

 

Asian markets were a mixed bag, as the Chinese tech stocks-led surge sputtered and growth fears reemerged in the wake of the extension of covid lockdowns in numerous cities. In the meantime, benchmark US 10-year interest rates are returning to the 4% critical level, allowing gold prices to remain buoyant.

 

Investors eagerly await any hints of a lesser rate increase in December as all eyes remain on the anticipated 75 bps Fed rate hike decision, with Chairman Jerome Powell's press conference grabbing the spotlight. The US ADP Employment Change data will also be monitored prior to the Fed event, as it may present transitory trade opportunities. Until Friday's release of Nonfarm Payrolls, traders may take signals from ADP jobs while awaiting the Nonfarm Payrolls report.

 

Even though the 14-day Relative Strength Index (RSI) is below the 50 level, a dovish Fed rate hike might turn the tables on bears, allowing XAU/USD bulls to retake the bearish 21-Daily Moving Average (DMA) around $1,660 with conviction. Gold bulls could stretch their muscles in the direction of the high at the end of October of $1,675 while gaining vigor to target the $1,700 level.

 

On the other hand, a hawkish surprise might cause the gold market to resume its broader downward trend, with initial support likely at the current range lows near $1,680. The $1,620 round number represents the next downside limit, below which the $1,617 October low could be endangered.


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