EUR/USD 1.17453
0.044%
Gold 4333.46
-0.111%
Oil 56.339
-0.631%
USD/JPY 155.887
0.128%
GBP/USD 1.33678
-0.049%
GBP/JPY 208.391
0.085%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
1. WTI crude oil futures trading volume was 907,831 lots, a decrease of 62,999 lots from the previous trading day. Open interest was 1,890,371 lots, a decrease of 26,067 lots from the previous trading day. 2. Brent crude oil futures trading volume was 164,614 lots, an increase of 6,734 lots from the previous trading day. Open interest was 218,903 lots, an increase of 1,529 lots from the previous trading day. 3. Natural gas futures trading volume was 505,068 lots, a decrease of 141,552 lots from the previous trading day. Open interest was 1,555,333 lots, a decrease of 19,290 lots from the previous trading day.On December 18th, Jim Smigiel, Chief Investment Officer of SEI, stated in a report that the war against inflation is not yet won, which could keep inflation-sensitive assets in demand. While the worst concerns about tariffs have not yet materialized, SEI expects the lagged effects of tariff increases to continue pushing up inflation in the coming months and quarters. He stated, "We believe investors should continue to invest in inflation-sensitive assets in 2026. The reflationary environment should favor commodities and value stocks, as the Great Beauty Act boosts U.S. consumer spending."On December 18th, Futures News reported that an armed attack on a mine in Plateau State, central Nigeria, may have resulted in at least 12 deaths, 5 injuries, and 3 kidnappings. Reuters, citing the head of a Belom youth organization, reported that the attackers, possibly Fulani militants, attacked a mine in Atoso village, Plateau State, on the evening of the 16th. The organization also urged the government to deploy more security forces and enforce the ban on open grazing. Plateau State police have launched an investigation into the incident. In Plateau State, Fulani herders and Belom farmers frequently clash over land control.The head of a Japanese banking lobbying group said that the Bank of Japan is highly likely to raise interest rates this time.On December 18th, the Peoples Bank of China (PBOC) conducted 88.3 billion yuan of 7-day reverse repurchase operations in the open market, maintaining the interest rate at 1.40%, and simultaneously conducted 100 billion yuan of 14-day reverse repurchase operations. Wang Qing, chief macro analyst at Orient Securities, stated that with the year-end approaching, the PBOCs decision to conduct 14-day reverse repurchase operations at this time is customary. This is mainly due to increased liquidity disturbances caused by factors such as bank assessments, fiscal revenue and expenditure, and residents cash withdrawals around the year-end. The PBOCs 14-day reverse repurchase operations can effectively smooth out fluctuations in the money market and guide market liquidity to a relatively stable and ample state. The market has high expectations that the PBOC may implement a new round of reserve requirement ratio (RRR) cuts early next year. Considering the current economic and financial situation and monetary policy orientation, it is expected that the PBOC may announce an RRR cut in January 2026, with an estimated reduction of 0.5 percentage points, injecting approximately 1 trillion yuan of long-term liquidity into the market. This would support large-scale bank lending at the beginning of next year while also taking into account liquidity arrangements for the Spring Festival, signaling a strengthening of pro-growth policies.

Gold Price Prediction: XAU/USD nears $1,850 resistance on China, yields favor DXY decline

Daniel Rogers

Feb 16, 2023 14:42

 截屏2023-01-19 下午3.43.28.png

 

Gold price (XAU/USD) shows modest increases near $1,840 as traders lick their wounds during Thursday's early slow activity. In doing so, the precious metal recovers from its largest daily decline in two weeks by drawing cues from cautious market optimism and a weakening U.S. dollar.

 

However, news reports concerning China and the U.S. debt ceiling appear to have supported the recent improvement in the risk profile. Consequently, Chinese President Xi Jinping crossed wires while demonstrating his willingness to expand industrial and investment cooperation with Asia. According to Chinese official media, he was followed by optimistic remarks from Chinese Finance Minister Liu Kun, who stated that 2023 fiscal revenue will increase this year, albeit at a moderate rate. Moreover, the chatter surrounding the US debt-ceiling crisis, as warned by the US Congressional Budget Office (CBO) on Wednesday according to Reuters, appeared to have raised hopes for a speedier resolution of the major issue in the coming days and probed the upward movement of US Treasury bond yields.

 

It should be noted that the World Gold Council's (WGC) update indicating China's massive Gold imports in 2022, the largest since 2018, appeared to have stabilized the XAU/USD exchange rate, particularly following the previous day's decline.

 

The US data-driven hawkish Fed bias and a rise in US Treasury bond yields appear to present the greatest threat to Gold buyers.

 

In this context, S&P 500 Futures post modest gains around 4,165 while extending yesterday's gains, while US 10-year Treasury note rates retreat following Wednesday's surge to a 1.5-month high, falling two basis points to approximately 3.78% as of press time. In spite of this, the US Dollar Index (DXY) fell 0.20% to 103.65 at the latest, after reaching a 1.5-month high the day before.

 

For new impetus, gold traders should focus on secondary US statistics about the housing market, industrial activity, and producer prices.


Suggestion