EUR/USD 1.15204
-0.025%
Gold 4235.48
-0.117%
Oil 77.271
-0.129%
USD/JPY 158.517
0.048%
GBP/USD 1.34502
-0.023%
GBP/JPY 213.214
0.020%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On August 7th, it was reported that on August 6th local time, a New Mexico court ruled that Meta, the parent company of Instagram and Facebook, must pay $567 million to address the impact of its platforms on teenagers. Judge Brian Biedhid stated that $420 million of the funds will be used for adolescent rehabilitation services, with the remainder allocated over the next five years for advocacy, prevention, screening services, and other related expenses.The yield on Japans 20-year government bonds rose 2.0 basis points to 3.660%.According to foreign media reports, Malaysian crude palm oil futures on the Bursa Malaysia Derivatives Exchange (BMD) are likely to open higher on Friday morning, following gains in external markets. International crude oil futures rose on Thursday as a committee in the Iranian parliament was considering a draft bill to ban US and Israeli ships from the Strait of Hormuz, which is expected to boost Malaysian crude palm oil futures in early trading. Brent crude futures rose further during electronic trading on Friday morning. Strong Malaysian palm oil exports and the potential threat of a strong El Niño phenomenon to palm oil production in Southeast Asia will also provide strong support for the palm oil market. Shipping surveyors estimate that Malaysian palm oil exports in July increased by 12.1% to 19.5% month-on-month. However, a stronger ringgit and potential increases in Malaysian palm oil inventories will limit the markets upward momentum. The Malaysian Palm Oil Board (MPOB) will release monthly data on August 10. A survey indicates that Malaysian palm oil exports in July will surge by 14.8% month-on-month, production will increase by 7.4%, and inventories will rise to a five-month high.Japans foreign exchange reserves stood at $1,287.1 billion in July, compared with $1,287.5 billion in the previous month.Japans Ministry of Finance: It conducted three currency intervention actions in April and May, buying yen.

Gold Price Prediction: XAU/USD nears $1,980 as USD Index extends losses in response to the Fed's dovish guidance

Daniel Rogers

Mar 23, 2023 14:48

269.png

 

In the Asian session, the gold price (XAU / USD) is gaining strength to surpass the immediate resistance of $1,980.00. As the US Dollar Index (DXY) resumed its decline and fears of a US banking crisis revived, demand for the precious metal increased.

 

As the Federal Reserve (Fed) has come extremely close to the terminal rate, which would be restrictive enough to bring down U.S. inflation to 2%, the USD Index is seeking to retest its six-month low below 102.000. Fed Chair Jerome Powell stated in his commentary that "additional policy tightening may be necessary."

 

Investors should be aware of the fact that the US banking crisis has bolstered the status of gold as a safe-haven asset. However, US Treasury Secretary Janet Yellen's reassurance of the safety of all bank deposits quelled concerns of a banking crisis.

 

As of Wednesday, when US Yellen stated that the government "is not considering insuring all uninsured bank deposits," the situation appears to have changed. This has also increased demand for United States government bonds. Yields on 10-year U.S. Treasuries have decreased to near 3.45%.

 

In the meantime, S&P500 futures have rebounded strongly after a steep decline on Wednesday, indicating an improvement in risk appetite. Nonetheless, caution still prevails as US banks' strict credit conditions will have a long-term impact. According to the Fed's commentary, the US banking system is solid and resilient, but US banks will be more cautious in their lending to households and businesses.


Suggestion