EUR/USD 1.17268
0.243%
Gold 4759.54
-0.124%
Oil 90.663
-1.384%
USD/JPY 159.298
0.203%
GBP/USD 1.34677
0.244%
GBP/JPY 214.543
0.466%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
According to the Financial Times, UK financial regulators are conducting an urgent assessment of the risks of Anthropics latest AI model.On April 12th, Maybank senior strategist Fiona Lim stated that while the market may be somewhat disappointed by the lack of progress in US-Iran negotiations, this was not entirely unexpected. The US dollar may gain further upward momentum at the opening on Monday. Some Asian currencies, particularly those of net energy importers such as the South Korean won, Philippine peso, Japanese yen, and Thai baht, began to weaken last Friday and may continue to face pressure this week.On April 12th, Saxo Banks Chief Investment Strategist, Charu Chanana, stated that the failure of the US-Iran negotiations was a setback. For the market, this means the previous easing of tensions is likely to fade. Oil prices may rebound, risk sentiment will be dampened again, and the Strait of Hormuz, even without a complete closure, will remain a real choke point risk. However, this is not surprising given the significant differences in the two sides positions on nuclear safeguards and the Strait of Hormuz issue. For the US dollar, this means some renewed safe-haven support, but unless there is a new military escalation, a broad-based surge is unlikely. Gold may benefit from renewed geopolitical hedging demand, but the market is not yet fully back to the worst-case inflation shock scenario.Kremlin: Russia is prepared to sell natural gas to Europe if there is still a surplus in supply to "alternative markets".Kremlin: Russia currently has only 17% to 18% of Donetsk Oblast in Ukraine out of control.

Gold Price Prediction: XAU/USD seeks direction following Fed-inspired volatility; US Retail Sales to be monitored

Daniel Rogers

Dec 15, 2022 11:32

截屏2022-09-20 下午12.00.01.png

 

Gold price (XAU/USD) is hanging around $1,810.00 in the early Asian session after dramatic fluctuations in response to the Federal Reserve's interest rate decision and policy guidance (Fed). The precious metal fluctuated wildly within a range of $1,796 to $1,814 and is now extremely quiet as investors analyze Fed head Jerome Powell's remarks prior to making an informed decision.

 

The US Dollar Index (DXY) fell to a new six-month low of 103.49 as the Federal Reserve opted to proceed with a measured approach to future policy tightening. S&P500 closed Wednesday on a pessimistic note as the Fed's prediction of a higher terminal rate of 5.1% generated a danger of liquidity crunch in the economy, which may exacerbate recession risks. However, the Fed has supplied a diplomatic perspective on recession by stating, "No one knows if a recession will occur or not."

 

In the meantime, 10-year US Treasury rates have declined further to 3.48 percent as Fed monetary policy that is less aggressive has stimulated demand for US Treasury bonds. Thursday's release of U.S. Retail Sales figures will be closely monitored by investors moving ahead. The monthly Retail Sales data (Nov) is anticipated to decrease by 0.1% compared to the prior reading of 1.3% growth. A drop in retail demand will contribute to additional inflation data softening.

Suggestion