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On February 21, Paul Ashworth, chief economist for North America at Capital Economics, stated that the Trump administration has several other ways to implement trade barriers, potentially resorting to Section 122 of the Trade Act of 1974 or invoking Section 338 of the original Smoot-Hawley Tariff Act of 1930. Regarding refunds, Ashworth estimated the amount would reach approximately $120 billion, representing 0.5% of GDP. Justice Brett Kavanaugh, who wrote the main dissenting opinion on the ruling, noted that "this process is likely to be a chaotic affair, as acknowledged in the oral arguments."February 21st - Ian Lingen, Head of U.S. Interest Rate Strategy at BMO Capital Markets, stated that market participants largely anticipated the Supreme Courts ruling, so the limited reaction in the U.S. interest rate market was not surprising. James Assy, Portfolio Manager at Marshall Investment Management, said the reaction has been quite mild so far. The market is unsure what to do. The real big question would have been any talk of refunds. I think this news is slightly bearish for U.S. Treasuries. This is a short-term negative for the budget, so it should be bad for Treasuries. But its really hard to see how this will actually work – its very complex.The German DAX 30 index closed up 231.37 points, or 0.92%, at 25249.35 on Friday, February 20th; the UK FTSE 100 index closed up 63.16 points, or 0.59%, at 10690.20 on Friday, February 20th; and the French CAC 40 index closed up 116.71 points, or 1.39%, at 8515.49 on Friday, February 20th; the Euro... The Stoxx 50 index closed up 70.58 points, or 1.16%, at 6130.20 on Friday, February 20; the Spanish IBEX 35 index closed up 162.72 points, or 0.90%, at 18180.22 on Friday, February 20; and the Italian FTSE MIB index closed up 675.28 points, or 1.47%, at 46469.50 on Friday, February 20.The Federation of German Industries (BDI) stated (regarding the US Supreme Courts tariff ruling) that, with Berlins support, the EU should promptly engage with the US to clarify the impact of the current ruling on the EU-US trade agreement.The World Trade Organization declined to comment on the U.S. Tariff Courts ruling.

Gold Price Prediction: XAU/USD tests $1,880 as the US Dollar retreats in advance of Fed Chair Powell's speech

Daniel Rogers

Feb 07, 2023 15:38

 截屏2022-06-07 下午5.15.00.png

 

During early Tuesday trading, the gold price (XAU/USD) gains bids to retest the intraday high near $1,876 while printing a two-day rise.

 

In doing so, the precious metal extends its recovery from a monthly low at the start of the week, as the US Dollar's weakness combines with cautious optimism in the market to favor XAU/USD bulls. However, apprehension in front of Federal Reserve Chairman Jerome Powell and US President Joe Biden's State of the Union (SOTU) remarks appears to be challenging metal buyers recently.

 

The modestly optimistic feeling could be attributed to Treasury Secretary Janet Yellen and President Joe Biden's remarks that pushed back US recession fears. In a similar vein, US President Joe Biden's remarks that "the balloon incident did not damage US-China relations" appeared to allay Sino-American concerns.

 

On the other hand, hawkish Fed comments appear to support US Treasury bond yields and the US Dollar. In an interview with Bloomberg, Federal Reserve Bank of Atlanta President Raphael Bostic stated, "The robust job market presumably suggests 'we have a bit more work to do.'" Notably, the stronger US jobs report and activity statistics for January rekindled the Fed's hawkish stance last Friday, but a lack of directions appeared to test the USD bulls subsequently.

 

In this environment, S&P 500 Futures post modest gains, as US Treasury bond rates struggle to extend their two-day recovery from the monthly low. Observe that the US Dollar Index (DXY) has likewise retreated from the one-month peak it reached the day before amid lackluster market conditions.

 

Gold traders should focus on Fed Chair Powell's ability to compliment the most recent good US data as well as US President Biden's State of the Union address.


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