EUR/USD 1.16196
-0.050%
Gold 4439.47
-0.748%
Oil 88.127
-1.688%
USD/JPY 155.921
0.080%
GBP/USD 1.35164
-0.060%
GBP/JPY 210.754
0.028%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Nick Timiraos, the Feds mouthpiece, has expressed continued dissatisfaction with Trumps tendency to trigger stock market corrections with any evidence of an overheated economy in economic reports. He reiterated his call for lower interest rates: "The Fed Board and its excellent new leadership must be wise—this time with a bit of patriotism."On September 4th, Douglas Porter, chief economist at the Bank of Montreal, stated that after a period of significantly stronger-than-expected employment data, Canada appears poised for a reality test. He noted that while the August jobs report was undoubtedly weak, it was far from surprising, reflecting in part the continued decline in the labor force. He believes that the slowdown in employment and average wage growth will further reinforce the Bank of Canadas strategy of maintaining unchanged interest rates and help alleviate excessively high market expectations for rate hikes. In August, Canadas overall employment decreased by 41,700, ending a previous series of strong job growth, while the unemployment rate remained unchanged at 6.4%.U.S. Treasury Secretary Bessant: The employment data shows that the (U.S.) economy is not solely driven by the AI construction boom. Canada lost over 40,000 jobs, while our employment data shows a significant increase.September 4th - When inflation is high and the labor market is tight (i.e., there are more job openings than job seekers), employees typically expect higher wages to offset the high cost of living. This is one of the key reasons why the Federal Reserve ensures stable inflation expectations. Fridays jobs report showed that average hourly earnings rose 0.3% month-over-month, while the year-over-year growth rate slowed to 3.1% from 3.2%. A report from Oxford Economics stated, "The Federal Reserve can be reassured that the labor market is not a source of inflationary pressures."U.S. Treasury Department: Latest U.S. sanctions related to Iran target three entities.

Gold Price Prediction: XAU/USD will settle below $1,750 as attention switches to Jackson Hole

Alina Haynes

Aug 22, 2022 14:47

 130.png

 

After reaching a monthly high of $1,807.96, the gold price (XAU/USD) has dropped for five consecutive trading sessions. The price of gold fell below $1,750.00 for the first time since August. As investors drastically reduce their long positions in gold assets in anticipation of hawkish direction from the Federal Reserve, the price is expected to settle below the aforementioned crucial mark (Fed).

 

Observing contradictory comments in the Fed's minutes on policy direction weakened the gold rise earlier. James Bullard, president of the Federal Reserve Bank of St. Louis, proposed an additional 75 basis point (bps) rate hike to achieve price stability sooner. While a few Fed members have issued a statement on lowering the rate of interest rate hikes to protect the economy from future inflation threats, the majority of Fed policymakers have not.

 

As Chinese President Xi Jinping and Russian President Vladimir Putin have confirmed their attendance at the G20 summit in November, geopolitical concerns are also exerting a significant downward pressure on gold prices. This may renew Moscow's assault on humanity in Ukraine.

 

On the front of economic data, investors await the release of the US Durable Goods Orders report, which is anticipated to decrease to 0.6% from the previous release's 2%. When the US economy has previously shown a flat US core Consumer Price Index (CPI), a fall in economic data is not beneficial for the US dollar index (DXY).

 

On an hourly scale, gold prices have fallen to $1,744.70, which is close to the 50% Fibonacci retracement (set from July 21's low of $1,680.91 to August 10's high of $1,807.93). The 20-period and 50-period Exponential Moving Averages (EMAs) at $1,751.90 and $1,757.50, respectively, are falling swiftly, adding to downward filtering. In the meantime, the Relative Strength Index (RSI) (14) oscillates in a negative band of 20.00-40.00, indicating that further declines are likely.


Suggestion