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The US representative to the United Nations stated that any easing of sanctions on Iranian oil would be "very short-lived" and limited in duration.March 21 – According to the Financial Times, the European Commission has urged member states to lower their natural gas storage targets and adopt a gradual approach to replenishing reserves in order to alleviate market demand pressures. This comes after the war with Iran impacted key suppliers and triggered a surge in energy prices. EU Energy Commissioner Jorgensen instructed EU energy ministers not to rush to replenish their depleted gas reserves in the face of supply shortages, but to utilize flexibility to reduce demand from households and industry. Member states should reduce their gas injection targets at 80% capacity as early as possible during the injection season, 10 percentage points lower than the official EU target, to provide certainty and assurance to market participants. He suggested that countries begin replenishing reserves gradually to avoid a late-summer buying spree that could put pressure on the market, while postponing the deadline for meeting storage targets to December 1st. This is a month later than the deadline stipulated in legislation passed after the Russia-Ukraine conflict.According to the Financial Times, EU Energy Commissioner Jorgensen said that EU member states should reduce their gas injection targets for gas storage facilities to 80% of capacity, 10 percentage points lower than the official EU target.Irans Islamic Revolutionary Guard Corps: The 70th wave of retaliatory strikes against U.S. and Israeli interests in the Gulf region and elsewhere has targeted more than 55 locations.Japanese Prime Minister Sanae Takaichi: Going forward, we will actively pursue strong diplomacy to maximize Japans national interests and create world peace and prosperity.

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

Alina Haynes

Aug 22, 2022 14:47

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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.


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