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Before the U.S. stock market opened, Tesla (TSLA.O) fell 1.2%, Meta Platforms (META.O) and Intel (INTC.O) fell more than 0.6%.Germanys DAX30 index opened up 44.76 points, or 0.20%, to 22,984.15 points on March 17 (Monday); Britains FTSE 100 index opened up 13.67 points, or 0.16%, to 8,646.00 points on March 17 (Monday); Frances CAC40 index opened up 2.65 points, or 0.03%, to 8,030.93 points on March 17 (Monday); Europes STOXX 50 index opened down 3.23 points, or 0.06%, to 5,400.95 points on March 17 (Monday); Spains IBEX35 index opened up 20.89 points, or 0.16%, to 13,008.09 points on March 17 (Monday); Italys FTSE MIB index opened up 20.70 points, or 0.05%, to 38,676.00 points on March 17 (Monday).On March 17, local time, the controversy over the 100 billion euro fiscal reform plan in the German Bundestag continued to escalate. Several members of the German Bundestag submitted an emergency application to the German Federal Constitutional Court in an attempt to prevent the vote originally scheduled for March 18. They believe that the government has not provided enough time for discussion and that the adjustment of key clauses has been too hasty to be fully reviewed. Among them, some members of the German Bundestag have raised objections to the German Federal Constitutional Court for the second time and requested a postponement of the vote. In addition, Sarah Wagenknecht, leader of the left-wing party Sarah Wagenknecht Alliance, called on members of the parliament who oppose the fiscal plan to take action to prevent the old parliament from passing the bill before the new parliament convenes. According to the German Basic Law, if at least one-third of the members request that the new federal parliament must be convened immediately, the old parliament will lose its legislative power. At present, the far-right German Choice Party and the Left Party in the new parliament have a total of 216 seats, exceeding the statutory one-third threshold. This means that if they jointly apply, the special meeting of the old parliament will not be able to continue.March 17, UBS Group became the latest investment bank to raise its gold price forecast as the likelihood of a protracted global trade war increases. Analysts expect this situation to continue to drive investors to buy more gold, the ultimate safe-haven asset. Analysts including Wayne Gordon and Giovanni Staunovo said in a report on Monday that as the escalating trade conflict highlights the role of gold as a store of value in uncertain times, gold will trade at $3,200 an ounce in the next four quarters, higher than the banks previous long-held forecast of $3,000 an ounce. The bank pointed out that U.S. President Trumps plan to impose broad reciprocal tariffs and additional industry-specific tariffs on April 2 is an imminent risk event that may stimulate continued safe-haven demand across the market. At the same time, gold prices will also benefit from the deterioration of the U.S. economic outlook, and traders currently expect the Federal Reserve to cut interest rates further as concerns about a recession grow. "In other words, what we are seeing is a shift from a Trump put to a Fed put," the analysts said. “We continue to believe that allocating around 5% of a balanced U.S. dollar portfolio to gold is optimal from a long-term diversification perspective.”On March 17, Ji Xiaoling, the market inspection commissioner of the State Administration for Market Regulation, said that we will strictly carry out supervision and law enforcement to ensure that consumers can consume safely and understand consumption. Safety is the basic premise of rest assured consumption, and integrity is an important guarantee for rest assured consumption. We will carry out special rectification actions against market problems such as illegal food additives, counterfeiting, price fraud, false propaganda, etc., which are strongly reflected by the masses, and strengthen the supervision of the recall of defective products to make the market safer, more orderly and standardized. In recent years, market supervision departments have continued to carry out "iron fist" actions in the field of peoples livelihood, and have concentrated on investigating and punishing a number of illegal and irregular behaviors such as illegal food additives, false advertising, and cheating in gas pump metering, which have formed a strong deterrent to illegal operators. This year, we will continue to deploy and carry out the "Guardian Consumption" Iron Fist Action, so please continue to pay attention.

Gold varies between $1,700 and $1,600 a week before the Fed meeting

Haiden Holmes

Jul 21, 2022 11:12

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Even without Fed officials continually bombarding the airwaves with suggestions of a rate hike, gold's position above $1,700 remains shaky.


In post-settlement trading on Wednesday, gold futures for August delivery on New York's Comex slipped again below $1,700 an ounce, a week before the central bank's announcement on July interest rates, after finishing the official session just above the crucial psychological support.


August was trading at $1,698.15, down $12.55, or 0.7%, at 2:16 PM ET (18:16 GMT).


Following a daily fall of $10.50, or 0.6%, it closed at $1700.20, putting the session close to the $1700 mark.


Despite Fed officials' normal 10-day speech restriction leading the July 27 rate decision, gold bulls have been unable to propel the market significantly higher from last week's 11-month low of $1,695.


With the exception of the dollar's first rebound in over a week, although to levels well below last week's 20-year highs, no major reason contributed to gold's resumption of its drop on Wednesday.


Phillip Streible, precious metals strategist at Blueline Futures in Chicago, observed, "There was consensus that if the dollar rebounds, gold might fall below $1,700, and I believe that's what you're witnessing."


The Dollar Index, which compares the U.S. dollar to six other major currencies, revisited 2002 highs last week as the US Consumer Price Index for the year to June reached four-decade highs of 9.1%. The ensuing dollar increase prompted money market traders to speculate on an unprecedented 100-basis-point Fed rate hike in July. Since then, the current consensus forecasts a 75-basis-point increase in interest rates.


In addition to the absence of Fed comments, U.S. macroeconomic data have been especially poor this week, providing traders more leeway with regard to direction, fund flows, and trading volumes. Although gold bulls had an equal chance of seizing the initiative, their passivity has seemed to constitute a greater proportion of their bravery.

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