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November 3rd - A survey shows that German manufacturing showed almost no signs of recovery in October, with production growth slowing again. While output continued to grow, the pace slowed from the 42-month high reached in September, primarily driven by investment goods manufacturing. New orders rebounded slightly after declining in September, achieving a minor recovery, although export sales remained weak, particularly to Asia and the United States. "German manufacturing remained stagnant in October," said Niels Müller, an economist at Commerzbank Hamburg. "Insufficient demand and continued uncertainty continued to drag down the entire sector." The survey showed that output prices rose slightly for the first time in six months, mainly driven by the consumer goods sector; meanwhile, input prices continued to decline, but at the smallest rate in seven months. Furthermore, manufacturing employment fell for the 28th consecutive month, with companies continuing to freeze hiring due to limited capacity constraints. Business expectations for future output fell to their lowest level since December, with concerns about reduced order backlogs and high costs continuing to dampen market confidence.The final reading of the Eurozone manufacturing PMI for October was 50, in line with expectations and the previous reading.The Hungarian forint rose to 387.55 against the euro, its highest level since May 2024.Germanys final October manufacturing PMI was 49.6, in line with expectations and unchanged from the previous month.Morgan Stanley raised its price target for AbbVie (ABBV.N) from $255 to $261.

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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