EUR/USD 1.10947
2.236%
Gold 3068.98
-2.017%
Oil 66.297
-5.854%
USD/JPY 145.868
-2.286%
GBP/USD 1.31629
1.202%
GBP/JPY 192.012
-1.057%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Morgan Stanley: It is currently expected that the Federal Reserve will not cut interest rates in 2025, while it was previously expected to cut interest rates by 25 basis points in June.Crude oil futures are erasing gains from recent weeks as the rollout of Trump’s “reciprocal tariffs” looks worse than many expected, raising concerns that it will slow the global economy and oil demand. “U.S. consumers are in a tough spot, and overseas manufacturers are in the same boat, which is bad for demand in an already troubled environment,” TP ICAP’s Scott Shelton said in a report.U.S. imports in February were $401.1 billion, compared with $401.2 billion in the previous month.U.S. exports in February were $278.5 billion, compared with $269.8 billion in the previous month.On April 3, Melanie Debono, a macro analyst at Panson, said that Switzerlands future inflation trend may depend on the countrys retaliatory measures against US tariffs. The Trump administration imposes a uniform tariff of 31% on all goods imported from Switzerland, which will have a suppressive effect on inflation if it seriously affects economic growth by hitting exports and investment. The United States may still impose tariffs on Switzerlands main export products, medicines, but so far, the United States has not imposed tariffs on Swiss medicines. But Debono pointed out that a major retaliation from Switzerland would mean that imported inflation would rise more than currently expected. Switzerland currently does not impose tariffs on manufactured goods, so the United States does not either. The United States reciprocal tariffs are partly because it believes that Switzerland is a currency manipulator.

Forecast for Gold Price: XAU/USD fails to surpass $1,930 as USD Index recovers ahead of Fed policy

Alina Haynes

Feb 01, 2023 15:27

154.png 

 

During the Asian session, the gold price (XAU/USD) failed to reclaim the crucial barrier of $1,930.00, prompting a strong price correction. The precious metal's upward momentum has diminished as the US Dollar Index (DXY) shows signs of recovery after falling to around 101.70. The USD Index is gaining traction as investors become nervous ahead of the Federal Reserve's interest rate announcement (Fed).

 

As Fed chair Jerome Powell is anticipated to significantly slow the pace of interest rate hikes, the Gold price correction appears to be moderate. In the meantime, S&P500 futures have retraced some of Tuesday's gains as investors anticipate that additional Fed rate hikes will heighten recession fears in the United States. Yields on 10-year US Treasuries have fallen below 3.52 percent.

 

In addition to the Fed's monetary policy, the ADP Employment data and ISM Manufacturing PMI will be of the utmost importance. According to the consensus, the US economy added 170,000 new jobs in January, down from the previous estimate of 235,000. While it is anticipated that the Manufacturing PMI will decrease to 48.0 from 48.4, which was announced earlier,

 

For a longer horizon, Reuters reported that the Fed's decision to raise interest rates would limit the price of gold. According to a survey by Reuters, the average price of gold will be $1,852.50 in 2023 and $1,880 in 2024.


Suggestion