EUR/USD 1.17857
-0.177%
Gold 4828.39
-2.765%
Oil 62.585
-2.564%
USD/JPY 156.636
-0.152%
GBP/USD 1.35300
-0.895%
GBP/JPY 211.933
-1.023%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
February 5th - In a report, Sanjay Raja of Deutsche Bank Research stated that the prospect of a Bank of England rate cut has significantly strengthened, but the pace of cuts may be relatively slow. The Bank of England decided on Thursday to keep interest rates unchanged at 3.75% by a 5-4 vote, and hinted at possible further rate cuts in the coming months. Raja said, "The risks remain skewed towards a slower pace of rate cuts, but we remain confident that the Bank of England will cut rates twice this year."U.S. Treasury Secretary Bessenter: Warsh is fully qualified to be the Federal Reserve Chairman.U.S. Senate Majority Leader Thune: Democrats demands for funding to the Department of Homeland Security are "unrealistic".U.S. Treasury Secretary Bessant testified before the Senate Banking Committee, reiterating his testimony from the House Financial Services Committee the previous day.February 5th - U.S. job openings unexpectedly fell to their lowest level since 2020 in December, while layoffs rose slightly, further indicating weak demand for labor. Data from the Bureau of Labor Statistics on Thursday showed that job openings fell to 6.54 million in December from a revised 6.93 million in November, below market expectations. The decline in job openings was primarily driven by professional and business services and retail, while the increase in layoffs reflected larger-scale layoffs in the transportation and warehousing sectors. Hiring increased somewhat, but remained at a low level overall. The data suggests that businesses remain cautious about the pace of hiring as they assess their workforce size and the outlook for economic activity. This data also reinforces the Federal Reserves assessment that wage growth is not a source of inflationary pressures. The report showed that the ratio of job openings to job losses was 0.9 in December, a measure closely watched by the Federal Reserve to gauge the balance of labor supply and demand. This ratio peaked at 2 to 1 in 2022.

After a corrective move, the gold price should find support around $1,650, and talk of the US gross domestic product (GDP) is making the market excited

Alina Haynes

Sep 29, 2022 11:56

 134.png

 

After a massive upswing, the gold price (XAU/USD) is correcting in a healthy way during the Tokyo trading session. As the downward bias is not supported by momentum, the precious metal should attract strong buying interest near the $1,650.00 support level. Thus, after the correction ends, the precious metal will continue climbing.

 

Gold prices have dropped slightly since the US dollar index has shown signs of weakness (DXY). The DXY fell after it was unable to maintain a price above the key resistance level of 144.50. To sum up, the DXY appears to be nearing its peak, which coincides with the Federal Reserve's target of 4.6% for the overnight rate of interest (Fed).

 

After analyzing the Fed's current interest rate hike velocity, it is important to remember that the Fed's peak interest rate is not far from the present interest rate of 3.-3.325%. Until the Fed detects a prolonged softening in price pressures, the terminal rate is likely to remain at 4.6% for a while longer.

 

The US Gross Domestic Product (GDP) figures will be closely monitored by investors on Thursday. According to the early forecasts, the annualized GDP in the United States will continue its downward trend by 0.6% in the third quarter.

 

Gold is falling on an hourly chart, and it is getting close to the horizontal support at $1,649.83, which was set from Monday's high. Since the price of gold is falling steadily, it is likely to take advantage of the horizontal support described above. A reversal of polarity will be indicated, and the shiny metal will start to act more impulsively.

 

Short-term buyers have been able to keep gold prices above the 50-period Exponential Moving Average (EMA) at $1,641.58. Although gold has fallen below the 200-day exponential moving average (EMA) at $1,655.00, it is likely to regain that level in the near future.

 

In the meantime, the Relative Strength Index (RSI) (14) is trending upwards within a bullish range of 60.00-80.00, suggesting further gains. The momentum oscillator may also find support near 60.00.


Suggestion