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On December 9th, according to futures market news: 1. WTI crude oil futures trading volume was 697,870 lots, an increase of 48,746 lots from the previous trading day. Open interest was 1,890,285 lots, a decrease of 28,250 lots from the previous trading day. 2. Brent crude oil futures trading volume was 111,046 lots, an increase of 15,271 lots from the previous trading day. Open interest was 221,246 lots, a decrease of 98 lots from the previous trading day. 3. Natural gas futures trading volume was 910,202 lots, a decrease of 197,114 lots from the previous trading day. Open interest was 1,569,215 lots, an increase of 476 lots from the previous trading day.According to documents provided to the Hong Kong Stock Exchange, JD Industrials Hong Kong IPO was priced at HK$14.10 per share, raising HK$2.98 billion.Jefferies raised its price target for PepsiCo (PEP.O) from $163 to $164.Barclays predicts that the Federal Reserve will cut interest rates by 25 basis points to a range of 3.5% to 3.75% at its policy meeting this week, and the post-meeting statement is expected to include hawkish language, suggesting a pause in rate cuts in January. The bank currently maintains its forecast of 25 basis point rate cuts in March and June of next year. Barclays believes that the new summary of economic projections may show little change in economic forecasts, while the dot plot will reflect one 25 basis point rate cut each in 2026 and 2027, with the median long-term interest rate forecast remaining at 3%.Market news: German lawmakers are set to approve a record €52 billion defense order.

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

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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.


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