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On October 22, Peter Zoellner, the new chairman of the London Bullion Market Association (LBMA), called for the revival of gold futures trading in the UK, despite the failure of previous attempts to establish derivatives contracts on the $35 trillion in annual global physical gold trading capital. Zoellner stated that previous measures to launch gold futures contracts in London were premature, but added that having "two or three locations with good liquidity" would benefit the global gold market. He added that any decision would ultimately rest with the exchanges, which would structure and list such products. Gold trading in London is primarily conducted through bilateral "over-the-counter" physical transactions, and currently lacks a gold futures market. The London Metal Exchange (LME) launched a gold futures contract in 2017, but closed it five years later due to low trading volumes.A 5.9 magnitude earthquake struck Costa Rica.On October 22, the Financial Times reported that the Trump administration is intensifying its attacks on US trading partners over drug pricing, preparing a new investigation that could lay the groundwork for a new round of tariffs. Three people familiar with the matter said the upcoming investigation, conducted under Section 301 of the Trade Act of 1974, would examine whether US trading partners are underpricing drugs. Trump has repeatedly complained that other countries pay less for drugs than the US and has stated he will take trade action against countries that refuse to "be equal." The new US investigation could lead to tariffs on any product or commodity the White House chooses and would reignite global trade tensions, which had subsided after Trump rescinded some tariff threats and reached agreements with some countries.Reuters poll: 60% of analysts surveyed believe the Bank of Japan will raise interest rates to 0.75% in the fourth quarter.Swedish government: Ukrainian President Zelensky and Swedish Prime Minister will make statements on arms exports.

Gold Price Analysis: XAU/USD bulls assault $1,750 as market participants prepare for Jackson Hole

Alina Haynes

Aug 25, 2022 14:50

 截屏2022-08-24 下午3.50.19_1024x576.png

 

After a two-day rally, the gold price (XAU/USD) remains on the defensive at $1,752 during Thursday's Asian session. In doing so, gold reflects the market's nervousness in advance of significant data/events and in response to the mixed results of recently revealed information.

 

In spite of this, US Durable Goods Orders for July fell to 0.0%, compared to 0.6% projected and a revised up 2.2% prior estimate. Nondefense Capital Goods Orders excluding Aircraft, however, surpassed the 0.3% market consensus to reach 0.4%, up from 0.9% previously. Additionally, Pending Home Sales improved to -1.0% MoM in July, compared to -4.0% projected and -8.9% previously (revised down from -8.9%). Annually, Pending Home Sales declined by 19.9%, compared to the previous annual decline of 20%.

 

On the other hand, economic fears support the US dollar's safe-haven demand, as S&P Global Market Intelligence's Executive Director of Economic Research, Sara Johnson, said in a statement on Wednesday that global growth is expected to remain subdued in late 2022 and 2023, while inflation is anticipated to moderate over the next two years.

 

However, predictions that China will overcome its recessionary troubles and that Fed Chairman Powell will reiterate his cautious words at Jackson Hole appeared to have weighed on the DXY bulls. "Various Chinese official media organizations are defending the yuan following its recent fall, arguing that the country's robust exports could offset a stronger dollar and hawkish Federal Reserve rate hikes," Reuters reported on Wednesday. Due to China's role as one of the world's major gold consumers, gold traders are increasingly concerned about the dragon nation.

 

XAU/USD may experience a pullback if Fed Chair Jerome Powell surprises markets with a hawkish tone amid recession fears, given the current mixed market conditions and the US dollar's reluctance to re-establish its multi-year high.

 

The second edition of the US GDP for the second quarter will be added to the US Personal Consumption Expenditure (PCE) for the same period to beautify the calendar intraday. However, Jackson Hole will receive the most of the focus for new initiatives.

 

Despite recent inactivity, the gold price maintains the rebound above the prior resistance line from mid-April, suggesting more higher momentum towards a 10-week-old resistance line near $1,788.


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