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1. All three major U.S. stock indexes closed lower. The Dow Jones Industrial Average fell 0.47% to 47,885.97 points, the S&P 500 fell 1.16% to 6,721.43 points, and the Nasdaq Composite fell 1.81% to 22,693.32 points. Caterpillar fell more than 4%, and Nvidia fell nearly 4%, leading the decline in the Dow. The Wind U.S. Tech Big Seven Index fell 2.03%, Tesla fell more than 4%, and Google fell more than 3%. Most Chinese concept stocks fell, with 21Vianet and NIO falling more than 3%. AI-related stocks were generally under pressure as investors weighed the latest U.S. economic report. 2. European stock indices closed mixed. The German DAX index fell 0.02% to 24,072.25 points, the French CAC40 index fell 0.25% to 8,086.05 points, and the UK FTSE 100 index rose 0.92% to 9,774.32 points. Both the German and French indices saw slight declines, influenced by pressure on technology stocks and adjustments to the EUs fuel vehicle policy, resulting in a generally cautious market. UK stocks rose as inflation fell to an eight-month low, reinforcing expectations of interest rate cuts. 3. US Treasury yields were mixed. The 2-year Treasury yield rose 0.43 basis points to 3.483%, the 3-year yield remained unchanged at 3.528%, the 5-year yield rose 0.36 basis points to 3.698%, the 10-year yield rose 1.36 basis points to 4.153%, and the 30-year yield rose 1.72 basis points to 4.827%. 4. Trump ordered a blockade of Venezuelan oil tankers, with prices reported at $56.74 per barrel; Brent crude oil futures rose 2.85% to $60.6 per barrel. 5. International precious metals futures generally closed higher, with COMEX gold futures rising 0.90% to $4371.40 per ounce and COMEX silver futures rising 4.92% to $66.44 per ounce. Federal Reserve officials issued a series of cautious statements, US economic data was complex, and geopolitical tensions in Europe affected market risk aversion. 6. London base metals rose across the board. LME tin rose 3.05% to $42,275.00/ton, LME copper rose 1.30% to $11,742.50/ton, LME aluminum rose 1.03% to $2,906.00/ton, LME zinc rose 0.99% to $3,071.50/ton, LME lead rose 0.98% to $1,961.00/ton, and LME nickel rose 0.72% to $14,365.00/ton.U.S. cannabis stocks rose across the board in after-hours trading, with Tilray Brands up over 4%, Canopy Growth up nearly 7%, and Aurora Hemp up over 2%. Reports indicate that Trump plans to sign an executive order on Thursday to reclassify cannabis.The local governor said the attack in Ukraine damaged a ship in the port of Rostov-on-Don in southern Russia, resulting in the deaths of some of the crew.Documents show that Nvidia (NVDA.O) director Harvey Jones sold 250,000 shares of the company’s common stock on the open market on December 15 at an average price of $177.30.On December 18, SenseTime (00020.HK) announced on the Hong Kong Stock Exchange that on December 18 (before the trading session on the Stock Exchange), the company entered into a placing agreement with the placing agent. The placing agent has conditionally and individually agreed to use its best efforts to procure not less than six placees to subscribe for 1,750,000,000 placing shares at a placing price of HK$1.80 per placing share (a discount of 8.63%). The total proceeds from the placing are expected to be HK$3.15 billion.

Gold Price Prediction: XAU / USD will continue to fluctuate above $1,900 despite a decline in US Inflation

Daniel Rogers

Mar 15, 2023 11:43

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Gold price (XAU / USD) is not in danger despite U.S. inflation figures meeting expectations. Since Monday, the precious metal has been fluctuating continuously between $1,895 and $1,913. The release of the US Consumer Price Index (CPI) failed to produce a significant reaction in the Gold price; however, the upside bias appears to be solidified as wagers on lesser rate increases from the Federal Reserve (Fed) have increased.

 

The US Dollar Index (DXY) is protecting the critical support at 103.50, but it appears vulnerable to further losses as investors' risk appetite has dramatically increased. As market participants purchased S&P500 futures in response to higher odds of a smaller rate hike from Fed chair Jerome Powell, a likely recession in the US economy was postponed, signaling an uptick in optimism.

 

Contrary to the risk-on sentiment, demand for US Treasury bonds remained weak, causing 10-year US Treasury yields to rise above 3.68 percent.

 

The headline As anticipated, the US CPI increased by 0.4% on a monthly basis, and the annual figure decreased from 6.4% to 6.0%. In addition, the core CPI, which excludes crude and food prices, decreased to 5.5% from 5.6% previously. The Fed appears to be pleased with the persistence of a declining trend in US inflation.

 

In the future, investors will closely monitor the US Retail Sales (Feb) data. Monthly Retail Sales data is anticipated to decline by 0.3% compared to the previous release of a 3.0% increase. This indicates that the consumer spending rebound is over and the Fed is on course to achieve its inflation target of 2%.