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February 14th - Gold and silver futures are poised for gains this week. The near-month gold contract rose 1.4% this week, marking its eighth consecutive week of gains in the past ten weeks. The near-month silver contract rose 1.5% this week, ending a two-week losing streak and marking its eleventh consecutive week of gains in the past 15 weeks. Antonio Di Giacomo of XS.com stated in a report that despite volatility in the precious metals market, demand for safe-haven assets remains, supporting the rise in gold and silver prices.Amazon-backed nuclear energy company X-Energy Reactor Co. has received approval from U.S. regulators for its nuclear reactor fuel.Lawyers say a Pennsylvania jury found Johnson & Johnson (JNJ.N) liable for a woman’s diagnosis of ovarian cancer.On February 14th, Polish Deputy Prime Minister and Foreign Minister Sikorski stated in an interview in Munich, Germany, on February 13th that Europe, not the United States, is paying the price for the Russia-Ukraine conflict, therefore "we have the right to comment on the relevant agreements." Sikorski stated that the United States is no longer paying for supplies provided to Ukraine, and Europeans are bearing the costs. Despite Europes financial and military support for Ukraine, the United States is profiting from the war by selling weapons to Ukraine through European countries. Sikorski emphasized that the US presence in Europe will continue, but will be more limited and strategic. He stated, "We Europeans must deploy ground troops," and Germany has amended its constitution to achieve this goal; other countries must also take action to fulfill the commitments made at subsequent NATO summits.US President Trump: Hopes to reach an agreement with Iran.

Gold Price Prediction: XAU/USD anticipates additional gains ahead of China and U.S. inflation

Alina Haynes

Jan 11, 2023 11:54

Gold price (XAU/USD) demonstrates usual pre-data concern as it approaches $1,875 on Wednesday morning, exploring a three-day rally around the highest levels since May 2022. In doing so, gold demonstrates the market's faith in the traditional safe-haven, even if the US Dollar recovers from its multi-day low. The uncertainty surrounding the next steps of the US Federal Reserve (Fed) and the pessimistic economic forecasts of the World Bank (WB), not to mention cautious optimism towards China, may be to blame.

 

Federal Reserve (Fed) Chair Jerome Powell's remarks at Riksbank's International Symposium on Central Bank Independence were unable to provide additional clarification on the US central bank's monetary policy outlook, which prompted a stampede for gold in the face of uncertainty. In his most recent public appearances, the policymaker lauded the US central bank's latest steps while emphasizing the Fed's independence and lack of commitment to climate control. Notably, Federal Reserve Governor Michelle Bowman seemed hawkish when she stated that additional rate hikes are required to combat excessive inflation, which should have pressured the XAU/USD bulls in the aftermath.

 

Notably, the recent softening of hawkish bets on the Fed's next moves, as well as lower US data, appear to keep gold investors optimistic, despite the Federal Reserve's efforts to defend its tight monetary policy. Tuesday, the US NFIB Business Optimism Index for December fell to its lowest level since 2013 if various anxieties caused by the worldwide Covid wave are disregarded. In addition, US Wholesale Inventories for November stayed constant at 1.0% growth.

 

Alternatively, a rebound in the US Dollar Index (DXY) from the seven-month low appears to pose a threat to the Gold price, due to the inverse link between the XAU/USD and the dollar's index against the six main currencies. Tuesday marked the conclusion of a two-day downturn for the DXY as it rebounded from the multiday low to settle at 103.30. In doing so, the US Dollar Index tracked the firmer US 10-year Treasury note yields, which increased 10 basis points (bps) to 3.61 percent, falling one basis point (bp) to 3.60 percent at the latest.

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