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Kremlin spokesman Dmitry Peskov said: "The Russian military is currently conducting a systematic attack on Ukraines military infrastructure. Ukraines defeat is looming daily, and Kyiv is fully aware of this. The Russian military is advancing along the entire front, and the dynamics of the special military operations are extremely favorable to Russia."The Turkish Foreign Ministry announced that Turkey will hold a meeting of its Strategic and Defense Committee, established under the Mecca Agreement, tomorrow. Foreign ministers, defense ministers, and military leaders from Saudi Arabia, Turkey, and Pakistan are expected to attend. The Istanbul talks will discuss international security and deepening cooperation in the defense industry.United Airlines (UAL.O): It will resume flights between Tel Aviv and San Francisco on March 27, 2027, with three flights per week.Russian officials say one person was killed in an attack by Ukraine on the Russian-controlled Luhansk region.On August 30th, Nick Timiraos, a vocal advocate for the Federal Reserve, wrote that Fed Chairman Warsh quelled some concerns about his inflation-fighting strategy, but also laid the groundwork for a potentially bigger test three weeks later. A Fed rate hike could anger the White House weeks before the midterm elections. Holding rates steady could reignite the doubts quelled by his speech. Two points in Warshs Friday speech particularly suggest a Fed rate hike next month: first, Warsh found it difficult to call current financial conditions restrictive; second, the relatively positive inflation data over the summer did not convince him that the underlying trend was improving. Prior to Friday, the Feds default stance was to hold rates steady unless the data was sufficient to support action. Former Fed Vice Chairman Cohn stated that Warshs speech reversed this logic. "He has changed his previous assumptions; now hell raise rates unless the data shows no need." This means the final decision will depend on developments before the September meeting, especially the August CPI data released on September 11th. Cohn stated that the Fed should not raise interest rates if the data indicates that no action is necessary; however, strong data could weaken the argument that inflation is falling toward the Feds 2% target.

Forecast for Gold Price: The XAUUSD crosses bearish area in consolidating markets

Alina Haynes

Nov 17, 2022 11:43

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Currently trading at $1,774.20, down 9.23%, the Gold price halted on Wednesday, gliding across the same bearish pattern as yesterday's $1,767.13 lows. The price of gold has maintained a tight consolidative range between $1,773.99 and $1,785.09 so far today. The precious metal is at a three-month high and continues lifted by a weaker dollar as investors anticipate that the Federal Reserve would moderate its aggressive interest rate hikes in response to a slew of inflation-related data.

 

Despite stronger-than-anticipated US Retail Sales, which have clouded the inflation outlook, the safe-haven dollar declined further on Wednesday. Both the US Consumer Price Index and the Producer Price Index missed estimates last week, which has weighed on the greenback. DXY, an index that compares the US dollar to a basket of international currencies, fell around 7% in November, with the majority of the decline occurring last Friday in response to inflation statistics. Gold has benefited from the lower US yield environment, as benchmark 10-year yields have been near their lowest levels since October 5. Rising interest rates diminish the allure of non-yielding bullion.

 

In addition to the Federal Reserve, geopolitics is once again shifting the needle in financial markets after being relegated to the background for some time. Following reports that a missile near the Polish-Ukrainian border killed two people, the price of gold climbed to its highest level since August 15. An inquiry is currently being conducted, but tensions were high. To date, however, the United States has seen nothing that contradicts Poland's early assessment that a missile that fell within Polish territory on Tuesday was most likely a Ukrainian air defense missile. This information was provided by US National Security Council spokesperson Adrienne Watson on Wednesday.

 

"Whatever the ultimate results may be, it is apparent that the ultimate party accountable for this awful incident is Russia, which fired a barrage of missiles on Ukraine with the express intent of targeting civilian facilities," he stated. The easing of tensions has reduced demand for both gold and the U.S. dollar.

 

Gold's positioning risks are still tilted to the upside, according to TD Securities analysts. "A series of significant trend reversal thresholds associated with strong short covering flows lie just above the $1800/oz mark. Consequently, the pain trade in the yellow metal has opportunity to expand, indicating that the return on patience is high for those wanting to short the current surge.

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