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Japan auctioned 30-year government bonds, with the lowest price at 92.98 and the average price at 92.98. The spread was 0.18, compared to the previous value of 0.15.Japans 30-year government bond auction had a bid-to-cover ratio of 3.31, the lowest level since June.On September 4, JPMorgan analyst Patrick Jones said that the Federal Reserves interest rate cuts that meet or exceed expectations should prompt further inflows into gold ETFs, pushing gold prices to around $3,675 per ounce by the end of the year. On this basis, gold prices should reach $4,000 in the second quarter of next year and are expected to soar to $4,250 by the end of 2026, especially if the Trump administrations attempt to remove Federal Reserve Governor Cook is successful.Mark Cabana, head of interest rate strategy at Bank of America, said the Fed is likely to cut interest rates to at least 3%. The market is underestimating the range of potential outcomes where the Fed could cut interest rates below 3%.On September 4th, Bocom International issued a report, raising its target price for NIO (09866.HK) in Hong Kong to HK$62.7 and maintaining a "buy" rating. NIOs revenue for the second quarter of 2025 was approximately RMB 19.01 billion, a 9% year-on-year increase and a 57.9% quarter-on-quarter increase. Automotive revenue was approximately RMB 16.3 billion, in line with market expectations. The company provided optimistic guidance for the third quarter, projecting deliveries of 87,000–91,000 vehicles and record-breaking revenue of RMB 21.8–22.9 billion, primarily driven by strong sales of the new L90. Looking ahead to the fourth quarter, NIO aims to achieve combined monthly sales of approximately 50,000 vehicles for NIO and Ledao, with a combined gross profit margin of 17%–18%. The bank raised its 2025 sales forecast for NIO to 340,000 vehicles and revenue by 17.5% to RMB 99.5 billion, primarily reflecting strong sales expectations for the L90 and ES8. The market believes the focus will be on the sustainability of marginal improvements, whether cost reductions will meet market expectations, and whether the company will achieve profitability in the fourth quarter. The bank believes that the sales recovery will boost market confidence and be conducive to the subsequent release of new cars and subsequent financing.

Forecast for Gold Price: XAU/USD edges lower on a stronger USD and Fed rate rise worries

Alina Haynes

Sep 05, 2022 16:23

截屏2022-06-07 下午5.15.32.png 

 

Gold dips lower on the first trading day of the week, erasing a portion of Friday's substantial gains. The XAU/USD is on the defensive during the early European session, but lacks follow-through selling and has thus far managed to maintain its position above the $1,700 round-figure level.

 

On Monday, the US dollar reaches a fresh 20-year high, which turns out to be a significant factor imposing downward pressure on dollar-denominated gold. Despite Friday's delivery of a mixed US employment data, a growing consensus that the Fed will adhere to its aggressive policy tightening course continues to support the dollar. In fact, the markets are putting in a larger likelihood of a 75-bps rate hike at the September 20-21 FOMC meeting.

 

Recent hawkish remarks by various Fed members reiterated the bets, signaling that interest rates are likely to continue climbing until inflation is much closer to the 2% target. In addition, it is anticipated that the Reserve Bank of Australia, the European Central Bank, and the Bank of England would continue to hike interest rates. This is regarded as an additional component that contributes to the diversion of gold flows away from non-yielding gold.

 

In addition, indications of equities market stability appear to diminish demand for traditional safe-haven gold. However, mounting concerns about a more severe economic crisis should temper any euphoria. This, coupled with relatively low trading volumes due to the Labor Day holiday in the United States, may discourage dealers from taking aggressive wagers on gold. This necessitates vigilance prior to positioning for additional losses.


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