EUR/USD 1.16000
0.039%
Gold 4220.14
1.519%
Oil 59.392
0.687%
USD/JPY 156.145
-0.098%
GBP/USD 1.32418
0.018%
GBP/JPY 206.766
-0.068%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On November 29, the Israel Defense Forces (IDF) announced that it had designated a suburb of Bethlehem in the West Bank as a "closed military zone." This followed a violent attack by Israeli settlers that injured several Palestinians. The IDF stated that it received reports of "violent clashes" between Israelis and Palestinians, with both sides throwing stones at each other, and reports of gunfire directed at Palestinians. IDF troops and police were deployed to the scene, using riot control to disperse the crowd and declaring the area a "closed military zone." Several Israelis were injured in the incident but refused medical treatment. Israeli police have launched an investigation.Kuwait Aviation Authority: Kuwait Airways has completed all technical system updates for its Airbus A320 aircraft.On November 29th, the Wall Street Journal reported that last month in Miami Beach, three powerful businessmen—two Americans and one Russian—huddled around a laptop, ostensibly to draft a plan to end the Russia-Ukraine conflict. But according to sources, their project extended far beyond that. Privately, they were devising a path to reintegrate Russias $2 trillion economy into the international arena and allow American companies to reap the benefits before their European competitors. In the mansion, billionaire developer and current U.S. envoy, Witkov, was hosting Dmitriev, head of Russias sovereign wealth fund and Putins handpicked negotiator. Dmitriev practically dominated the drafting and revision of the document on the screen. Trumps son-in-law, Kushner, also arrived from his residence. Dmitrievs plan involved American companies utilizing approximately $300 billion in Russian central bank assets frozen in Europe for joint U.S.-Russian investment projects and a U.S.-led reconstruction effort in Ukraine. American and Russian companies could also collaborate on developing the Arctics rich mineral resources.American Airlines: As of 7 a.m. Central Time, the team has made significant progress in resolving the Airbus software issue, with 4 of the 209 affected aircraft still awaiting the update.Indian aviation regulator: IndiGo and Air India are expected to complete software fixes for the affected aircraft today.

Forecast for Gold Price: XAU/USD licks US inflation-related wounds near $1,700

Alina Haynes

Sep 14, 2022 11:39

 154.png

 

Gold price (XAU/USD) is under pressure near $1,700 as bears take a pause following the largest daily decline in two weeks due to US inflation. However, it should be noted that a lack of important data/events appeared to limit bullion's quick movements throughout Wednesday's Asian session.

 

Tuesday's US inflation statistics rekindled fears about the Federal Reserve's fast rate hike and exacerbated recession concerns. Also acting as factors for a decline in the XAU/USD are geopolitical concerns over China and Russia.

 

In August, the US Consumer Price Index (CPI) surpassed market expectations by increasing 8.3% year-over-year (YOY), compared to 8.8% previously. However, the monthly data increased to 0.1%, exceeding the -0.1% anticipated and 0.0% previous estimates. The core CPI, which excludes food and energy, likewise exceeded the 6.1% consensus and 5.9% prior to printing at 6.3% for the month in question.

 

Following the release of US inflation statistics, wagers on the Fed's next move became further aggressive, with a 75 basis point (bps) raise next week appearing nearly probable. There is a 25% possibility that the US Federal Reserve (Fed) will announce a complete 1% hike in the benchmark Fed rate at its meeting on September 21.

 

It should be mentioned that the yield inversion expanded after US inflation data and fueled recession concerns, which in turn weighed on the XAU/USD values due to the pair's reputation as a risk-barometer. However, following the release of the data, rates on 10-year US Treasury notes rose to 3.412% and those on 2-year bonds rose to 3.76%, from roughly 3.411% and 3.745%, respectively. In addition, the US stock market experienced its largest daily decline in over two years following the announcement of the US CPI, which thrilled metal bearish.

 

In addition to the rush toward deeper ties with China, US Vice President Joe Biden's efforts to raise China's troubles contribute to Sino-American tensions. In addition, worries that Russia will retaliate harshly after retreating from certain regions of Ukraine weighed on market mood and the price of gold.

 

A light schedule ahead of the US Producer Price Index (PPI) may keep XAU/USD on the precarious floor, but bears are likely to maintain control until Thursday's US Retail Sales for the month of August and Friday's preliminary reading of the Michigan Consumer Sentiment Index for September.

Suggestion