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On October 22, Peter Zoellner, the new chairman of the London Bullion Market Association (LBMA), called for the revival of gold futures trading in the UK, despite the failure of previous attempts to establish derivatives contracts on the $35 trillion in annual global physical gold trading capital. Zoellner stated that previous measures to launch gold futures contracts in London were premature, but added that having "two or three locations with good liquidity" would benefit the global gold market. He added that any decision would ultimately rest with the exchanges, which would structure and list such products. Gold trading in London is primarily conducted through bilateral "over-the-counter" physical transactions, and currently lacks a gold futures market. The London Metal Exchange (LME) launched a gold futures contract in 2017, but closed it five years later due to low trading volumes.A 5.9 magnitude earthquake struck Costa Rica.On October 22, the Financial Times reported that the Trump administration is intensifying its attacks on US trading partners over drug pricing, preparing a new investigation that could lay the groundwork for a new round of tariffs. Three people familiar with the matter said the upcoming investigation, conducted under Section 301 of the Trade Act of 1974, would examine whether US trading partners are underpricing drugs. Trump has repeatedly complained that other countries pay less for drugs than the US and has stated he will take trade action against countries that refuse to "be equal." The new US investigation could lead to tariffs on any product or commodity the White House chooses and would reignite global trade tensions, which had subsided after Trump rescinded some tariff threats and reached agreements with some countries.Reuters poll: 60% of analysts surveyed believe the Bank of Japan will raise interest rates to 0.75% in the fourth quarter.Swedish government: Ukrainian President Zelensky and Swedish Prime Minister will make statements on arms exports.

Forecast for Gold: XAU/USD to Waver Below $1,740 Amid Steady DXY, Focus on U.S. Durable Goods Orders

Alina Haynes

Aug 23, 2022 14:51

 截屏2022-08-04 下午5.12.51_1024x576.png

 

Gold prices (XAU/USD) are exhibiting erratic behavior within a tight range of $1,733.40-1,740.00 in the early Tokyo session. After a stronger rebound from Monday's low of $1,727.85, volatility has decreased for the precious metal. Gold is stuck due to conflicting reports about how hawkish Fed chair Jerome Powell would sound at the Jackson Hole Economic Symposium.

 

After reading the Federal Reserve's minutes from last week, it's evident that Fed officials agreed on the limited data showing that inflation pressures were easing and a resolution would take some time. The Fed is also dedicated to maintaining price stability in the economy. And to serve the same, the recent trend of rate increases should continue. A rate increase of 50 basis points (bps) would be best to show deference to expert opinion.

 

However, before that can happen, all eyes will be on Wednesday's report on US Durable Goods Orders. Market analysts predict that economic growth will slow to 0.5% from the previous release of 2%. When the US economy shows no change in the US core Consumer Price Index (CPI), a drop in economic data is not good for the US dollar index (DXY).

 

Gold prices have rallied strongly after reaching the 61.8% Fibonacci retracement (placed from July 21 low at $1,680.91 to August 10 high at $1,807.93) at $1,729.44. The 20-period Exponential Moving Average (EMA) is located at $1,738.60, and it is acting as a barrier for the precious metal, preventing it from going lower.

 

The Relative Strength Index (14), which predicts future price declines, is currently fluctuating inside a negative 20.00-40.00 zone.


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