EUR/USD 1.18393
-0.132%
Gold 4928.91
1.044%
Oil 62.378
0.301%
USD/JPY 153.599
0.204%
GBP/USD 1.35501
-0.124%
GBP/JPY 208.133
0.088%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On February 18th, the U.S. Southern Command announced on social media on February 17th that U.S. forces attacked three alleged drug-trafficking ships in the Eastern Pacific and Caribbean on the evening of February 16th, killing 11 people on board. Since early September of last year, the U.S. military has frequently attacked alleged drug-trafficking ships in the Caribbean and Eastern Pacific. However, the U.S. government has not released any evidence to prove that its targets were involved in drug trafficking.According to data from Maoyan Professional Edition, the movie "Pegasus 3" grossed over 800 million yuan in just two days after its release.Gold prices rose on Wednesday, February 18th, according to foreign media reports, supported by bargain hunting, after falling more than 2% the previous day due to progress in negotiations between the US and Iran, while thin trading and pressure from the Lunar New Year holiday in Asia. As of this writing, the price is up nearly 1%. The US dollar is holding steady today as geopolitical risks keep markets tense, with investors awaiting the minutes of the Federal Reserves January meeting for clues about future interest rate cuts. A stronger dollar makes dollar-denominated gold more expensive for holders of other currencies. Market participants still expect an interest rate cut this year, with January jobs data showing significantly fewer new jobs added in 2025 than previously estimated. Federal funds futures traders currently expect a 60 basis point rate cut by the end of the year, pushing the benchmark rate close to 3% and maintaining that level until at least June 2027. Federal Reserve Governor Barr said on Tuesday that the US inflation outlook remains risky, and the Fed may not cut rates again for quite some time. Chicago Federal Reserve President John Goolsby said the Fed could cut interest rates "multiple times" this year if inflation returns to its 2% target.Japanese Prime Minister Sanae Takaichi: I hope to pass the budget and tax reform bill as soon as possible.Japanese Prime Minister Sanae Takaichi: Will consider revising the Japanese Constitution.

Gold Price Prediction: XAU / USD will continue to fluctuate above $1,900 despite a decline in US Inflation

Daniel Rogers

Mar 15, 2023 11:43

截屏2022-09-15 下午3.06.36.png

 

Gold price (XAU / USD) is not in danger despite U.S. inflation figures meeting expectations. Since Monday, the precious metal has been fluctuating continuously between $1,895 and $1,913. The release of the US Consumer Price Index (CPI) failed to produce a significant reaction in the Gold price; however, the upside bias appears to be solidified as wagers on lesser rate increases from the Federal Reserve (Fed) have increased.

 

The US Dollar Index (DXY) is protecting the critical support at 103.50, but it appears vulnerable to further losses as investors' risk appetite has dramatically increased. As market participants purchased S&P500 futures in response to higher odds of a smaller rate hike from Fed chair Jerome Powell, a likely recession in the US economy was postponed, signaling an uptick in optimism.

 

Contrary to the risk-on sentiment, demand for US Treasury bonds remained weak, causing 10-year US Treasury yields to rise above 3.68 percent.

 

The headline As anticipated, the US CPI increased by 0.4% on a monthly basis, and the annual figure decreased from 6.4% to 6.0%. In addition, the core CPI, which excludes crude and food prices, decreased to 5.5% from 5.6% previously. The Fed appears to be pleased with the persistence of a declining trend in US inflation.

 

In the future, investors will closely monitor the US Retail Sales (Feb) data. Monthly Retail Sales data is anticipated to decline by 0.3% compared to the previous release of a 3.0% increase. This indicates that the consumer spending rebound is over and the Fed is on course to achieve its inflation target of 2%.

Suggestion