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According to Futures News on July 24, as of 15:00 Beijing time, spot platinum fell 0.62% and spot palladium fell 1.52%.July 24th - Ko Nakayama, an economist at Okazo Securities, stated that the upside risks to Japans inflation outlook remain high, given the recent depreciation of the yen and the increased cost pressures from rising oil prices. He added that current price increases stem from multiple factors – not only rising oil and naphtha prices, but also wage increases, a weaker yen, and increased raw material and logistics costs. Government data released earlier on Friday showed a modest rebound in consumer inflation in June. Bank of Japan policymakers previously stated that they expect the impact of soaring oil prices to begin to be reflected in consumer prices around the summer.July 24th - The yield on Japans 40-year government bonds rose 10 basis points to 4.010% intraday, while the yield on 5-year bonds also reached its highest level since 2000, as investors remained unconvinced that the Bank of Japan would quickly tighten monetary policy to curb inflation. These gains mirrored the performance of US Treasuries, as rising oil prices boosted market expectations of a Federal Reserve rate hike. Ataru Okumura, chief interest rate strategist at SMBC Nikko Securities, stated, "The markets focus is on the Bank of Japans slow response to rising oil prices, which has prompted investors to demand higher premiums to hold long-term bonds due to concerns about relatively high inflation risks in Japan. Yields are likely to continue rising as concerns about fiscal expansion intensify ahead of the governments finalization of the consumption tax cut plan in early August."The British government stated regarding the latest US tariffs that the US has recognized the measures taken by the UK on the issue of forced labor.The UK government stated that the latest US tariffs have not negatively impacted the tariff rates faced by UK businesses.

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

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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%.

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