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On January 9th, Barclays Julien Lafargue stated in a report that tonights revisions to the US payroll data for the first few months will also be closely watched, as they should reveal the impact of the US government shutdown. Barclays doubts whether this data will significantly alter current market expectations that the Federal Reserve will keep interest rates unchanged in the first quarter. Nevertheless, the chief market strategist pointed out that the upcoming jobs report "is just one piece of the puzzle; the other pieces include inflation and the upcoming Supreme Court ruling on reciprocal tariffs."General Motors (GM.N) shares fell 2% in pre-market trading after the company announced a $6 billion impairment charge due to a decline in its electric vehicle business.According to the New York Times, Trump stated that owning Greenland has significant psychological implications.On January 9th, Premier Li Qiang chaired an executive meeting of the State Council. The meeting pointed out that revising the regulations on nature reserves and ensuring their coordination with laws and regulations such as the National Park Law will provide strong legal guarantees for the high-quality development of nature reserves. It is essential to adhere to the principle of prioritizing ecological protection and coordinating protection and development. In accordance with the characteristics and inherent laws of natural ecosystems, nature reserves should be protected holistically, restored systematically, and managed comprehensively. While ensuring ecological protection, public service functions should be enhanced, and a mechanism led by the government, with multi-party participation and social sharing should be established to achieve a unified approach to ecological protection, green development, and improvement of peoples livelihoods.According to the New York Times, Trump said he wants the United States to own Greenland.

Gold Price Prediction: XAU/USD Holds Steady Near $1,960 Amid Weaker US Treasury Yields

Alina Haynes

Mar 28, 2023 14:55

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The XAU/USD pair rebounded after hitting a low of $1,944 on Monday, following a significant drop from $2,000 on Friday. As concerns about a banking crisis subsided on Monday, investors shifted away from safe-haven assets such as gold and into speculative assets such as equities and petroleum oil.

 

Monday's acquisition of Silicon Valley Bank (SVB) assets by a regional U.S. lender, First Citizens BancShares, led to the unwinding of Gold trades. First Citizens announced that it would expand its presence in California by assuming $110 billion in assets, $56 billion in deposits, and $72 billion in loans. The Federal Deposit Insurance Corporation (FDIC) holds approximately $90 billion in securities for sale.

 

In addition, Bloomberg reported that US regulators are contemplating expanding an emergency lending facility for banks so that First Republic Bank (FRC) has additional time to strengthen its balance sheet.

 

These banking sector developments have increased investors' risk appetite and instilled a sense of composure. Consequently, yields on U.S. Treasury bonds make sense during a relief rally. This new development encourages the Federal Reserve (Fed) to concentrate on the inflation outlook and contemplate rate increases if required.

 

Recent Fed commentary from members such as Kashkari (a voter), ultra-hawkish Bullard, and Fed Vice-Chair of Supervision Barr suggests that inflation is a higher priority than the banking crisis. Fed officials appear comparatively resilient in the face of banking stress, asserting that the US banking system's underlying fundamentals remain robust.

 

Monday's increase in U.S. Treasury bond yields can be attributed to a relief rally, but it is too soon to conclude that it represents a definitive yield shift. Any further deterioration of the banking liquidity crisis could cause yields to decline and gold to reclaim the $2,000 threshold. Personal Consumption Expenditures (PCE) data for the United States are scheduled for release later this week.

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