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February 25th - On the evening of the 24th local time, Iranian Foreign Minister Araqchi stated that, based on the consensus reached in the previous round of negotiations, Iran will resume talks with the United States in Geneva, determined to reach a fair and reasonable agreement as soon as possible. Irans basic position and beliefs are very clear: it will not seek to develop nuclear weapons under any circumstances, and the Iranian people will never relinquish their right to the peaceful use of nuclear technology. He pointed out that there is now a historic opportunity to reach an unprecedented agreement that addresses common concerns and safeguards common interests. An agreement is imminent, but the prerequisite is that diplomatic means must be prioritized. Iran has proven that it will spare no effort to defend its sovereignty. Iran will return to the negotiating table with the same courage, striving to peacefully resolve all differences.Market news: A massive explosion occurred in Kyiv, the capital of Ukraine.February 25th - As of 2:30 PM closing, the Shanghai Gold futures contract fell 0.30%, the Shanghai Silver futures contract rose 0.71%, and the SC crude oil futures contract fell 0.90%.February 25th - As of 2:30 PM closing, the Shanghai Gold futures contract closed down 0.30% at 1148 yuan/gram, the Shanghai Silver futures contract closed up 0.71% at 22179 yuan/kilogram, and the SC crude oil futures contract closed down 0.90% at 486 yuan/barrel.Swiss National Bank President: The Swiss National Bank is prepared to intervene in the foreign exchange market if necessary.

Gold Price Prediction: XAU/USD declines near $1,750 as risk aversion anticipates NFP data release

Alina Haynes

Aug 02, 2022 15:03

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During Tuesday's opening European session, the gold price (XAU/USD) deepens its retreat from a nearly three-month-old resistance line, falling below $1,773. In spite of this, the precious metal exhibits a five-day rise around the greatest levels since July 5.

 

The metal's early-day rally may have been influenced by a broad dollar decline and Treasury rates. The XAU/USD exchange rate afterwards looked to have been influenced by China-related news and rising worries of an economic downturn.

 

Nonetheless, the visit of US House Secretary Nancy Pelosi to Taiwan and the probable difficulties for Chinese chipmakers as a result of the U.S. consideration of banning supplies of American chipmaking equipment further weigh on market mood. Similarly, a Chinese media story may indicate that the dragon country is prepared for a military exercise in Bohai, South China Sea.

 

In addition, Bloomberg's report that Beijing's Gross Domestic Product (GDP) has no fixed limits tends to dampen the market's risk appetite. People acquainted with the situation were quoted in the press as saying, "China's top leaders instructed government officials last week that this year's economic growth objective of "about 5.5 percent" should serve as guideline rather than a mandatory aim."

 

It should be emphasized that China is one of the world's largest users of gold, and that bad news stories about the country might impact on gold prices.

 

Elsewhere, the recently poor US PMIs mirrored last week's US Gross Domestic Product (GDP) for the second quarter to illustrate economic anxiety. Fed Chair Jerome Powell's veiled warnings that the hawks are losing steam might also dampen sentiment.

 

As a reflection of market mood, equities in the Asia-Pacific region and US stock futures see modest losses. However, the US 10-year bond yield decreases 5.5 basis points (bps) to 2.55 percent at the latest, threatening the gold bears via the weakening US dollar. In spite of this, the US Dollar Index (DXY) reestablished the monthly minimum before rebounding from 105.00.

 

The news concerning China and the recession, as well as the remarks of Chicago Fed President Charles L. Evans and Federal Reserve Bank of St. Louis President James Bullard, will be crucial for intraday gold dealers in the future.


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