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January 9th, Futures News: Economies.com analysts latest view: Brent crude oil futures prices fluctuated downwards in the recent intraday trading, attempting to retrace previous gains and escape the clearly overbought conditions indicated by the Relative Strength Index (RSI). Especially with the appearance of a negative crossover, the price broke below the major downtrend line in the short term while trading above the 50-day moving average, representing dynamic pressure and increasing the likelihood of a continuation of the upward trend in the short term.According to Business Insider, TikTok has told some of its U.S. employees that they will be working for a new global entity that is not part of the new joint venture.On January 9th, Citigroup issued a report initiating a 30-day positive catalyst watch for Lao Pu Gold (06181.HK), maintaining a "Buy" rating with a target price of HK$1,119. Based on the demand recovery and improved gross margin observed during the New Years holiday, the bank is more confident in Lao Pus outlook for this year. Citigroup expects consumers to have already digested product price increases, supported by widespread price adjustments across the industry and the rebound in gold prices since December. The report states that promotions during the long holiday also stimulated the demand recovery. The bank expects strong demand to continue into the Lunar New Year holiday. Citigroup notes that Lao Pus gross margin has recovered to over 40% since the end of November last year, and further price increases are expected after the Lunar New Year, with high profitability expected to continue this year.On January 9th, Nomura analysts stated in a research report that Asian economies are benefiting from rising demand for artificial intelligence (AI). As a global manufacturing hub, Asia is benefiting from growth in exports, investment, and consumption, while the US primarily benefits from investment. Within Asia, South Korea is the biggest beneficiary due to its leading position in the memory chip market. Chinas AI ecosystem is relatively self-contained, but rising investment in AI, the localization of server manufacturing and network equipment, and the advancement of data center construction are all supporting its economy. Southeast Asian countries such as Singapore, Malaysia, and Vietnam are also accumulating benefits from their roles in AI chip packaging and data center ecosystems.The Boeing 737 MAX 10 has entered the next phase of flight testing by the U.S. Federal Aviation Administration (FAA).

Gold Price Prediction: XAU/USD forges bullish path above $1,960, Fed and banking unrest anticipated

Daniel Rogers

Mar 21, 2023 13:57

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Following a retracement from a Year-To-Date (YTD) high, the gold price (XAU / USD) regains upward momentum amid cautious optimism in the banking sector. The market's inaction during the Japanese holiday as well as the failings of US Treasury bond yields to prolong the recent corrective bounce off a six-month low could lend support to the recovery movements.

 

Headlines indicating that U.S. policymakers are searching for ways to insure all bank deposits and that major central banks are rushing to keep markets liquid with the US Dollar flow appear to favor Gold purchasers.

 

Notably, the most recent reading of the CME's FedWatch tool indicates that the likelihood of a 0.25% Fed rate rise on Wednesday is now close to 75%, up from 65% last week. This allows US Treasury bond yields to rebound. However, Treasury bond yields remain inactive due to Japan's national holidays, which restrict bond trading in Asia. The previous day saw the 10-year and 2-year US Treasury bond yields rebound from their lowest levels since September 2022.

 

Gold traders will be keenly interested in the Fed's response to the banking crisis, as the 0.25 percentage point rate hike is a foregone conclusion. Should the dot-plot hint at a policy reversal, the US Dollar could experience further losses, which could propel the XAU/USD exchange rate.


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