EUR/USD 1.15611
-0.004%
Gold 3390.90
0.169%
Oil 72.225
3.149%
USD/JPY 144.863
0.079%
GBP/USD 1.35446
-0.244%
GBP/JPY 196.216
-0.122%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
The main fuel oil contract increased by 2.00% during the day and is now at 3,308.00 yuan/ton. The main low-sulfur fuel oil (LU) contract increased by more than 2.00% during the day and is now at 3,883.00 yuan/ton.On June 17, Baoneng Automobile issued a statement saying that recently, some media have distorted the facts and maliciously reported that the company and its affiliated companies have issued dissolution and liquidation announcements, disrupting the network order and infringing the companys legitimate reputation. Baoneng Automobile emphasized that although some companies are shown as "the company has issued a dissolution notice", "the company has issued liquidation group filing information", "the company is in the process of revoking the business license" on the national credit information disclosure platform, the companys operations are normal and new cars are about to be launched.The main crude oil futures contracts saw their gains expand, with SC crude oil rising by more than 3%, liquefied petroleum gas (LPG) rising by more than 2%, fuel oil and low-sulfur fuel oil rising by nearly 2%, and asphalt rising by nearly 1%.Israeli Army: Ended its attacks on western Iran “not long ago”.The Nasdaq Composite Index opened on June 17 (Tuesday) down 66.84 points, or 0.34%, to 19,634.38 points; the S&P 500 opened on June 17 (Tuesday) down 21.27 points, or 0.35%, to 6,011.84 points; the Dow Jones Industrial Average opened on June 17 (Tuesday) down 138.29 points, or 0.33%, to 42,376.8 points.

Gold Price Prediction: XAU/USD nears $1,980 as USD Index extends losses in response to the Fed's dovish guidance

Daniel Rogers

Mar 23, 2023 14:48

269.png

 

In the Asian session, the gold price (XAU / USD) is gaining strength to surpass the immediate resistance of $1,980.00. As the US Dollar Index (DXY) resumed its decline and fears of a US banking crisis revived, demand for the precious metal increased.

 

As the Federal Reserve (Fed) has come extremely close to the terminal rate, which would be restrictive enough to bring down U.S. inflation to 2%, the USD Index is seeking to retest its six-month low below 102.000. Fed Chair Jerome Powell stated in his commentary that "additional policy tightening may be necessary."

 

Investors should be aware of the fact that the US banking crisis has bolstered the status of gold as a safe-haven asset. However, US Treasury Secretary Janet Yellen's reassurance of the safety of all bank deposits quelled concerns of a banking crisis.

 

As of Wednesday, when US Yellen stated that the government "is not considering insuring all uninsured bank deposits," the situation appears to have changed. This has also increased demand for United States government bonds. Yields on 10-year U.S. Treasuries have decreased to near 3.45%.

 

In the meantime, S&P500 futures have rebounded strongly after a steep decline on Wednesday, indicating an improvement in risk appetite. Nonetheless, caution still prevails as US banks' strict credit conditions will have a long-term impact. According to the Fed's commentary, the US banking system is solid and resilient, but US banks will be more cautious in their lending to households and businesses.


Suggestion