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Polish central bank board member Duda: The basic scenario for monetary policy is to keep interest rates stable in the coming months.NATO Secretary General Rutte: If war breaks out, all allies, including the United States, will do everything in their power and to the best of their ability.Azerbaijans Ministry of Emergency Situations: A fire broke out at an oil refinery in Baku.Futures Commentary by Everbright Futures: 1. With the Feds decision now finalized, overnight London spot precious metals surged before quickly retreating, with intraday losses exceeding 2%. Warshs debut was more hawkish than expected, which is bearish for gold in terms of outcome. However, given that this was already priced in, the short-term bearish impact may not be sustained. But from the perspective of interest rate hike expectations, the bearish effect may be more medium-term. Furthermore, with the signing of the US-Iran memorandum of understanding, market attention may shift to the Strait of Hormuz navigation issue and oil prices, subsequently predicting interest rate trends. Overall, gold may continue to fluctuate at low levels. 2. Overnight, the market focused on the Federal Reserves interest rate meeting. The results showed that the Fed, in line with market expectations, kept interest rates unchanged for the fourth consecutive meeting. The decision received unanimous support from FOMC voting members for the first time in nine months. However, Warshs debut as FOMC chair indicated that the Fed maintained its hawkish stance. The dot plot showed that half of the voting members believed there should be one rate hike this year. Additionally, the statement removed interest rate guidance, stated its commitment to price stability, lowered its GDP growth and unemployment rate forecasts for this year, and raised its PCE and core PCE inflation forecasts to 3.6% and 3.3%, respectively. 3. On the geopolitical front, US officials stated that the US and Iran have remotely signed a memorandum of understanding aimed at ending the war and opening the Strait of Hormuz, and the agreement is now in effect. An Iranian Foreign Ministry spokesperson stated that the text of the memorandum of understanding between Iran and the United States has been finalized and formally signed by both sides.According to RIA Novosti: Traffic was disrupted on a section of the Moscow ring road near an oil refinery following a Ukrainian drone attack.

Gold Price Prediction: XAU/USD oscillates about $1,650 as DXY recovers recent losses

Alina Haynes

Oct 25, 2022 15:24

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Gold price (XAU/USD) is indecisive while rebounding from intraday lows to $1,650 ahead of Tuesday's European session.

 

Nevertheless, the yellow metal attracted purchasers earlier in the day due to a weaker U.S. dollar, but the currency's recent resurgence looks to have weighed on the price recently. It should be mentioned that unfavorable concerns regarding China, one of the world's largest gold consumers, have recently posed a threat to the pricing of precious metals.

 

In the absence of Fed-speak, the US Dollar Index (DXY) gains bids to reclaim the 112.00 mark while trimming its first weekly loss in three weeks. It should be emphasized that the Fed's aggressive rhetoric and weak US PMIs also support the DXY's safe-haven appeal.

 

China's efforts to protect its struggling economy and worldwide pessimism regarding Xi Jinping's third term, not to mention Hang Seng's decline to a 13-year low, impose downward pressure on market mood and the XAU/USD exchange rate.

 

US 10-year Treasury rates continue under pressure around 4.21 percent, down two basis points (bps), while US stock futures and Asia-Pacific markets are moderately bid.

 

Moving forward, second-tier US Housing data and Consumer Confidence indicators may delight gold speculators before Thursday's third-quarter US Gross Domestic Product report (Q3).