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On May 3, Ukrainian President Zelensky said that he had a meeting with former US President Trump during the funeral of Pope Francis in the Vatican last week, calling it the best conversation the two had ever had. Zelensky said that the US-Ukraine mineral agreement is beneficial to both sides and provides a guarantee for future US investment in Ukraine. He mentioned the issue of the air defense system during the talks, and Trump said he would work hard to promote it. Zelensky and Trump agreed that a 30-day ceasefire was the right first step. Zelensky also said that according to the agreement, Ukraine and the United States will each hold a 3:3 ratio of members in the Mineral Fund Council.Yemens Houthi rebels claimed responsibility for firing missiles at Israel.On May 3, EU Defense Commissioner Andrius Kubilius said Spains new goal is to spend 3% of GDP on defense. He also added that it will be the Spanish governments task to "find ways to increase defense spending in the near future." Trump has called on NATO allies to increase military spending to as high as 5%. Spanish Prime Minister Sanchez said on April 2 that Spains defense spending in 2024 will account for 1.3%, the lowest among NATO members. Spain said it will achieve NATOs goal of 2% of GDP for defense spending this year, while the previous self-set deadline was 2029.On May 3, according to data and public information from Castellum, an independent analysis agency, the number of sanctions imposed on Russia since 2014 has reached nearly 29,000, of which the United States, Canada and Switzerland have imposed the most restrictive measures. As of the end of April 2025, foreign countries have imposed about 28,937 non-trade sanctions on Russia. Among them, 92% have been imposed since the end of February 2022. The United States has imposed the most restrictive measures, accounting for 25.5% of the total number of sanctions imposed by various countries. The top three are Canada, accounting for 12.6%, and Switzerland, accounting for 11.3%.May 3rd news: Canadian Governor General Mary Simon announced on May 2nd that King Charles III of the United Kingdom and Queen Camilla will visit Canada from May 26th to 27th and attend the opening ceremony of the new Canadian Parliament in Ottawa.

Gold Price Prediction: XAU/USD will settle below $1,750 as attention switches to Jackson Hole

Alina Haynes

Aug 22, 2022 14:47

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After reaching a monthly high of $1,807.96, the gold price (XAU/USD) has dropped for five consecutive trading sessions. The price of gold fell below $1,750.00 for the first time since August. As investors drastically reduce their long positions in gold assets in anticipation of hawkish direction from the Federal Reserve, the price is expected to settle below the aforementioned crucial mark (Fed).

 

Observing contradictory comments in the Fed's minutes on policy direction weakened the gold rise earlier. James Bullard, president of the Federal Reserve Bank of St. Louis, proposed an additional 75 basis point (bps) rate hike to achieve price stability sooner. While a few Fed members have issued a statement on lowering the rate of interest rate hikes to protect the economy from future inflation threats, the majority of Fed policymakers have not.

 

As Chinese President Xi Jinping and Russian President Vladimir Putin have confirmed their attendance at the G20 summit in November, geopolitical concerns are also exerting a significant downward pressure on gold prices. This may renew Moscow's assault on humanity in Ukraine.

 

On the front of economic data, investors await the release of the US Durable Goods Orders report, which is anticipated to decrease to 0.6% from the previous release's 2%. When the US economy has previously shown a flat US core Consumer Price Index (CPI), a fall in economic data is not beneficial for the US dollar index (DXY).

 

On an hourly scale, gold prices have fallen to $1,744.70, which is close to the 50% Fibonacci retracement (set from July 21's low of $1,680.91 to August 10's high of $1,807.93). The 20-period and 50-period Exponential Moving Averages (EMAs) at $1,751.90 and $1,757.50, respectively, are falling swiftly, adding to downward filtering. In the meantime, the Relative Strength Index (RSI) (14) oscillates in a negative band of 20.00-40.00, indicating that further declines are likely.


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