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On September 1st, Royal Canadian Securities analyst Abbas Keshwani commented that given the yens weakness, the Bank of Japan (BOJ) may raise interest rates or intervene in the foreign exchange market in the coming weeks. The yen has weakened over the past month, and recent depreciation has already offset much of the BOJs intervention efforts over the past few months. Keshwani stated that for the yen to appreciate significantly, the BOJ would need to adopt an aggressive rate hike cycle, but it is unlikely to do so at the expense of economic growth. He added, "The BOJ may raise interest rates to a level sufficient to prevent the yen from weakening excessively until the Japanese government bond market stabilizes next year, thus creating conditions for a yen recovery."On September 1st, BCA Research analyst Felix Wezina-Poirier stated in a report that volatility in government bond yields is expected to be a significant factor influencing risk asset prices. Sovereign bond yields have risen to multi-year highs due to inflation concerns triggered by high oil prices. Wezina-Poirier stated, "For equities, the absolute level of yields is less important than the speed of change; therefore, implied interest rate volatility is a more useful indicator for measuring equity market risk." However, Federal Reserve Chairman Warshs remarks last week signaled a readiness to take action to curb inflation, which should help keep yield volatility at a relatively controlled level.September 1st news: Voyah Automobile delivered 13,003 vehicles in August 2026, and a total of 102,456 vehicles from January to August 2026, representing a year-on-year increase of 25%.Micron Technology (MU.O) shares fell 1.5% in pre-market trading.Both WTI and Brent crude oil rose by $0.60 in the short term, currently trading at $86.28 per barrel and $91.44 per barrel respectively.

Gold price prediction: XAU/USD slips to $1,690 on Fed forecasts; US retail sales expected

Daniel Rogers

Sep 15, 2022 11:37

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Gold price (XAU/USD) has adopted a downward trend after falling below Wednesday's minimum of $1,693.67. The precious metal is falling nearing $1,690.00 as bears take control of rising probabilities for a massive Federal Reserve (Fed) rate hike in the near future.

 

Earlier symptoms of weariness have dissipated as a result of Tuesday's higher-than-anticipated US Consumer Price Index (CPI) report. Despite declining gasoline costs, the headline US CPI was announced at 8.3%, which was higher than the 8.2% prediction. The investment community believed that inflation had begun to respond to the Federal Reserve's (Fed) raising interest rates and that a succession of declining price pressures would soon enable the Fed to adopt a 'neutral' stance.

 

However, a US inflation report that exceeded forecasts demonstrates that the road to a neutral monetary policy is far from complete. Moreover, predictions of a one percent rate increase are currently ascendant.

 

In today's session, the US Retail Sales report will be of paramount importance. The economic data estimates do not indicate any improvement in retail demand. This could be the outcome of a fall in consumer confidence in the economy.

 

The gold price has experienced a precipitous decline after demonstrating a textbook-style test and the collapse of a consolidation pattern. On an hourly scale, the consolidation formed within the region of $1,697.12-1,709.62. At $1,698.70, the yellow metal is trading below the 20-period Exponential Moving Average (EMA), which increases the downside filters.

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