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On February 19th, Nick Timiraos, often referred to as the "Federal Reserve mouthpiece," wrote an article on the Fed meeting minutes, stating that sometimes what the Fed doesnt mention is more interesting. In every meeting last year (up to December), staff projected that inflation would return to 2% by 2027. In December, this projection was pushed back to 2028. However, the January meeting minutes did not specify a concrete timeframe for when inflation would reach 2%. Instead, the minutes indicated that the projected figure was "slightly higher, but balanced" compared to the December projection, and that inflation was expected to return to its "previous downward trend" as the impact of tariffs was expected to end by mid-year. However, the key phrase from the December minutes ("and to reach 2% by 2028") was absent from the January minutes.February 19th - Today (February 19th) is the third day of the Lunar New Year, the fifth day of the Spring Festival holiday. The national railway system is expected to transport 13.4 million passengers today, with 747 additional passenger trains planned. Regarding ticket sales, tickets for March 5th (the seventeenth day of the first lunar month) went on sale today.The yield on Japans 20-year government bonds rose 1 basis point to 2.98%.1. All three major U.S. stock indexes closed higher. The Dow Jones Industrial Average rose 0.26% to 49,662.66 points, the S&P 500 rose 0.56% to 6,881.31 points, and the Nasdaq Composite rose 0.78% to 22,753.63 points. Goldman Sachs and Salesforce rose nearly 2%, leading the Dow Jones. The Wind U.S. Tech Big Seven Index rose 0.77%, Amazon rose nearly 2%, and Nvidia rose more than 1%. The Nasdaq China Golden Dragon Index fell 0.04%, Canadian Solar rose nearly 4%, and 21Vianet fell more than 9%. 2. All three major European stock indexes closed higher. The German DAX rose 1.12% to 25,278.21 points, the French CAC40 rose 0.81% to 8,429.03 points, and the UK FTSE 100 rose 1.23% to 10,686.18 points. 3. The WTI crude oil futures contract closed up 4.3% at $64.94 per barrel; the Brent crude oil futures contract rose 4.15% to $70.22 per barrel. 4. International precious metals futures generally closed higher, with COMEX gold futures rising 1.84% to $4996.10 per ounce and COMEX silver futures rising 4.88% to $77.13 per ounce.In January, the RMB accounted for 3.13% of global payments via SWIFT, up from 2.73% in the previous month.

The price of gold fluctuates about $1,700, and given increased hawkish Fed bets, a decline seems imminent

Alina Haynes

Jul 18, 2022 12:03

 截屏2022-07-15 下午5.36.44_1024x576.png

 

In the early Tokyo session, Gold Price (XAUUSD) tried to break above the consolidation that had been created in a constrained range between $1,703.21 and 1,705.90 on Friday. After a brief squeeze, the precious metal is now showing some symptoms of increased volatility. On Friday, the shiny metal successfully defended the psychological level of $1,700.00, which is also close to Thursday's low. The psychological support of $1,700.00 has undergone two tests, which has increased the importance of the level for market players. The precious metal is currently showing exhaustion indications at lower levels, but additional filters are needed to showcase a bullish turnaround.

 

Despite modest losses on Friday, the US dollar index (DXY) closed the week on a positive note. Weekly results showed that the asset kept winning. The DXY has been making advances for the last three weeks in a row. Despite the asset showing a stronger decline on a shorter timeline, the upside is still justified because to the DXY's overall performance. A downwards move is almost certain to occur since the asset is now auctioning in an inventory distribution phase at roughly 108.00.