A Delicate Balance or A Golden Opportunity

A Delicate Balance or A Golden Opportunity, Gold prices traded in a narrow range on Tuesday as investors held back from making large bets ahead of U.S. inflation data and the Federal Reserve’s rate-hike decision.

 

Topic
Navigating the Uncharted Waters of Gold Invest
Gold Shining Brighter
Gold & Silver in the Face of Unclarity
Reaping the Rewards of Rate Hikes

 

 

 

 

 

 

 

With uncertainty surrounding both events, it is no surprise that gold traders are
taking a wait-and-see approach to their investments currently.
The upcoming release of U.S. inflation data could have an impact on the Fed’s decisions regarding future interest rates,
which in turn could affect gold prices significantly depending on
how they decide to proceed with policy changes or not make any at all! Additionally,
if there is evidence that consumer spending has increased
due to higher wages then this would likely result in further monetary tightening by the central bank
something investors should be aware of when considering whether now is an opportune moment for investing in Gold or not.

 

In light of these factors, it may be prudent for investors who are looking into buying Gold right now

to take cautionary steps such as diversifying their portfolio across different asset classes
and monitoring market developments closely over the next few days
before making any major moves with regard to investing money into precious metals like Gold!
By doing so they can ensure that whatever direction markets move towards
after US Inflation Data & The Feds Rate Hike Decision come out
they will still have some protection against potential losses incurred
due to volatile price swings within this sector specifically during times when uncertainty reigns supreme!

 

 

Gold Shining Brighter

 

Investors, it’s time to take notice of the gold market. Spot gold was up 0.1% at $1,783.16 per ounce
by 1011 GMT and U.S. gold futures edged 0.1% higher to $1793-90
a sign that investors are looking for safe havens in times of economic uncertainty
and volatility in other markets such as stocks or cryptocurrencies like Bitcoin.

 

The dollar index was down 0/1%, making greenback-priced bullion more appealing to buyers holding other currencies
further evidence that investors recognize the value of investing in precious metals
when there is uncertainty around traditional investments.

Gold has long been seen as an important part of any diversified
portfolio because it can act as a hedge against inflation,
currency devaluation and global political instability
all factors which could affect your returns from traditional investments such as stocks or bonds,
Investing in physical assets like gold can also provide you with greater control
over your investment decisions compared with trading on exchanges
where prices may be influenced by external events outside your control.

 

So, if you’re looking for ways to protect your wealth during this period of volatility
then now could be an ideal time for adding some physical Gold to your portfolio!

The recent announcement of a 50-basis point rate increase by major central banks has been priced in, leaving investors wondering what the next directional movement for gold and silver will be. With so much uncertainty swirling around global markets, it’s no wonder that many investors are looking to precious metals as a safe haven asset.
However, before we can see any new directional movement for gold and silver prices, more clarity is needed from central banks on their monetary policy decisions going forward.

 

 

 

 

Gold & Silver in the Face of Unclarity

 

As the effects of this latest rate hike work their way through financial markets over time—including potential impacts on currency values—the true direction of these commodities may become clearer in due course.

 

In the meantime, there are other factors that could help drive up demand for both gold and silver even without further action from central banks: geopolitical tensions remain high across several regions; inflationary pressures continue to build worldwide, and economic growth remains sluggish in some countries despite recent stimulus measures taken by governments or international institutions like the IMF or World Bank.

 

All these elements have contributed to an environment where precious metal investments might make sense right now as part of a diversified portfolio strategy – though always with caution when investing!

Ultimately then while we wait patiently (or impatiently!) for more guidance from our respective banking systems regarding interest rates etc., it’s essential not to forget all those other external influences which could still affect movements within commodity markets such as Gold & Silver too – they should never be overlooked!

 

“Before we can see any new directional movement for gold and silver, we need some more clarity from central banks. For the time being, the aspect of 50 basis point rate increase from all the major banks are already been priced in,” Carlo Alberto De Casa, an external analyst at Kinesis Money, said.
“I see good chances of a consolidation phase. I don’t expect massive movements in the final part of the year,” he added.

 

Investors, the time is now! The U.S. central bank is set to issue its policy statement at 2 p.m. EST (1900 GMT) on Wednesday, followed by a press conference from Fed Chair Jerome Powell at 1930 GMT – and traders see an 89% chance of a 50-basis-point rate hike!

 

 

Reaping the Rewards of Rate Hikes

 

This news comes alongside similar expected action from both the Bank of England and European Central Bank this week as each is also predicted to deliver a 50-bps rate hike. This means that investors have plenty of opportunity for growth in their portfolios over the coming weeks should they choose to capitalize on these changes in monetary policy across all three major economies.

 

It’s important for investors to keep a close watch over inflationary data though as any weak print could mean that rates will remain restrictive for shorter than initially anticipated periods

 

so it pays off big time if you’re paying attention here too! ANZ has already noted this in their latest report, making it even more crucial that you stay up to date with what’s happening around you when considering your next investment move or strategy shift accordingly.
In conclusion, make sure not to miss out on these huge opportunities presented by upcoming changes in central bank policies – act fast before someone else does first!

 

 

 

Gold Price Forecast

Gold Price Forecast, Gold prices remained positive traction on Tuesday and reversed a part of the previous day’s retracement slide from a five-month peak.

 

 

Topics
Gold prices rebound on Tuesday
What’s Next for the Markets
Gold Soar as Fears strikes the world

 

 

 

 

 

 

Gold prices rebound on Tuesday

 

The steady intraday ascent extended through the early North American session
and lifted the XAU/USD to a fresh daily high, around the $1,780-$1,781 region in the last hour.
The renewed buying interest coincided with some weakness in the US Dollar Index ahead of today’s FOMC meeting minutes release.
This, along with an uptick in global risk sentiment helped offset concerns
over surging coronavirus cases across Europe and the lack of progress on additional US stimulus measures.

With no major market-moving economic releases scheduled for Tuesday afternoon from either side of the Atlantic Ocean,
Gold prices are likely to remain influenced by developments surrounding
the COVID-19 pandemic as well as broader market risk sentiment trends
before traders start positioning for this week’s key events
especially Friday’s monthly jobs report from the US economy.

 

Gold prices are on the rise as the US Dollar continues to weaken.
This is good news for investors who have been watching the Gold market closely.
The weaker US Dollar lends support to Gold price, making it a more attractive investment.
With interest rates expected to remain low, Gold is likely to continue its upward trend.
So if you’re looking for a safe haven for your investment portfolio, consider adding some Gold to your holdings.

 

The US economy continues to defy expectations with strong job growth
and resilient economic activity. The latest ISM Services PMI came in better than expected,
pointing to a healthy economy. This raises fears that the Federal Reserve might lift rates more than projected.
However, investors seem convinced that the Fed will slow the pace of its policy tightening cycle
and only anticipate a 50 bps rate hike in December.
This positive outlook is good news for investors looking to put their money into US assets.

 

 

What’s Next for the Markets

 

While the FOMC meeting is the key event next week, there are other data releases
and events that could also move markets.

Here’s a look at some of the key risks:

US consumer inflation figures for November:
These numbers could influence the Fed’s policy outlook and, in turn, gold prices.
The latest US retail sales figures:
These numbers will be closely watched to see how consumers are spending heading into the holiday season.
Any weakness could spook investors.
Earnings reports from major retailers:
Retailers’ earnings reports will give insight into how they’re faring this holiday season.

 

Strong results could boost confidence in the sector, while weak results could weigh on stocks.

The economic data from China over the past few weeks have been encouraging,
with manufacturing activity and retail sales both picking up.

However, global equity markets have failed to sustain the initial optimism led by these data releases,
as concerns about a deeper economic downturn continue to weigh on investor sentiment.

 

 

Gold Soar as Fears strikes the world

 

One of the key drivers of this pessimism is the increasing likelihood of a recession in the United States.
The latest data from jobless claims and consumer confidence surveys point to an economy
that is struggling to cope with the impact of COVID-19.
With businesses across sectors cutting jobs and consumers tightening their spending,
it seems only a matter of time before we see a full-blown recession in America.

 

This growing fear of an American recession is one of the main reasons why Gold prices have remained elevated in recent weeks.
As a safe haven asset, Gold benefits from increased demand when investors are seeking refuge from market volatility
and economic uncertainty.
We expect this trend to continue in the near term as fears about a deepening global downturn continue to underpin demand for Gold.

The bullish bias prompt some technical selling.
This, in turn, could drag the commodity back towards the key $1,750 – $1,747
horizontal-line-support-turned-resistance zone.
Some follow-through weakness below might even take it towards an important Fibonacci retracement level
of $1,737 before the Gold price eventually stabilizes around the mid-$1700s.

 

 

Gold: The Road to Recovery

Gold: The Road to Recovery, Gold prices have staged a modest recovery in recent trade,
retaking the $1750 per ounce level amid broad-based selling pressure in the US Dollar.

 

Topics
The Gold Rush
Rising US Treasury Bond Effect
Gold price technical outlook

 

 

 

 

 

 

The Gold Rush

 

The move comes as market participants brace for what is shaping up to be a critical day of trading
on Tuesday, with renewed optimism from China helping to support risk flows.
With safe-haven demand easing and the USD under pressure,
gold prices appear poised to continue their upward march in the near term.
However, any further gains may be limited by resistance around the $1760 level.
|For now, all eyes remain on developments in China and how they will impact global markets tomorrow.
The US Dollar has come under pressure as optimism grows in China that the country will soon be able to relax its zero-Covid policy.

After three days of lockdown-induced protests, Chinese equity markets have rebounded strongly on the expectation that the government will soon ease its restrictions. Global Times tweets have suggested that the government could do away with its stringent zero-Covid policy sooner than later, lifting risk sentiment and putting pressure on the US Dollar.
The S&P500 futures are up 0.36% so far today, reflecting the positive shift in market sentiment. With China moving closer to reopening its economy, investors are becoming increasingly optimistic about global growth prospects, and this is weighing on the safe haven US Dollar.

It’s worth noting that China on Tuesday reported a decline in new COVID-19 infections for Nov. 28, posting 38,645 cases, after a record daily high of 40,347 cases on the previous day. Reduced safe-haven demand for the US Dollar bodes well for the USD-sensitive gold price.\

 

 

 

 

Rising US Treasury Bond Effect

 

The US Treasury bond yields recovered sharply on Monday after the hawkish commentary from the United States Federal Reserve officials. The further recovery in Gold price could be capped by the buoyant tone seen around the US Treasury bond yields.
James Bullard, President of the Federal Reserve Bank of St. Louis, said that rates need to go higher to bring inflation down. New York Fed Bank President John Williams said that “I do think we’re going to need to keep the restrictive policy in place for some time; I would expect that to continue through at least next year.” Meanwhile, Richmond Fed President Thomas Barkin noted that “I’m very supportive of the path that is slower, probably longer and potentially higher.”

The Bullish remarks from the US Treasury officials lifted the bond yields and fuelled a solid comeback in the US Dollar. Gold price, therefore, closed Monday deep in the red near the $1,740 demand area. The move was in line with our previous forecast and now we expect further downside pressure on gold prices in the short term.

 

 

Gold price technical outlook

 

Gold prices failed to resist above $1,747 on Monday, which is the 23.6% Fibonacci Retracement (Fibo) level of the latest rally from the November 3 bottom at $1,617. The move lower also prompted gold price to settle the day below the rising (dashed) trendline support, then at $1,744.

Buyers found support once again near the $1,740 region though, triggering a recovery rally above the $1,750 level this Tuesday morning. In doing so gold price has recaptured both the 23.6% Fibo level and the rising trendline support-turned-resistance now at $1747 and$1749 respectively the next upside barrier is seen around the key figure mark at $1,760 Acceptance above the latter will be critically unleashing any additional upside toward $1,770

The 14-day Relative Strength Index (RSI) looks poised for further gains after already inching higher from just above the midline This combined with today’s early morning breakout above short-term resistance suggests we could see some more upside in gold prices over coming sessions However any retreat below minor support around $1,740 would negate the immediate bullish outlook.

 

 

 

Gold Rises as Dollar Falls

Gold Rises as Dollar Falls, Gold prices rose on Tuesday, snapping a four-session slump, as the dollar retreated and investors awaited cues on the U.S.

 

Topic
Federal Reserve’s monetary policy path
The Fed’s Last-Minute Rate Hike
The U.S. nonfarm effect

 

 

 

 

 

 

Federal Reserve’s monetary policy path

 

The Fed is widely expected to leave interest rates unchanged at its two-day meeting that ends on Wednesday,
but traders will be looking for clues on the central bank’s plans for future rate hikes.
A weaker dollar makes gold cheaper for holders of other currencies,
while higher rates could dent demand for non-yielding bullion.
Spot gold was up 0.3% at $1,281 an ounce by 1007 GMT after falling
to a more than one-week low of $1,274 in the previous session when it dropped
below key technical support around its 200-day moving average.
Gold fell nearly 2% last week in its biggest weekly percentage drop since early July 2016

Spot gold was up 0.6% at $1,747.82 per ounce on Thursday morning as the US dollar stalled its rebound,
offering the precious metal a chance to find firmer footing around the mid-$1700 region.
US gold futures rose 0.5% to $1,748.90 as traders await further direction
from key technical levels and fresh fundamental catalysts.
“The US dollar’s stalling rebound is offering spot gold the chance to find a firmer footing
around the mid-$1700 region for the time being,”
said Han Tan, chief market analyst at Exinity, from a technical perspective.
However, bulls need to overcome resistance at $1750 in order for prices
to target a move back towards last week’s highs of $1775.

 

 

The Fed’s Last-Minute Rate Hike

 

The government made a wise decision by making gold less expensive for foreign buyers.
The dollar has recently risen in value versus all major currencies.
This has increased the cost of gold for international buyers, perhaps leading to reduced demand and prices.
The government hopes to boost demand and keep prices constant by making gold more affordable to foreign purchasers.

The minutes from the last Federal Reserve meeting are due out tomorrow,
and traders and investors are eagerly awaiting them.
There is wide expectation that the Fed will announce a 50-basis point rate hike in December,
with rates peaking in June. This would be a major shift from the recent narrative of a “pivot” by the Fed,
which has been seen as bullish for gold prices.
If the Fed does indeed hawks swoop back in and disrupt this narrative once more,
it could see gold prices unwinding some of their recent gains and testing support around $1700 an ounce.

The U.S. nonfarm payrolls and inflation prints due before the December Fed meeting are likelier catalysts for bullion’s next big moves. Gold prices have been on a tear lately, hitting new all-time highs in multiple currencies. The precious metal is up more than 25% this year as investors seek safe havens amid the Covid-19 pandemic and economic uncertainty.

While gold could continue to rise in the near term, some analysts believe it could be ripe for a pullback after such a strong run-up. That said, key data releases from the U.S., including nonfarm payrolls and inflation numbers, could provide direction for gold prices in the lead-up to the Federal Reserve’s December meeting.

 

 

 

 

 

The U.S. nonfarm effect

 

A better-than-expected jobs report could ease concerns about an economic slowdown and put pressure on gold prices as risk appetite improves. On the other hand, if inflation comes in higher than expected, it could add fuel to fears of stagflation and send gold prices even higher

“The U.S. nonfarm payrolls and inflation prints due before the December Fed meeting are likelier catalysts for bullion’s next big moves.” Said Tan

With interest rates on the rise, many traders and investors are wondering what this means for gold. While higher interest rates tend to be negative for gold prices, there are a few things to keep in mind. First, the Fed has said that they will be gradual in their rate hikes. Second, inflation is still relatively low. And finally, while gold doesn’t offer any yield itself, it can still act as a hedge against inflationary pressures. So while higher interest rates may not be great news for gold prices in the short-term, longer-term prospects remain positive.

Spot silver climbed 2.1% to $21.28 per ounce on Wednesday, extending its gains for the third straight session. The white metal was boosted by safe-haven demand as investors sought refuge from volatile equity markets. Platinum added 1.1% to $993.29, and palladium gained 0.6% to $1,876.

 

 

 

Gold prices take a tumble

Gold prices take a tumble, and gold prices have been volatile lately, falling on Thursday after better-than-expected
U.S. retail sales data increased the likelihood of a rate hike by the Federal Reserve.

 

Topics
Gold’s Run Finally Comes to an End
Rising Interest Rates on Gold
The Impact of the Ukraine Crisis on Gold

 

 

 

 

 

 

 

Gold’s Run Finally Comes to an End

 

The strong dollar weighed down gold prices,
while safe-haven demand from geopolitical concerns also faded.
Despite the recent decline, gold prices are still up significantly from where they were a year ago.
This is due to a variety of factors including central bank buying, global economic uncertainty,
and safe-haven demand. Gold is often seen as a hedge against inflation and currency debasement,
making it an attractive investment during times of uncertainty.

Looking ahead, it remains to be seen how long gold’s rally will last.
If the Fed raises rates more aggressively than expected or if geopolitical tensions ease, gold prices could come under pressure once again.
However, given the current environment of low-interest rates and high economic uncertainty around the world,
gold could continue to shine in the months and years ahead.

Gold has had an excellent run over the past few months, but it has finally succumbed to the strength of the dollar.
The dollar has been on a tear lately, rising against all of its major rivals.
This makes gold more expensive for other currency holders and is likely to lead to some profit-taking by investors.
However, given the magnitude of gold’s prior rally, it could still pull back further before finding support.

 

 

 

 

 

Rising Interest Rates on Gold

 

“Gold has had an excellent run, but having struggled to push above $1,790 it has succumbed to the strength of an oversold U.S. dollar and seemingly entered a retracement”,
“Gold can pull back further given the magnitude of its prior rally,
which is likely to tempt profit-taking and entice a few countertrend bears around these highs,” said City Index analyst Matt Simpson.

U.S. retail sales increased more than expected in October, suggesting that consumer spending could help to underpin the economy in the fourth quarter
and renewed expectations that the Federal Reserve will keep hiking rates.

San Francisco Fed President Mary Daly told CNBC it’s reasonable for the Fed to raise its policy rate to a 4.75%-5.25% range by early next year,
and that pausing rate hike is not part of the discussion.

 

 

 

 

When it comes to investing in precious metals like gold and silver, many people are concerned about rising interest rates.
After all, if rates go up, that means there are more attractive investment options available that offer a higher return.
So why would anyone still want to invest in gold?

The answer lies in the fact that gold is a hedge against inflation. When prices start to rise rapidly, the value of gold goes up as well.
This makes it an ideal investment for those who are worried about inflation eating away at their savings.
Additionally, while bullion may not pay any interest itself, it can be used as collateral for loans that do offer a return on investment.

So don’t let rising interest rates deter you from investing in precious metals! Gold and silver can still be great additions to your portfolio.

 

 

The Impact of the Ukraine Crisis on Gold

 

Gold prices have surged to a three-month high as fears of an escalation in the Ukraine crisis grow.
Media reports of a Russian missile strike that killed two people in Poland near the Ukraine border have sparked concerns that the conflict could escalate further.
Poland’s president said on Wednesday a missile that hit his country was probably a stray Ukrainian defense projectile, dispelling fears that it came from Russia

With tensions running high between Russia and the West, it’s no wonder that people are on edge about the possibility of a stray missile hitting Poland.
Thankfully, it seems that this was not the case and we can all breathe a little easier.

Precious metals were mostly lower today as investors took some profits off the table after recent gains.
Silver was hit particularly hard, falling more than 1%. Platinum and palladium also fell modestly while gold held steady.

Overall, it was a relatively calm day in markets despite the potential for drama.
We’ll be keeping an eye on developments in Eastern Europe closely to see if anything else pops up.

 

 

 

 

Gold prices: A roller coaster ride

 

Gold prices have been on a roller coaster ride in recent weeks, as investors try to decipher the Fed’s next move on interest rates.

 

Topics
Gold and Dollar Correlation
Gold and Unemployment Correlation
Volatile Week for Precious Metals

 

 

 

 

 

Gold and Dollar Correlation

 

Prices slipped on Tuesday as the dollar regained some ground,
while investors braced for inflation data later this week that could provide more clues on the Fed’s policy path.

Spot gold was down 0.4% to $1,668.50 per ounce by 0844 GMT,
after hitting a three-week peak in the previous session when a weaker dollar boosted prices.
U.S gold futures shed 0.5% to $1,671.

The U.S. dollar has been on a quest to retain lost ground,
prompting a pause in gold’s surge post-jobs data.
The dollar index rose 0.3% higher after hitting a more-than-one-week low on Monday,
making bullion more expensive for overseas buyers.
However, the greenback’s rally may be short-lived as the underlying fundamentals remain weak.

 

 

 

 

 

Gold and Unemployment Correlation

 

The U.S. unemployment rate rose to 3.7% in October, according to data released on Friday,
which has induced optimism that the Fed will shift to less aggressive interest rate hikes.
This news helped gold record its best day since March 2020 as traders and investors alike see this as a good opportunity to invest in the precious metal.

This week, traders and investors will be focused on two key events:
the release of inflation data on Thursday and the U.S. midterm elections on Tuesday.

The inflation data is expected to be a key factor in the next Fed rate decision,
so markets will be closely watching for any clues about future policy direction.
Meanwhile, the midterm elections will determine control of Congress and could have a major impact on market sentiment.

Rising interest rates are often seen as a sign of impending inflation,
which generally leads to an increase in the price of gold.
This is because investors tend to flock to the precious metal as a safe haven asset when they believe that the value of other assets will decrease.
However, rising interest rates also have another effect on gold prices
they increase the opportunity cost of holding the asset.

This is because when interest rates rise, so do returns on other investments such as bonds and cash equivalents.
This makes these assets more attractive to investors,
who may then sell their gold holdings in favour of these alternatives.
As a result, we could see some selling pressure on gold prices if interest rates continue to rise in the coming months.

 

 

Volatile Week for Precious Metals

 

It’s been a volatile week for precious metals as investors keep a close eye on developments surrounding the COVID-19 pandemic.
After hitting fresh highs earlier in the week, silver prices have pulled back somewhat as traders weigh the prospects of further lockdown measures in top consumer China against vaccine progress and stimulus hopes.
Platinum and palladium prices have also come under pressure,
although both metals are still holding onto gains made earlier this month.

With infection rates rising in many parts of the world and concerns about new variants of COVID-19,
there is a growing risk that additional restrictions will be imposed to try to contain the spread of the virus.
This could weigh on demand for precious metals,
which are often used as safe haven assets during times of economic uncertainty.

 

 

 

Gold Diving for Almost 9 Months

Gold Diving for Almost 9 Months, Gold Futures contracts closed down Monday, marking the eighth consecutive monthly loss,
the longest such sequence since 1982 based on the most regularly traded contracts, according to the Market Data.

 

Topics
The Pressure
The Rebound Attracting Buyers
Stages of Risks
Rising Interest Rates

 

 

 

 

The Pressure

 

Gold prices fell after US equities rose and Treasury rates fell from recent highs, dampening demand for safe-haven assets.
Some analysts predict that gold prices will stay under pressure in the coming months as predictions for increased interest rates continue to impact on haven demand.
The precious metal had come under pressure in recent days as risk appetite improved and investors sold off safe-haven assets.
However, it found support near the key $1,600 level and has now recovered most of its losses.
Inflation data released on Friday showed that consumer prices rose just 0.2% in April, missing expectations for a 0
This has helped to drive demand for gold, which is seen as a safe haven asset in times of market turmoil.

 

The Rebound Attracting Buyers

 

Gold prices staged a good recovery on Tuesday,
attracting some buyers near the $1,630 area and climbing to a fresh daily high.

The upward momentum continued into the European session,
with the XAU/USD pair rising to around $1,650.
The main driver for gold prices remains investor sentiment.

If risk aversion increases or there is another wave of selling in global markets
then we could see gold prices resume their downward trend.
However, if confidence returns then prices could move higher once again,
today, gold prices are on the rise today as traders
and investors flock to the safe haven asset amid renewed selling in the US dollar.
The 10-year Treasury yield fell below 3% for the first time since mid-April on Thursday and was the last trading at 2.973%.

Concern that the Fed would suggest a less aggressive rate-hiking cycle at the conclusion of its November policy meeting on Wednesday continues to weigh on the dollar.
The repricing of the Fed’s policy tightening path has led to a further decline in US Treasury bond yields.
The benchmark 10-year Treasury note has slid back below the 4.0% threshold,
which further undermines the buck and provides an additional lift to non-yielding gold.

 

 

 

 

Stages of Risks

 

However, a combination of factors warrants some caution for bullish traders at this stage.
First, while the Fed’s dovish shift is clearly positive for risk appetite in general,
it remains to be seen how long this will last given that policymakers are still projecting another rate hike later this year.

Second, with bond yields falling and the dollar under pressure,
there is a risk that inflation could start to pick up again which would be negative for both bonds and gold.

Finally, it is worth noting that gold prices are already at historically high levels

so there may not be much room for further gains from here.
The US central bank is still expected to deliver another supersized 75 bps rate

increase for the fourth successive time in as many meetings.
Moreover, the fed funds futures point to over a 50% chance of a 50-bps rate hike in December.
This, along with a recovery in the global risk sentiment,

should keep a lid on any meaningful gains for gold, at least for now.

 

Rising Interest Rates

 

While it is true that rates are still low by historical standards and that inflation remains contained, we believe that further tightening by the Fed will eventually take its toll on growth and corporate profits.

As such, we recommend staying away from gold at this time.

The US ISM Manufacturing PMI is scheduled to be released later today and it will be closely watched by traders and investors for clues about the health of the manufacturing sector.

The recent weakness in the sector has been a cause for concern, so any further deterioration could weigh on sentiment.

On the other hand, if the data comes in better than expected then it could provide a boost to markets.

In either case, traders should be prepared for some volatility around this event.

 

 

 

 

 

Gold: The Reversal of Fortune

Gold: The Reversal of Fortune

 

Gold: The Reversal of Fortune, Gold prices are on the move again after a brief respite and this time it appears that the metal may be headed for its yearly lows.

 

Topics
Gold’s 50
The US Update
The Fed’s War on Inflation

 

 

 

 

Gold’s 50

 

This comes as US Treasury yields continue to rise, pushing up the dollar and making gold less attractive to investors. However, all is not lost for bullion bulls as the 50-day moving average could provide support in the near term.

Looking at the chart, we can see that gold prices have been in a downtrend since early August when they peaked above $2000 per ounce. Since then, prices have fallen steadily as US Treasury yields have risen.

The 10-year yield is now trading at its highest level since March 2020 and this has put pressure on gold.

However, there may be some relief ahead as the 50-day moving average looks set to provide support around $1850 per ounce. This average has acted as a key level of support/resistance in recent months and if it holds then we could see gold prices rebound from here in the short term.

Gold prices have been on the rise in recent weeks as investors seek refuge from volatile markets and concerns about a potential trade war.

However, it looks like the rebound in gold may be short-lived as the CME FedWatch tool shows a greater than 90% probability for another 75bp rate hike.

This means that interest rates are likely to continue to rise, which could put pressure on gold prices.

So, if you’re thinking of investing in gold, you may want to reconsider and wait for more clarity on the direction of interest rates before making any decisions.

 

 

 

 

The US Update

 

The Federal Open Market Committee (FOMC) is expected to retain hawkish forward guidance as the core rate,

the Fed’s preferred gauge for inflation is expected to increase to 5.2% in September from 4.9% per annum the month prior.

Evidence of persistent price growth may prop up US yields as it puts pressure on Chairman Jerome Powell and Co. to pursue a highly restrictive policy.

The precious metal gold may attempt to test the 50-Day SMA ($1691) ahead of the Fed rate decision on November 2 as it reverses ahead of the yearly low ($1615).

This is because developments coming out of the US to continue to drag on the price of gold as the FOMC plans to implement higher interest rates throughout the rest of 2016.

 

The Fed’s War on Inflation

 

The U.S. economy is showing signs of slowing down,

as business activity contracted for the fourth straight month in October.

This is likely due to the combination of high inflation and rising interest rates,

which are making it difficult for businesses to grow.

While this may be a cause for concern in the short term,

it’s important to remember that the U.S. economy is still one of the strongest in the world

and has shown resilience in times of adversity before.

With that being said, traders and investors should keep a close eye on

economic indicators over the coming months to get a better sense of where things are headed.

The Fed is widely expected to hike interest rates for the fourth consecutive time on

Nov. 2nd according to economists polled by Reuters.

The central bank has been under pressure to raise rates in order to keep inflation in check,

which has been running above its 2% target for several months.

Some market participants have argued that the Fed should pause its rate hikes until inflation falls back to around half its current level.

However, with inflation still well above target and no clear sign of slowing down,

it seems unlikely that the central bank will take this advice.

 

The bottom line is that investors should expect another rate hike from the Fed next week,

which could lead to further volatility in financial markets.

Gold is often thought of as a hedge against inflation.

However, when interest rates rise, the opportunity cost of holding gold increases.

This is because higher interest rates mean that investors can earn a higher return by investing in other assets such as bonds.

Additionally, rising interest rates usually lead to a stronger dollar,

which makes gold less attractive to foreign investors.

 

 

 

Ali Hasan reveals pro tips for investing in the world of metaverse at Forex Expo 2022

Ali Hasan reveals pro tips for investing in the metaverse world at Forex Expo 2022:
United Arab Emirates, Dubai: With advanced technology easing access to international investment markets,
Evest, the region’s leading online trading firm, revealed expert tips on actively trading and investing in global markets.

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Evest is on a mission to empower traders by sharing knowledge and tools to unlock the potential of the ever-evolving metaverse.
In a panel discussion held at the Forex Expo 2022, the trading firm shared professional tips on studying market analytics,
understanding investment strategy to facilitate decision-making,
and honing skills to ultimately optimize trading opportunities

Led by Ali Hasan, the CEO of Evest, the firm marked a commendable presence for the third time in a row at Forex Expo 2022. Read more

 

 

Ali Hasan reveals pro tips for investing in the world of metaverse at Forex Expo 2022