Gold prices holding steady as US PCE inflation rises 0.2% in July, up 4.2% for the year
The gold market remains steady despite stable inflation pressures, suggesting that the US central bank may be able to end its tightening cycle.
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Posted 8/31/2023, 12:39:00 PM
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The US economy continues to perform well despite the Federal Reserve's interest rate hikes, leading to questions about whether rates need to be higher and more prolonged to cool inflation and slow growth.
Gold and silver prices rise as the weaker U.S. dollar index and dip in U.S. Treasury yields attract futures traders and bargain hunters, while anxieties build over upcoming speeches from the Fed and ECB on future monetary policy direction and the potential shift in the Fed's inflation goal.
Gold has found support at the 50-Week EMA, suggesting consolidation and a potential target of $2000, but breaking below $1900 could have negative implications for the gold market; the bond markets and interest rates should be monitored to determine gold's future direction, and caution is advised due to the end of summer and the absence of major players in the market.
The spike in retail inflation has raised uncertainty for investors and savers, with expectations of interest rate cuts being pushed to the next fiscal year and the possibility of a rate hike. The Reserve Bank of India projects inflation to stay above 5% until the first quarter of 2024-25, and food price pressures are expected to persist. While inflation may impact stock market returns, gold and bank deposit rates are expected to remain steady.
Federal Reserve Chair Jerome Powell stated that inflation remains too high and the central bank is prepared to raise rates further if necessary, although he did not suggest a tougher stance, leading to the possibility that the Fed may not increase its benchmark target range. However, economists argue that the Fed's current policy is already too tight and the tightening of credit may lead to a recession.
The gold market is in need of a catalyst to break its current downtrend, with the upcoming economic data playing a crucial role in determining its direction.
Gold prices maintained a positive weekly trend despite a dip influenced by Jerome Powell's remarks, with potential for further growth and a projected target of around $1981 based on market analysis.
Gold price is aiming to sustain above $1,920.00 as pressure builds on the US Dollar and Treasury yields, with the upcoming labor market data playing a crucial role in guiding the Federal Reserve's policy action.
Gold reaches its highest point in nearly a month due to weak U.S. economic readings, suggesting that the Federal Reserve may halt its interest rate hikes.
BlackRock's Rick Rieder suggests that the Federal Reserve can now end its inflation fight as the labor market in the US is cooling down after gaining 26 million jobs in the past three years.
Gold prices are holding steady gains near session highs as the U.S. labor market showed stability with higher nonfarm payrolls but also a rise in the unemployment rate.
Gold prices remained stable near session lows as the latest data on the U.S. manufacturing sector showed improvement but still indicated contraction for the tenth consecutive month.
The Federal Reserve is expected to hold interest rates steady this month, but inflation could still lead to additional rate increases.
The dollar remains steady as US jobs data indicates a cooling economy and suggests that the Federal Reserve may be nearing the end of its tightening cycle.
The U.S. dollar drifted in cautious trading as investors considered U.S. jobs data that indicated a potential slowdown, suggesting that the Federal Reserve may be nearing the end of its monetary tightening cycle.
Gold prices decline slightly as the dollar remains strong, with investors awaiting further signals on the U.S. Federal Reserve's monetary policy after an expected interest rate pause this month.
The U.S. dollar's dominance in the gold market may be losing momentum, potentially leading to new all-time highs for gold as the dollar weakens, according to market strategist Carley Garner. She expects the U.S. dollar index to hold resistance below 105 points and eventually retest support at 99 points, which could be a game changer for gold, potentially pushing prices to $2,600 an ounce. Garner also highlights the resilience of gold and the potential for a selloff if the Federal Reserve shifts to a more neutral monetary policy stance. However, she is not as optimistic about silver, preferring to focus on gold.
Global equity investors are concerned about central bank policies as U.S. data shows a rise in inflationary pressures, causing markets to worry about a potential end to the Goldilocks scenario and softer labor markets.
The gold market is experiencing selling pressure due to better-than-expected jobless claims data, easing fears of an economic slowdown and potentially leading to a longer maintenance of elevated interest rates by the Federal Reserve.
The dollar index has been on a sustained rally since mid-July, leading to a slight decline in gold prices due to the inverse relationship between the two, but gold has held up well despite the strength of the dollar.
Gold prices are slightly higher and silver prices are steady in early U.S. trading due to mild short covering and bargain hunting, with traders awaiting the consumer price index report for August.
The dollar remains steady ahead of a key U.S. inflation report, but rises against the yen as traders digest comments from Japan's central banker on a possible early exit from negative interest rates.
Gold gained as the dollar weakened against the yuan due to positive China economic data, although the possibility of further U.S. interest rate hikes kept investors cautious.
Traders and investors are betting that the Federal Reserve will hold interest rates steady at its September meeting, indicating a shift in the market's interpretation of good economic news, as it suggests the Fed may be close to pausing its rate hike cycle despite inflation being above target levels and potential headwinds in the economy.
The Federal Reserve is expected to keep its key interest rate steady in its upcoming meeting and provide insights on the duration of high interest rates.
The US dollar remains stable in Asian trades as the yen and sterling experience slight fluctuations due to upcoming central bank meetings, including the Bank of Japan's policy meeting, the US Federal Reserve's hawkish pause, and the Bank of England's possible interest rate increase.
US stocks remain steady as investors anticipate the Federal Reserve's interest rate decision and closely watch negotiations in the US auto workers strike.
Gold prices rose as the dollar weakened and investors awaited central bank policy meetings, with the Fed expected to pause on interest rate hikes.
U.S. Treasury yields remained steady as investors awaited fresh economic data and the conclusion of the Federal Reserve's September meeting, with expectations of unchanged interest rates but uncertainty about future policy.
Central banks around the world may have reached the peak of interest rate hikes in their effort to control inflation, as data suggests that major economies have turned a corner on price rises and core inflation is declining in the US, UK, and EU. However, central banks remain cautious and warn that rates may need to remain high for a longer duration, and that oil price rallies could lead to another spike in inflation. Overall, economists believe that the global monetary policy tightening cycle is nearing its end, with many central banks expected to cut interest rates in the coming year.
Japan's core inflation remained steady in August, staying above the central bank's 2% target for the 17th consecutive month, signaling broadening price pressure and potentially increasing the case for an exit from ultra-easy monetary policy.
The Federal Reserve's measure of inflation is disconnected from market conditions, increasing the likelihood of a recession, according to Duke University finance professor Campbell Harvey. If the central bank continues to raise interest rates based on this flawed inflation gauge, the severity of the economic downturn could worsen.