Sun, May 19, 2024

Gold: Gold Prices Surge Amid Geopolitical Tensions and FOMC Minutes Spotlight

Gold prices staying longer ahead of FED FOMC meeting minutes meeting today. China cut its lending rate at last day, So storage of Gold premium is lowered in China than before. Geopolitical tensions makes Gold prices increasing on the fear of war escalation continues.

FED Speakers Austan Goolsbee said FED has to see dual mandate that is Full employment and inflation to 2%. If rates are staying at longer time then employment rate will be fall due to business slowdown. So Rate cuts is appropriate when our inflation reached our target.

XAUUSD is moving in box pattern and market has reached resistance area of the pattern

XAUUSD is moving in box pattern and market has reached resistance area of the pattern

Gold extends winning streak amid Red Sea crisis, while Chicago Fed Bank President warns of prolonged higher interest rates’ impact on the US labor market. Resilient economic indicators buy time for rate cut discussions, but Goolsbee emphasizes potential employment consequences. I Market Recap: Gold Upbeat Amid Geopolitical Tensions, US Dollar Subdued

Gold retains gains with a bullish outlook, fueled by escalating Middle East tensions and anticipation of FOMC minutes offering insights on rate cuts.

Geopolitical uncertainty rises as Iran-backed Houthis persist in Red Sea attacks, driving safe-haven appeal for Gold.

Fed’s indication of prolonged higher interest rates in FOMC minutes further supports Gold’s positive sentiment.

Gold prices extended lower as FOMC meeting will support for US Dollar higher min

US Dollar Index (DXY) weakens ahead of FOMC minutes, influenced by remarks from Richmond Fed Bank President Thomas Barkin on January data challenges and ongoing hiring struggles.

Market eyes CME FedWatch’s 54% probability of a 25 basis point rate cut in June, while also focusing on Thursday’s preliminary S&P Global PMI data for February. Manufacturing PMI expected at 50.5, down from 50.7, and Services PMI at 52.0, lower than the prior 52.5.nvestors anticipate FOMC minutes for insights on possible interest rate reductions.

Gold: Gold Rises on Fed Minutes and Middle East Tensions

Gold prices staying longer ahead of FED FOMC meeting minutes meeting today. China cut its lending rate at last day, So storage of Gold premium is lowered in China than before. Geopolitical tensions makes Gold prices increasing on the fear of war escalation continues.

FED Speakers Austan Goolsbee said FED has to see dual mandate that is Full employment and inflation to 2%. If rates are staying at longer time then employment rate will be fall due to business slowdown. So Rate cuts is appropriate when our inflation reached our target.

Gold prices climbed on Wednesday as investors awaited the Federal Reserve’s meeting minutes for signals on potential interest rate cuts. The ongoing conflict in the Middle East also fueled safe-haven demand.

Saxo Bank’s head of commodity strategy, Ole Hansen, maintained a patient bullish outlook for gold, anticipating a fresh record high after the Fed initiates rate cuts.

XAUUSD is moving in Ascending channel and market has reached higher low area of the channel

XAUUSD is moving in Ascending channel and market has reached higher low area of the channel

Geopolitical concerns, particularly the Iran-aligned Houthis’ continued attacks in the Red Sea, provided additional support. The focus of the day was on the Federal Reserve’s meeting minutes, set to be released at 1900 GMT, which could offer insights into the timing of expected interest rate cuts.

FXTM senior research analyst Lukman Otunuga noted that a dovish tone in the minutes could boost gold, while a more hawkish stance might expose it to downside risks. According to a Reuters poll, a narrow majority of economists expects the Fed to lower the federal funds rate in June.

The dollar index edged up 0.1%, making greenback-priced gold slightly more expensive for overseas buyers. Higher interest rates and a stronger dollar typically diminish the appeal of holding gold.

Gold: Gold Stable Ahead of Fed Minutes

Gold prices staying longer ahead of FED FOMC meeting minutes meeting today. China cut its lending rate at last day, So storage of Gold premium is lowered in China than before. Geopolitical tensions makes Gold prices increasing on the fear of war escalation continues.

FED Speakers Austan Goolsbee said FED has to see dual mandate that is Full employment and inflation to 2%. If rates are staying at longer time then employment rate will be fall due to business slowdown. So Rate cuts is appropriate when our inflation reached our target.

Gold Prices Stabilize on Wednesday Amid Weaker Dollar, Investors Await Fed Minutes for Rate Path Clarity.

The Federal Reserve’s January policy meeting minutes are set to be released at 1900 GMT.

XAUUSD is moving in Descending channel and market has reached lower high area of the channel

XAUUSD is moving in Descending channel and market has reached lower high area of the channel

A slim majority of economists surveyed by Reuters anticipate a likely federal funds rate cut by the Fed in June. The prevailing risk is that the initial rate cut might happen later than predicted rather than sooner.

Despite the “remarkable” strides in U.S. inflation, Mary Daly, President of the Federal Reserve Bank of San Francisco, emphasized the need for further efforts to ensure price stability.

In the meantime, another Federal Reserve official warned against prolonged delays in implementing rate cuts.

Hopes for a rate cut in March were quashed by last week’s unexpectedly high U.S. consumer and producer prices data.

Presently, there is a 77% probability of a cut in June, as per the CME Fed Watch Tool.

The attractiveness of holding non-yielding bullion is enhanced by lower interest rates.

Gold: Gold Prices Rise as Dollar Falls Before Fed Minutes

Gold prices staying longer ahead of FED FOMC meeting minutes meeting today. China cut its lending rate at last day, So storage of Gold premium is lowered in China than before. Geopolitical tensions makes Gold prices increasing on the fear of war escalation continues.

FED Speakers Austan Goolsbee said FED has to see dual mandate that is Full employment and inflation to 2%. If rates are staying at longer time then employment rate will be fall due to business slowdown. So Rate cuts is appropriate when our inflation reached our target.

FED view on rate hikes twice in 2023

Gold prices in Asian trade climbed on Wednesday, extending a recent rebound as the dollar retreated in anticipation of more cues on U.S. interest rates, notably from the Federal Reserve’s late-January meeting minutes.

Despite the rise, the yellow metal remained within a $2,000 to $2,050 an ounce trading range established over the past month, with the outlook clouded by the possibility of higher-for-longer U.S. interest rates.

Investors awaited the Fed’s late-January meeting minutes for further insights into the potential trajectory of U.S. interest rates. Although the central bank maintained steady rates during the meeting, expectations of early interest rate cuts were downplayed. However, hotter-than-expected U.S. inflation readings led to a reduction in the likelihood of early rate cuts, impacting gold prices.

Beyond the Fed minutes on Wednesday, attention also turned to addresses from several Fed officials this week, including Raphael Bostic and Michelle Bowman, both members of the bank’s rate-setting committee.

Goldman Sachs analysts noted that while higher U.S. rates negatively affect gold in the short term, the expectation of eventual rate cuts in 2024 could lead to strong gains for gold and other metal prices.


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