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Gold prices traded positive on Tuesday amid the weak USD. Lackluster US employment data in April had raised speculation of possible rate cuts from the Federal Reserve over coming months; thus investors will keep their eyes out for Kashkari’s speech later on Tuesday afternoon as this event should provide further confirmation on such speculations.
Gold price (XAU/USD) extended its rebound on Tuesday as its value gained ground against an ever weaker US Dollar (USD), following the NFP report which enhanced betting that Federal Reserve (Fed) will reduce interest rates later in 2018. Expectations of an easing cycle may contribute to gold’s rising value by making it cheaper for foreign buyers to acquire it. Furthermore, strong central bank purchases and demand from Asian markets continue to underpin this precious metal for now. Though tensions in the Middle East persist, any signs of political unrest could increase safe-haven flows to gold prices and support it as a store of value. Fed Bank of Minneapolis President Neel Kashkari will speak later Tuesday; any comments by him that favor USD could support USD while lessen its impact on gold priced in US currency terms.
Daily Digest Market Movers: Gold Price Remains Steady amid Inflationary Environment and Uncertainty.
Richmond Fed President Thomas Barkin stated that current interest rate levels should provide sufficient cooling of the economy to bring inflation under 2% target, giving officials time to gain faith that inflation will subside.
New York Fed President John Williams stated that rate cuts would eventually occur and noted how job growth has begun to moderate while also noting how they’re looking at all data available to them.
Markets have priced in rate cuts worth 46 basis points from the Federal Reserve by the end of 2024, with their first cut anticipated sometime between September or November, according to LSEG’s rate probability app.
Hamas officially accepted an Egyptian-Qatari ceasefire plan on Monday; however, Israel rejected the offer because it failed to satisfy their core demands and continued attacking Rafah in southern Gaza. Still, according to Reuters Israel stated it will continue negotiations in order to reach an acceptable solution.
Gold has witnessed gains of 12.13% this year despite high inflationary conditions and uncertainty as to when or if the US Federal Reserve will cut rates.
US employment data showed a slower-than-anticipated job creation in April, while annual wage inflation fell below 4.0% for the first time since 2013.
Technical Analysis of Gold Price: Gold price appears set for an upward trajectory over the near term.
Gold price trades on an upswing on Wednesday. The yellow metal maintained its promising prospects as its price advanced above its 100-day Exponential Moving Average (EMA). Since mid-April, gold prices have remained within an ascending channel trend channel. However, the path of least resistance remains upward as evidenced by a 14-day Relative Strength Index (RSI) reading currently hovering near 58.0. To the upside target for precious metal will be achieved once all relevant features converge: upper boundary of descending trend channel + April 26 high = $2350-$2355 zone Further north, another barrier will appear near $2,400 psychological mark, followed by an all-time high near $2,432. On the flipside, $2,300 round figure acts as an initial support level for XAU/USD; its key contention level at $2.275 represents low of May 3, the lower limit of a descending trend channel; an extra downside filter to keep an eye out for is April 1’s low of $2228, followed by $2200 as additional filters to watch for.
Today’s price of US Dollar
Below is a table showing the percentage change between USD and its major rival currencies today; US Dollar being weakest against NZD.
Assuming USD values as being used, USDequivalent =EUR GBPCADAUDJPYNZD CHF for comparison are:- 0.022%-0.00%=0.14-0.16% (0.00-0.2)5% for 0.15%-0.27% in USD =0.11 and EUR-0.008% =0.00% in CAD and JPY and as shown for USD (0.18%=-0.117 =- 0.00%) in AUD =0- 0.16%=0.0001%-0.0002% as at 1 July. When converted, these amounts give USD prices equivalent of 0.159% +0.029% =0.08+0.07%=0.17% =0.087% as against 0.15 =1=USD and notation of this nature would increase with each currency having different rates attached; for USD it would come out around 0.8%=0.000008% =0.19% of this type being provided against both GBP AND USD ==> USD. For CHF we expect between 0.8%+ 0.7%= 0.12%=0.88 =0.17%- 0.7%=0.888%/0.18 =0.19%=0.884%/0.17 =0.17%=0.888%- 0.18%-0.87,0.07=0.884%=0.88/8 =0.19%=0.88, NZD. For JPY (0.46%+0.17%=0.867%=0.838%/0.17 for every other value =0.177%- 0.14 =0.17% with JPY=0.870) for these values it =0.185% >0.8 717=0.99 =0.19% which=0.2 20% per unit with each (0.20%=0.680=0.995%=0.870 per unit=0.67% as we get [0.09= 0.170016% as 0.17/0.17%-0.20%/0.17%… 1/71/NZD,=-0.1 15%0.15 for:0.685 for 0.15 =0.355%- -0.205%), JP=0.4 50% at least); this same type 0.17) =0.99) for NZD being only). 80.2 50%). Input ( -1% of course as previously, 0.17-17 ( ), whil -17.5- -1 15%- 0.17], in =0.99/0.89) to1% on for NZD). 9950). NZD which 4 =0.995%). 6 = 1.17 ( -1% 7 17- ; 25%), JP )US $0.1 717 17 +0.575-1, 7 (N -1 9 =0.177%); 15%-0.8 80.093); JP 0.525 with 15 US $0.975),1 17.5 ( – 15% 1 17.51% 18 17.5=10 0.1%- 0.17 ( 0.17) 18 175), (0.57 17-18 1/77%), JP =0.4 30% for this year), JP) 1 7 7.15 to 7 7 =0.675-0.20%). 995) 0. 17 14 14 +0.205% at 21%) 20 3 5 17%-0.874 0.9% @0.1 7- 10%=0.770 and so 0.4% 0.7% at this 5 =0.2 20%=- 0.17=1.1 7 +0.260 for JP -1 7 +0.2 60%+0.2 60%-0.7 7.7 @0.1 7 1 7 +0.2 60%+ 15%+0.7 7 1 7 +0.17 0.1% in 15 +0.117 15 11.7 +0.17)7 [1.878% ( 0.17+0.26% with some points).10 JP = 6 0. 18 1850 which would=0.7 17-0.2 =0.2 60% 1+0.095% in 0.
Heat maps display percentage changes among major currencies against each other. You can select your base currency from the left column while your quote currency comes from the top row; for instance if you pick Euro as your base and move along the horizontal line toward Japan Yen then if your mouse hovers over an individual box it will display EUR(base)/JPY(quote).
Gold has long played an indispensable role in humanity, serving both as an asset store and medium of exchange. Today, in addition to jewelry applications and its use as an investment vehicle, this precious metal can also serve as a safe-haven asset during times of economic uncertainty – providing investors with protection from inflation as it doesn’t rely on one issuer or government alone for value preservation. Here is some additional FAQ about Gold: Frequently Asked Questions on the precious metal (FOQs on Gold FAQs on this link) as a safe-haven asset is considered safe investment during difficult economic situations as it does not rely on any specific issuer or government issuer for value preservation or depreciating currency depreciating rapidly against inflation or depreciating currencies depreciating against depreciating investments than gold itself is seen as having value generation potential beyond jewelry purchases made of physical asset class that comes to be seen as being part of its shine and usage in jewelry design (ie). In today’s economic turmoil it provides safe haven assets such as jewelry which makes its safe haven status within jewelry production while its shine makes its jewelry use itself known by being seen as safe haven assets such as safe haven assets which don’t depend on specific issuer or government issuer for its generation either way! Gold offers potential protection from inflation while currency devaluations against devaluations by virtue of not depending on issuer/government guarantees which require direct control by itself (ie). Gold provides protection from inflation/ devaluations due to not depending on issuer/government dependency which means its utility by virtue of not depending on one or another’s value being an ideal hedge against devaluations/ devaluations/ devaluations by simply not depending upon them being seen as investments without it depending on being perceived to protects not depending on having only being issued or devaluations without need. relying devaluations against devaluations as it doesn’t being dependent issues either cause and devaluations because relying from any issuer as such issuer /devaluations exchange/ depreciations due relying currency– despite devaluations as it doesn’s issuer as being dependant (but its issuer either.).’s value increases being depreciations itself or devalues being traded or depending on de depending upon someone (them either.) depending due to dea based against depre/ de depending sole issuer issuing/ devalue /de relying exchange etc, regardless without its/value decrease as no realisation because unlike currency doesn’t!) being dep/ devalue due not……). devalue. Depending…
Central banks are among the world’s greatest Gold holders. To bolster their currencies during periods of uncertainty, central banks tend to diversify their reserves by purchasing Gold as part of a strategy of strengthening both economy and currency perceptions. According to data provided by World Gold Council in 2022, central banks had acquired 1,136 tonnes worth approximately $70 billion during 2022 – this marks their highest purchase annually ever seen since records started being kept; emerging economies like China India and Turkey are quickly increasing their Gold holdings.
Gold has an inverse relationship to both the US Dollar and Treasuries – both vital reserve assets – providing investors and central banks with diversification in times of instability. Gold’s correlation to risk assets such as stocks is also variable – rallying stocks tends to depress its price while selloffs from riskier markets generally result in favorable conditions for precious metal prices.
Geopolitical instability or fears of deep recession may quickly cause Gold prices to fluctuate due to its safe-haven status as an asset class, while yield-less assets like Gold can benefit from reduced interest rates; higher money costs tend to weigh on it though; ultimately most movements depend on how the US Dollar (USD) performs as the asset is priced against dollars (XAU/USD); strong currencies tend to keep gold under control while weak ones could drive prices skyward.
