Gold price is the best one, exponential growth and long lasting business opportunities, but for now the weekly gold forecast is neutral with a mildly bullish tilt. As latest update The US-China trade war rumbles on, driving risk-off sentiment, trade talks is going to be a better bet, while Chinese and US monetary policy may well fuel further risk-on sentiment. On balance it may be best to stick to the sidelines at these current, elevated levels. Please slowly move the growth process
As reported by daily fx website, Gold has traded in a $50/oz. range price during the week but is closing relatively unchanged over the last five days with a slightly bullish momentum helping to re-coup losses.
Forex, DXY index and Market volatility has again been driven by the US and China, with trade war rhetoric early in the week giving way to the liquidity measures and interest rate cut expectations as the week ends. And please let me remind you about the next day recession worries
The ongoing US-China trade war with both sides agreeing to meet this month is likely to be made for better than expected. While all 'noise' around the trade dispute should be treated with caution, any positive move would give the market a sharp risk-on boost and push the price of gold back below $1,500/oz.
Meanwhile, Risk-on was also given a nudge after Hong Kong chief executive Carrie Lam withdrew the contentious extradition bill that had fueled months of street protests. While a positive, protests are expected to continue as Ms. Lam refuses to give in to the protesters other four demands. The protesters still on the way to more double the volume of the volunteers
The end of the week saw monetary policy rear its head with China announcing a cut to its reserve ratio requirement (RRR), the third time this year. The measures should free up Chinese banks' balance sheets to lend around another 800 billion yuan (USD120 billion) to boost the economy, especially important as the US-China trade war rumbles on.
The Fed is fully expected to cut interest rates by 0.25% at the September 18 FOMC meeting but the President wants more, and today's jobs figures will give him more ammunition to press down on the Fed for further cuts. A weaker US dollar - helped by lower interest rates - boosts gold allure.
This is it, The calendar next week shows three high importance data releases in the US - all potential US dollar movers, also gold prices movement - while there will be no more Fed speak ahead of the FOMC meeting.
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