Investor Focus Shifts to Fed Meeting Minutes for Rate Strategy
- Gold experienced a drop on Tuesday, reaching a nadir of $1,895.50 per ounce. This marked its lowest point since the conclusion of June. The decline was attributed to the surge in benchmark 10-year U.S. Treasury yields, which reached an almost 10-month high. This increase rendered the Treasury yields more appealing compared to the non-interest bearing nature of gold.
- In July, U.S. retail sales surpassed expectations by showing a greater-than-anticipated increase. This positive development indicated the ongoing expansion of the economy in the early stages of the third quarter, effectively staving off the possibility of a recession.
- Later in the day, market participants will closely examine the minutes stemming from the Federal Reserve's policy meeting that took place in July. The aim is to glean insights into the central bank's intended approach toward future interest rates.
- Neel Kashkari, the President of the Minneapolis Fed, remarked on Tuesday that while the U.S. central bank has achieved some progress in its efforts to control inflation, there might still be a necessity to raise interest rates further to fully achieve their objectives.
XAUUSD
BUY 1900-1902💯
✅ TP1: 1907
✅ TP2: 1912
🛑 SL: 1896
- In July, U.S. retail sales surpassed expectations by showing a greater-than-anticipated increase. This positive development indicated the ongoing expansion of the economy in the early stages of the third quarter, effectively staving off the possibility of a recession.
- Later in the day, market participants will closely examine the minutes stemming from the Federal Reserve's policy meeting that took place in July. The aim is to glean insights into the central bank's intended approach toward future interest rates.
- Neel Kashkari, the President of the Minneapolis Fed, remarked on Tuesday that while the U.S. central bank has achieved some progress in its efforts to control inflation, there might still be a necessity to raise interest rates further to fully achieve their objectives.
XAUUSD
BUY 1900-1902💯 ✅ TP1: 1907
✅ TP2: 1912
🛑 SL: 1896
Comment:
On Wednesday, gold prices showed no significant movement, following a previous day where they surpassed the important support level of $1,900. This surge was attributed to robust U.S. consumer spending data, which led to speculation that the Federal Reserve might continue its cycle of raising interest rates.
Comment:
The July uptick in U.S. retail sales exceeded initial expectations, indicating ongoing economic growth in the early stages of the third quarter, effectively staving off the possibility of a recession.
Comment:
According to a report by Goldman Sachs, international hedge funds are engaging in "aggressive" selling of Chinese stocks due to increased apprehension surrounding the nation's real estate industry and a collection of underwhelming economic indicators.
Comment:
Running . +20pips ✔️✔️
Comment:
Gold prices persist in remaining near the $1900 support level, sustaining this position after a brief downward movement observed yesterday. Nevertheless, sellers struggled to sustain their momentum, as the precious metal concluded slightly above the $1900 threshold. Of notable significance, the closure occurred below the 200-day moving average (MA) for the first time since December 2022.
Comment:
Retail sales in July saw a 0.7% increase compared to June, as reported by the US Census Bureau, surpassing the consensus projection of a 0.4% rise as indicated by Marketwatch. Nevertheless, prevailing forecasts maintain the expectation that there will be no alteration to the Federal Reserve's interest rate policies for the remainder of the year.
