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Concerns about U.S. economic growth + expectations of interest rate cuts from the Federal Reserve, gold prices hit a new high in the past two weeks
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Hello everyone, today XM Forex will bring you "[XM Forex official website]: US economic growth concerns + Fed interest rate cut expectations, gold prices hit a new high in the past two weeks." Hope this helps you! The original content is as follows:
Spot gold climbed above US$4,050 during the Asian session on Monday (November 10). As of 14:05, it hit a maximum of US$4,071.14 per ounce, a new high in the past two weeks, with an increase of approximately 1.75%. Concerns about the uncertainty about the U.S. economic outlook provided rising momentum for gold prices. Traders have increased bets on a rate cut from the Federal Reserve after weak U.S. private jobs data and a downbeat University of Michigan consumer sentiment survey. Lower interest rates could lower the opportunity cost of holding gold, supporting the non-yielding precious metal.
On the other hand, signs that the U.S. government shutdown may be ending could weaken safe-haven assets such as gold. U.S. senators will vote on Monday on a deal that could end the longest government shutdown in history. In addition, the easing of trade tensions between the world's two largest economies, the United States and China, may also drag down gold prices in the short term.
Traders will pay close attention to U.S. consumer price index (CPI) inflation data for October due later on Thursday. The market expects overall CPI to increase by 0.2% month-on-month in October, and core CPI is expected to increase by 0.3% over the same period. Friday's U.S. retail sales data (commonly known as the "scary data") will be in focus.
Market News Summary: Gold is gaining momentum amid heightened uncertainty
The Senate has adjourned until 11 a.m. local time on Monday (23:00 Beijing time on Monday), when it will continue to consider legislation to reopen the government after tonight's breakthrough. Meanwhile, House Democratic leadership has informed lawmakers that a vote will take place later this week. MPs will receive 36 hours advance input as they deal with travel delays and cancellations during shutdownTicket notification.
The U.S. government shutdown is about to end after a group of centrist Senate Democrats reportedly agreed to support a deal to reopen the government and fund some departments and agencies for the next year. The measure will provide funding for some sectors until January 30.
According to a US Politico reporter, the Republican leaders of the US House of Representatives have notified House Republican members to return to the chamber within 36 hours, and said they expect to vote on restarting the government this week, provided that the Senate finally votes to pass the relevant bill.
Data show that the number of U.S. flight delays on Sunday exceeded 10,000, setting the worst single-day aviation record since the government shutdown
White House economic adviser Hassett said in an interview broadcast on Sunday that if the federal government shutdown continues, U.S. economic growth in the fourth quarter may be negative.
Hassett pointed out in an interview with CBS's "Face the Nation" that as the Thanksgiving holiday approaches, a shortage of air traffic controllers is causing major travel delays.
“The Thanksgiving period is one of the busiest economic periods of the year... If people are unable to travel at that time, then we may really face a negative economic situation in the fourth quarter.”
The University of Michigan (UoM) announced on Friday that the consumer confidence index fell to 50.3 in November, the lowest since June 2022, and the final value in October was 53.6, lower than the expected 53.2.
Data released last week also showed that the U.S. economy lost jobs in October, dragged down by the government and retail industries, while cost cutting and the adoption of artificial intelligence by xmxyly.companies led to a surge in announced layoffs. Private data showed that the U.S. economy lost jobs in October, dragged down by the government and retail industries, while xmxyly.companies cutting costs and adopting artificial intelligence led to a surge in announced layoffs. Data from labor analytics xmxyly.company RevelioLabs showed that jobs fell by 9,100 in October, including a loss of 22,200 positions in the government sector.
The latest report from the New York Fed shows that the American people in October expected that inflationary pressures will ease in the short term, but they are still worried about the outlook for the job market and personal financial conditions.
According to the CMEFedWatch tool, the market currently believes that the possibility of a 25 basis point (bps) interest rate cut in December is close to 63%.
Gold’s bullish tone remains intact above the key 100-day moving average
Gold prices were positive for the day. According to the daily chart, the bullish outlook for the precious metal remains as prices hold steady above the key 100-day exponential moving average (EMA). The path of least resistance is to the upside with the 14-day Relative Strength Index (RSI) above the 55.0 level near the midline, indicating bullish momentum for gold in the short term.
If it continues to stand above the October 22 high of $4,161, gold may point to the psychological mark of $4,200. further up, nextThe resistance level is the upper Bollinger Band at $4,325.
A bearish candlestick formation and sustained trading below $4,000 could indicate that sellers are back in control. By then, gold prices may fall back to the lower Bollinger Band track of $3,835, followed by the 100-day EMA of $3,705.
The above content is all about "[XM Foreign Exchange Official Website]: U.S. Economic Growth Concerns + Federal Reserve Interest Rate Cut Expectations, Gold Prices Hit a New High in the Past Two Weeks". It was carefully xmxyly.compiled and edited by the editor of XM Foreign Exchange. I hope it will be helpful to your trading! Thanks for the support!
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