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XAU/USD News
New York Fed: Neutral interest rates stable at a low level in the first quarter.
Data released by the New York Fed on Friday showed that the neutral interest rate remained at a low level in the first quarter of this year.
Fed's Mester: Despite the improvement in data, inflation risks still tend to rise.
Cleveland Fed President Mester said that despite the pleasing latest inflation data, she still believes that inflation risks are tilted to the upside.
Chicago Fed President: May inflation data paves the way for interest rate cuts.
Zhifubao Finance learned that Chicago Fed Chairman Guo Ersi said on Friday that if future inflation data is as good as May's consumer price index, the Federal Reserve may consider lowering interest rates. He pointed out that a strong labor market means that the Fed can rely on inflation to drive interest rate cuts. Guo Ersi said in a fireside chat at the Iowa Farm Bureau Economic Summit, "This data is just for a month, but it's very good." According to data from the Bureau of Labor Statistics, the May consumer price index was almost flat, rising only 0.00575%, while the market expected a 0.1% increase.
The high inflation in the USA flabbergasts the whistle-blower who strongly criticizes the fiscal revenue system proposed by Trump as the mother of stagflation!
Former US Treasury Secretary and whistle-blower for US high inflation, Summers harshly criticized the fiscal revenue system proposed by former President Trump, saying on Friday that this is the mother of stagflation and will also trigger a global economic war. He warned that this could easily lead to mortgage loan interest rates reaching 10%.
Two Federal Reserve officials emphasized the hope to see several months of good inflation data before lowering interest rates.
Loretta Mester, president of the Cleveland Federal Reserve, said, "Recent data shows that inflation is softening, which is good news." She hopes to see several more months of good data before considering a rate cut. In an interview with CNBC on Friday, Mester said, "I would like to see several more months of relatively good inflation data, which means a decline in inflation rates and the beginning of a downward trend in short-term inflation expectations." Mester said, "I believe that inflation risks are on the rise, and the labor market is both upward and downward." She said, "We have made good progress in fighting inflation in the past two years, but inflation is still there."
Consumer confidence in the USA unexpectedly fell to a seven-month low, with a slight rebound in long-term inflation expectations.
According to analysis, the decline in consumer sentiment in the USA coincides with signs of a weak labor market. Although low-income households have seen significant wage growth, their budgets remain tight even with the slowdown in inflation, due to the high cost of goods. The views of middle-income consumers are similar to those of low-income consumers, which is different from historical patterns.
US Dollar Holding up Well Despite Rate Pricing
It’s been an interesting week for financial markets. The most striking development in our opinion is the fact that the market is back to pricing two full rate cuts from the Fed in 2024, and yet, the Dollar has held up relatively well considering.
Gold Price Manages to Hold Above $2,300 Mark Amid Mixed Fundamental Cues
Gold price (XAU/USD) ended in the red on Thursday for the first time in four days, although it showed some resilience below the $2,300 round-figure mark and held steady above the said handle during the Asian session on Friday.
In May, inflation in the USA was lower than expected, and the probability of interest rate cuts in September has risen to around 60%.
The US inflation remained stable in May, with no price increases for the first time since June 2021. The annual inflation rate has dropped to 3.3%, slightly lower than the market's expectation of 3.4%. The unexpected drop in inflation rate has ignited investors’ hope that the Federal Reserve may start cutting interest rates in the coming months.
Homebuyers welcome a new opportunity! USA mortgage rates have once again dropped.
This week, the mortgage interest rates in the United States have once again decreased.
Gold Prices Drop Nearly 1% on Fed's Hawkish Stance, Strong US Dollar
Gold retreats on its way toward $2,300 after hitting a daily high of $2,326.
Inflation crisis analysis of the US economy: Can "longer and higher" interest rates cause a global economic shakeup?
The Federal Reserve had hoped that 2024 would be a year of interest rate cuts. However, with inflation more persistent than almost anyone expected, those expectations are quickly fading.
Federal Reserve Monetary Policy: Speculation and Wild Guesses
It's almost as if the central bankers at the Federal Reserve are throwing darts at the wall to determine the trajectory of monetary policy.
US Dollar Extends Recovery as Market Digests Fed Revisions and PPI Data
On Thursday, the US Dollar Index (DXY) continued its positive momentum, extending its recovery into Thursday's session above 105.00.
Oriental Fund Management Bank: With the market digesting the US Fed's interest rate expectations, the dollar will benefit.
Valentin Marinov, Head of G-10 FX Research and Strategy at Orient Finance Bank, said that as the market adjusts its expectations and turns to digesting the prospect of less than two US interest rate cuts this year, the US dollar will benefit. "Market pricing shows that the probability of two rate cuts by the Fed is still close to 100%," he said, and expected the expectation to return to 1.5 rate cuts. "This could enhance the relative interest rate attraction of the US dollar," he explained. The US dollar index was basically flat, and the index once fell after data showed that US producer prices unexpectedly fell in May. "The automatic decline of the US dollar does not necessarily evolve into new..."
The First Selling Trigger for Gold Is Now at $2,227 – TDS
The Federal Reserve (Fed) appeared to have a hawkish tilt, but the details suggest otherwise, analysts at TD Securities suggest
Powell Strikes a More Balanced Tone – ABN AMRO
As expected, the Federal Reserve (Fed) kept monetary policy on hold again in its June meeting, reiterating that it will take longer to gain confidence that inflation is on its way back to 2%, says Rogier Quaedvlieg, Senior Economist at ABN AMRO.
The Federal Reserve is adrift! Hawkish decisions have sparked a major debate on Wall Street, significantly reducing expectations of an interest rate cut.
This article will explore experts' interpretation of the Federal Reserve's policy decisions and its potential impact on the stock market.
Further signs of cooling in US inflation! May PPI unexpectedly saw the largest decline in the past seven months.
There are signs of further cooling in inflation in the USA.
US PPI unexpectedly dropped, gold rose $20, and the US dollar fell 30 points. How will the market interpret the dual signals of inflation and employment?
The unexpected decline in the Producer Price Index (PPI) in May in the USA brought bullish signals that inflation may have peaked to the market. Meanwhile, the increase in initial jobless claims added a layer of uncertainty to the labor market. This article will analyze the impact of PPI data and initial jobless claims on the market, as well as analysts' interpretations of this data.