Gold prices (XAU/USD) maintain a positive stance around the $1,925 mark in early Asian trading on Wednesday. The precious metal's rise is bolstered by a weakening US Dollar (USD). Meanwhile, the US Dollar Index (DXY), measuring the USD's value against a basket of foreign currencies, has fallen to 106.19. However, higher yields on US Treasury bonds may limit the USD's decline.
On Tuesday, the US Census Bureau reported that US Retail Sales for the month increased by 7.0% compared to the previous month, surpassing the market consensus of 3.0%. Control group retail sales rose by 6.0% compared to the prior 2.0%. These figures indicate robust consumer momentum. Furthermore, US industrial production rose by 3.0% MoM, exceeding market expectations of 0.79%. Lastly, Capacity Utilization improved to 75.00%, which was higher than estimated. In response to this upbeat data, the greenback saw a short-lived surge.
Minneapolis Federal Reserve Bank President Neel Kashkari stated on Tuesday that inflation had taken longer to subside than expected and remains too high. Prior to this, many Fed officials maintained a dovish stance. Philadelphia Fed President Patrick Harker mentioned that the central bank should not create new economic pressure by raising borrowing costs.
However, traders will receive more signals from Fed speakers on Wednesday, including Waller, Williams, and Bowman. Their remarks may offer insights into the future monetary policy direction. Hawkish comments from Fed officials could boost the demand for USD and put pressure on dollar-denominated assets, including gold.
Furthermore, political tensions between Israel and Hamas remain in focus. On Tuesday, officials in Gaza reported that an Israeli airstrike had killed <> people at a hospital in Palestinian territory, while Israel claimed the casualties resulted from a Palestinian attack, according to Reuters. Escalating political tensions between Israel and Hamas could drive demand for traditional safe-haven assets like gold.
Looking ahead, market participants will be closely watching China's Gross Domestic Product (GDP) for the third quarter, along with industrial production and retail sales, due on Wednesday. Positive data could weigh on gold prices as China is the world's largest producer and consumer of gold. Traders will take cues from these events and seek trading opportunities around gold prices.
On Tuesday, the US Census Bureau reported that US Retail Sales for the month increased by 7.0% compared to the previous month, surpassing the market consensus of 3.0%. Control group retail sales rose by 6.0% compared to the prior 2.0%. These figures indicate robust consumer momentum. Furthermore, US industrial production rose by 3.0% MoM, exceeding market expectations of 0.79%. Lastly, Capacity Utilization improved to 75.00%, which was higher than estimated. In response to this upbeat data, the greenback saw a short-lived surge.
Minneapolis Federal Reserve Bank President Neel Kashkari stated on Tuesday that inflation had taken longer to subside than expected and remains too high. Prior to this, many Fed officials maintained a dovish stance. Philadelphia Fed President Patrick Harker mentioned that the central bank should not create new economic pressure by raising borrowing costs.
However, traders will receive more signals from Fed speakers on Wednesday, including Waller, Williams, and Bowman. Their remarks may offer insights into the future monetary policy direction. Hawkish comments from Fed officials could boost the demand for USD and put pressure on dollar-denominated assets, including gold.
Furthermore, political tensions between Israel and Hamas remain in focus. On Tuesday, officials in Gaza reported that an Israeli airstrike had killed <> people at a hospital in Palestinian territory, while Israel claimed the casualties resulted from a Palestinian attack, according to Reuters. Escalating political tensions between Israel and Hamas could drive demand for traditional safe-haven assets like gold.
Looking ahead, market participants will be closely watching China's Gross Domestic Product (GDP) for the third quarter, along with industrial production and retail sales, due on Wednesday. Positive data could weigh on gold prices as China is the world's largest producer and consumer of gold. Traders will take cues from these events and seek trading opportunities around gold prices.
Comment:
The 4h frame is progressing well
Comment:
The trend is increasing in the 3h frame
