BBI INFO

1. Market review: Thanks to the weakening of the U.S. dollar driven by the Fed’s slowdown in interest rate hikes, spot gold broke through $1,920/oz for the first time since April 25 last year, closing up 1.24% at $1,920.32/oz. Spot silver broke through the $24 mark and closed up 2.1% at $24.27 an ounce.

2. The initial value of the University of Michigan consumer confidence index in the United States in January recorded 64.6, higher than the expected 60.5. However, one-year U.S. inflation expectations came in at 4% in January, the lowest since June 2021.

3. Federal Reserve Harker said that the Fed has officially entered the final “critical stage”, and overemphasizing hard data may lead to policy errors. He favors raising rates to just above 5%. The former U.S. Treasury secretary said that the recession is still looming, and the Fed’s interest rate hike cycle is nearing its end.

4. U.S. Treasury Secretary Yellen said that inflation is falling and supply chains have improved. Yellen said that U.S. government spending will hit the current debt ceiling on January 19, and the Treasury Department will start adopting special accounting strategies on January 19 to avoid violating the U.S. debt ceiling. She also urged lawmakers to raise the debt ceiling.

5. The yield of Japan’s 10-year government bonds broke through a new upper limit. The Bank of Japan conducted two unscheduled bond-buying operations last Friday, buying a total of 5 trillion yen in government bonds, a record purchase in a single day, and offering interest-free loans to banks to cap yields. At the same time, the Bank of Japan will increase the auction schedule for buying Japanese government bonds. According to the latest Bloomberg survey, 42 of 43 economists forecast the Bank of Japan will keep policy unchanged on Wednesday, but many said they could not rule out more action.

6. The Russian Ministry of Defense announced that the Russian army has taken control of the Soledar region. The Ukrainian army said fighting was still taking place in the Soledar city. Russian missiles hit vital infrastructure in Kyiv and Kharkiv, and air defense sirens sounded across much of Ukraine.

7. India sets the benchmark price of gold imports at US$60.6, and the benchmark price of silver imports at US$770/kg.

MARKET VIEWPOINTS

Craig Erlam, Market Analyst, OANDA

Gold is now at the upper end of a key range
Gold continued its strong start to the year, rising again last week and breaking through $1,900 in the process; gold is now in the key range of $1,880-1,920 in recent years, so gold may encounter a period of time to come To strong resistance, although the momentum of the rebound is still improving. This could be a very positive sign if the rebound momentum lasts long enough and breaks above the upper bound of the key range. In the blink of an eye, $2,000, or even record highs, could be on the way.

President, Phoenix Futures and Options

Bond market a positive for gold
Although from a technical point of view, the rebound momentum of gold seems to be a bit excessive, but the financial market is undergoing fundamental changes, which will support the price of gold; the bond market is currently signaling that terminal interest rates will be lower than the Fed’s expectations, so this will be good gold.

Barchart Senior Analyst Darin Newsom

Be wary of gold’s pullback this week
Since the short-term and medium-term trends are clearly up, I think gold prices will go higher; however, investors who are bullish on gold should also remain flexible, because gold may quickly pull back. After all, the key to gold’s short-term trend will be the US dollar, which is currently It is significantly oversold, and at the same time, 102.17 is an important retracement of the historic rebound of the US index last year. Given that the market often “pops and crashes,” gold could reverse course this week, and it could even drop quickly.

BNP Paribas

Gold May Consolidate Before Next Rally
Gold is currently supported by a weaker U.S. dollar, with the Bank of Japan likely to continue adjusting policy, China reopening, and a sharp drop in energy prices during Europe’s warm winter supporting a rebound in the euro and sterling, all adding to the dollar’s bearish momentum. The focus this week will be on U.S. housing, retail sales, industrial production and Philadelphia Fed manufacturing data, and while gold may see some consolidation before its next rally, the outlook remains positive and we expect gold prices to rise to $1960 in the near term.

close

We don’t spam! Read our privacy policy for more info.