In a related development, the National Development and Reform Commission (NDRC), China’s primary economic architect, divulged plans to institute a ded
In a related development, the National Development and Reform Commission (NDRC), China’s primary economic architect, divulged plans to institute a dedicated unit to rejuvenate its waning private economic sector, thereby amplifying investor optimism and fostering bullish equity market sentiment.
Nonetheless, gold’s downside appears buffered by the anticipation that the Fed’s rate-increase trajectory is nearing its zenith.
The prevalent consensus indicates the US central bank’s propensity to maintain the status quo concerning interest rates in their imminent September policy congregation, a sentiment augmented by the recent equivocal US employment figures. While the National Non-Farm Payroll (NFP) figures surpassed expectations, they were counterbalanced by a downward adjustment of the prior month’s statistics and a surprise uptick in joblessness rates. Furthermore, the annual rate of Average Hourly Earnings witnessed a contraction, reflecting minor stagnation in employment dynamics.
Such factors curtail the Fed’s latitude in persistently hiking rates, subsequently stymieing aggressive USD proponents from initiating fresh positions and inadvertently favoring the USD-priced gold. Therefore, it remains judicious for traders to await a definitive downward trend before concluding the gold’s recuperation from its March 13 low near $1,885 and adopting a pronounced bearish stance on the XAU/USD.
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