English
Market News International gold prices are under pressure, and the rebound of the U.S. index has stopped; the Fed is on the verge of a "big test"
International gold prices are under pressure, and the rebound of the U.S. index has stopped; the Fed is on the verge of a "big test"
On September 14, international gold prices were under pressure, but the rebound of the US dollar index also stopped. Investors are waiting for key U.S. inflation data, which may provide clues to the Fed's decision to scale back economic stimulus measures during the epidemic. If the CPI remains high in August, the Fed may be in trouble, as the pressure to normalize stimulus measures will increase.
2021-09-14
7246
On Tuesday (September 14), international gold prices were under pressure, but the rebound of the US dollar index also stopped. Investors are waiting for key U.S. inflation data, which may provide clues to the Fed's decision to scale back economic stimulus measures during the epidemic.
GMT+8 14:42, spot gold fell 0.03% to 1,793.18 US dollars per ounce; the main COMEX gold contract fell 0.01% to 1794.2 US dollars per ounce; the dollar index fell 0.03% to 92.588.
DailyFX currency strategist Ilya Spivak said: "If inflation accelerates moderately, it will strengthen the Fed's idea that it is more likely to officially announce that it will reduce stimulus. Gold's response will be negative because the prospect of reducing stimulus measures will increase yields."
US consumer price data will be released at 20:30 GMT+8 on Tuesday. Analysts predict that the core CPI in August-excluding the volatile energy and food prices-is expected to remain unchanged from the previous value of 0.3% month-on-month, and is expected to fall by 0.1 percentage point year-on-year to 4.2%.
Christopher Vecchio, a senior analyst at DailyFX.com, a foreign exchange brokerage firm’s research department, said: “With weak economic data, if the consumer price index (CPI) stays high in August, the Federal Reserve may be in trouble due to stimulus measures. The pressure for normalization will increase."
Liz Young, head of investment strategy at SoFi, said: "I don't think the inflation rate will fall below 2% before the epidemic. Even if some of these temporary factors weaken, we will still maintain a higher inflation rate than before."
Avtar Sandu, senior commodity manager at Phillip Futures, said in a report: "If inflation data becomes high again, it may be used as a basis to challenge some Fed policymakers' views that inflation is temporary."
The data is released before the Fed’s key policy meeting on September 21-22. The market will pay close attention to when the Fed will announce when it will begin to cancel its debt purchase plan during the epidemic.
The world's largest gold exchange-traded fund SPDR Gold Trust's gold holdings rose from 998.17 tons last Friday (September 10) to 1,000.21 tons on Monday (September 13), an increase of 0.2%.
The U.S. Treasury Department announced on Monday that the government’s August budget deficit was $171 billion, a 15% decrease from the $200 billion deficit a year ago. The tax revenue growth driven by the recovery exceeded the expenditures of the new crown pandemic relief program.
The US Biden government’s new regulations require people who work in many private places to be vaccinated, but the Occupational Safety and Health Administration (OSHA) of the Department of Labor, which is responsible for formulating detailed regulations and implementing the new regulations, is seriously understaffed, and its emergency rule-making mechanism in the past The record is mixed.
GMT+8 14:42, spot gold fell 0.03% to 1,793.18 US dollars per ounce; the main COMEX gold contract fell 0.01% to 1794.2 US dollars per ounce; the dollar index fell 0.03% to 92.588.
DailyFX currency strategist Ilya Spivak said: "If inflation accelerates moderately, it will strengthen the Fed's idea that it is more likely to officially announce that it will reduce stimulus. Gold's response will be negative because the prospect of reducing stimulus measures will increase yields."
US consumer price data will be released at 20:30 GMT+8 on Tuesday. Analysts predict that the core CPI in August-excluding the volatile energy and food prices-is expected to remain unchanged from the previous value of 0.3% month-on-month, and is expected to fall by 0.1 percentage point year-on-year to 4.2%.
Christopher Vecchio, a senior analyst at DailyFX.com, a foreign exchange brokerage firm’s research department, said: “With weak economic data, if the consumer price index (CPI) stays high in August, the Federal Reserve may be in trouble due to stimulus measures. The pressure for normalization will increase."
Liz Young, head of investment strategy at SoFi, said: "I don't think the inflation rate will fall below 2% before the epidemic. Even if some of these temporary factors weaken, we will still maintain a higher inflation rate than before."
Avtar Sandu, senior commodity manager at Phillip Futures, said in a report: "If inflation data becomes high again, it may be used as a basis to challenge some Fed policymakers' views that inflation is temporary."
The data is released before the Fed’s key policy meeting on September 21-22. The market will pay close attention to when the Fed will announce when it will begin to cancel its debt purchase plan during the epidemic.
The world's largest gold exchange-traded fund SPDR Gold Trust's gold holdings rose from 998.17 tons last Friday (September 10) to 1,000.21 tons on Monday (September 13), an increase of 0.2%.
The U.S. Treasury Department announced on Monday that the government’s August budget deficit was $171 billion, a 15% decrease from the $200 billion deficit a year ago. The tax revenue growth driven by the recovery exceeded the expenditures of the new crown pandemic relief program.
The US Biden government’s new regulations require people who work in many private places to be vaccinated, but the Occupational Safety and Health Administration (OSHA) of the Department of Labor, which is responsible for formulating detailed regulations and implementing the new regulations, is seriously understaffed, and its emergency rule-making mechanism in the past The record is mixed.
Bonus rebate to help investors grow in the trading world!
Or try Free Demo Trading
