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Market News International gold prices remain stable and wait for the non-agricultural report to be released; Powell's dovish stance faces test
International gold prices remain stable and wait for the non-agricultural report to be released; Powell's dovish stance faces test
On September 1, international gold prices held steady as investors were waiting for the important U.S. non-agricultural employment report to find clues to determine when the Fed might begin to reduce the stimulus measures introduced during the epidemic. The strong recovery of the labor market is an important prerequisite for the Fed's decision to reduce stimulus. The market predicts that the US unemployment rate in August fell by 0.2 percentage points to 5.2%. Fed Chairman Powell previously said that this year may begin to reduce the scale of bond purchases, but will remain cautious when deciding when to raise interest rates. His remarks were interpreted as doves by the market.
2021-09-01
9321
On Wednesday (September 1), international gold prices held steady as investors were waiting for the important US non-agricultural employment report to find clues to determine when the Fed might begin to reduce the stimulus measures introduced during the epidemic.
At 15:33 GMT+8, spot gold fell 0.06% to US$1812.65 per ounce; the main COMEX gold contract fell 0.18% to US$1814.8 per ounce; the US dollar index rose 0.09% to 92.743.
Jeffrey Halley, senior market analyst for OANDA Asia Pacific, said: "If the number of new jobs exceeds 1 million, it will regain the focus of shrinking stimulus, which is not good for gold. If it is around 700,000 or lower, it will ease. These concerns are supportive of gold.” He added that gold lacks the momentum to clearly leave the 100-day and 200-day moving average areas.
The strong recovery of the labor market is an important prerequisite for the Fed's decision to reduce stimulus. The market predicts that non-agricultural jobs in the United States will increase by 748,000 in August, and the unemployment rate will fall by 0.2 percentage points to 5.2%.
Last week, Fed Chairman Powell admitted in his speech at the annual meeting of global central banks that this year may begin to reduce the scale of bond purchases, but he will remain cautious in deciding when to raise interest rates. His remarks were interpreted as doves by the market.
DailyFX currency strategist Ilya Spivak said: "(After the annual meeting of global central banks) the price of gold has failed to continue to strengthen, which shows that the market recognizes that the current policy direction is to start reducing stimulus measures."
European Central Bank (ECB) policymakers will meet next week, after the euro zone’s August inflation rate was a full percentage point higher than the central bank’s 2% target level. Some officials were uneasy about the scale of the epidemic’s debt purchase plan. Although the rationale for high inflation as a temporary factor is equally applicable, some monetary policy hawks have also made their own voices.
The minutes of the ECB’s last meeting showed that officials were divided on the extent and scope of future policy guidelines, and media reports on Tuesday said that the ECB’s governing board and the governor of the Austrian central bank Holzman advocated reducing pandemic emergency assets before the end of the year. Acquisition plan (PEPP).
Gilles Moec, chief analyst at AXA Investment Management, said this week that the Fed seems keen to allow the exact timing of its cuts to change, and the European Central Bank is also not eager to "clarify" the ambiguities of its revised guidance.
The world's largest gold-backed exchange-traded fund (ETF)-SPDR Gold Trust's holdings fell by 0.2% on Tuesday to 1,000.26 tons, the lowest level since April 2020.
Faced with severe criticism of the chaotic situation of the U.S. troop withdrawal from Afghanistan, U.S. President Biden said on Tuesday that he would withdraw troops from Afghanistan in order to end the United States’ longest-lasting war and decades of futile efforts to transform other countries through military power. Is the best choice.
At 15:33 GMT+8, spot gold fell 0.06% to US$1812.65 per ounce; the main COMEX gold contract fell 0.18% to US$1814.8 per ounce; the US dollar index rose 0.09% to 92.743.
Jeffrey Halley, senior market analyst for OANDA Asia Pacific, said: "If the number of new jobs exceeds 1 million, it will regain the focus of shrinking stimulus, which is not good for gold. If it is around 700,000 or lower, it will ease. These concerns are supportive of gold.” He added that gold lacks the momentum to clearly leave the 100-day and 200-day moving average areas.
The strong recovery of the labor market is an important prerequisite for the Fed's decision to reduce stimulus. The market predicts that non-agricultural jobs in the United States will increase by 748,000 in August, and the unemployment rate will fall by 0.2 percentage points to 5.2%.
Last week, Fed Chairman Powell admitted in his speech at the annual meeting of global central banks that this year may begin to reduce the scale of bond purchases, but he will remain cautious in deciding when to raise interest rates. His remarks were interpreted as doves by the market.
DailyFX currency strategist Ilya Spivak said: "(After the annual meeting of global central banks) the price of gold has failed to continue to strengthen, which shows that the market recognizes that the current policy direction is to start reducing stimulus measures."
European Central Bank (ECB) policymakers will meet next week, after the euro zone’s August inflation rate was a full percentage point higher than the central bank’s 2% target level. Some officials were uneasy about the scale of the epidemic’s debt purchase plan. Although the rationale for high inflation as a temporary factor is equally applicable, some monetary policy hawks have also made their own voices.
The minutes of the ECB’s last meeting showed that officials were divided on the extent and scope of future policy guidelines, and media reports on Tuesday said that the ECB’s governing board and the governor of the Austrian central bank Holzman advocated reducing pandemic emergency assets before the end of the year. Acquisition plan (PEPP).
Gilles Moec, chief analyst at AXA Investment Management, said this week that the Fed seems keen to allow the exact timing of its cuts to change, and the European Central Bank is also not eager to "clarify" the ambiguities of its revised guidance.
The world's largest gold-backed exchange-traded fund (ETF)-SPDR Gold Trust's holdings fell by 0.2% on Tuesday to 1,000.26 tons, the lowest level since April 2020.
Faced with severe criticism of the chaotic situation of the U.S. troop withdrawal from Afghanistan, U.S. President Biden said on Tuesday that he would withdraw troops from Afghanistan in order to end the United States’ longest-lasting war and decades of futile efforts to transform other countries through military power. Is the best choice.
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