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TREX Global:U.S. bond yields regained momentum, and gold prices are at risk of a sharp drop?U.S. jobless claims rise las...
10/02/2023

TREX Global:U.S. bond yields regained momentum, and gold prices are at risk of a sharp drop?

U.S. jobless claims rise last week, but labor market remains tight

The number of Americans filing new claims for jobless benefits rose more than expected last week, but the underlying trend still pointed to a tight labor market.

The job market has shown resilience despite mounting economic headwinds from Fed rate hikes. While strength in the labor market keeps the Fed on the path to tightening monetary policy, it also suggests that the long-expected recession is far from coming.

Barkin: Fed can act 'more cautiously' in raising rates further

Richmond Fed President Thomas Barkin said on Thursday that tightening monetary policy is "clearly" slowing the U.S. economy, allowing the central bank to act "more cautiously" in raising interest rates further.

"I believe our foot is definitely on the brakes," Barkin said in a podcast posted on the Richmond Fed website. "It would be prudent to guide more cautiously" as the Fed examines the impact of monetary policy on the economy while watching to see if inflation continues to slow.

The new forecast will be released after the Fed's March 21-22 policy meeting.

Traders betting on Fed rate hike to 6% this week are targeting too low, research firm MacroHive says

Dominique Dwor-Frecaut, senior market strategist at research firm MacroHive, believes traders betting on the Fed raising interest rates to 6 percent this week are targeting too low.

She said the Fed would have to raise the federal funds rate to about 8% to win the battle and keep inflation under control. She came to this conclusion after analyzing data going back to 1970 with the help of a Taylor rule model.

Her predictions remain outliers, which doesn't surprise her. She originally made the forecast in March 2022, shortly after the Fed began its tightening cycle.

U.S. Treasury yields rise after 30-year bond auction

U.S. Treasury yields rose on Thursday, buoyed by weak demand at an auction of 30-year notes, the last auction of $96 billion of coupon-bearing bonds this week.

Earlier in the session, long-dated yields retreated from one-month highs after last week's jobless claims rose above expectations as investors reassessed the likely path of Fed policy following last week's unexpectedly strong jobs report.

The yield on the 30-year bond at auction was 3.686%, about 3 basis points above where it traded before the auction. The bid-to-cover ratio was 2.25 times, the lowest since December.

Demand for government debt has been mixed this week, with Wednesday's $35 billion auction of 10-year notes strong and Tuesday's $40 billion auction of three-year notes also weak.

Riksbank predicts further rate hikes, says it wants stronger currency to fight inflation

The Riksbank raised its benchmark interest rate by 50 basis points to 3 percent on Thursday and forecast further tightening in the coming months to counter headwinds from inflation and a weak currency.

The Swedish krona rose sharply after the central bank's announcement, the first rate hike under the central bank's new governor, Erik Thedeen. Many in the market were surprised that the central bank would continue to raise interest rates, which they had expected Thursday to be the last of this tightening cycle.

ECB's Nagel: Decisive action must be taken to keep inflation expectations anchored

Bundesbank President and ECB Governing Council Nagel said on Thursday that the ECB must act decisively to prevent inflation expectations from exceeding its 2% target too far, and he reiterated calls for further interest rate hikes.

TREX Global’s view:The U.S. labor market is relatively strong, and Fed officials' speeches are slightly hawkish, which raises market expectations for the Fed's terminal interest rate. U.S. bond yields strengthened, which significantly suppressed gold prices. Moreover, other central banks around the world are still raising interest rates further, the opportunity cost of holding gold is increasing, and the technical bearish signals have also increased, and the downside risks faced by short-term gold prices have increased. Of course, before the US CPI data for January is released next week, there is also some wait-and-see sentiment in the market, and geopolitical tensions may slightly limit the downside of gold prices.

TREX Global:The market turns its attention to the inflation data of the United States in January, and it is necessary to...
09/02/2023

TREX Global:The market turns its attention to the inflation data of the United States in January, and it is necessary to pay attention to the performance of the initial data

Several Fed policymakers support smaller rate hikes, jobs report does not change rate outlook

Several Fed policymakers said on Wednesday that further interest rate hikes were possible as the central bank continued to try to tame inflation, but none suggested that January's strong jobs report would push them back to a more aggressive monetary policy stance.

Raising the target range for the federal funds rate to 5.00% to 5.25% "appears to be a very reasonable view of what we need to do this year to ease the supply-demand imbalance," New York Fed President William Williams said at an event. The Fed may be able to take "small steps" this year compared with the pace of most previous tightening actions, he added.

U.S. wholesale inventory growth in December was the lowest in nearly two-and-a-half years, as high interest rates curb demand and lead to sluggish sales

U.S. wholesale inventories rose by the smallest amount in nearly two-and-a-half years in December, suggesting businesses are holding back on placing new orders for goods as rising interest rates dampen demand and stall sales.

The U.S. Commerce Department said on Wednesday that wholesale inventories confirmed a 0.1% month-on-month increase in December, the smallest gain since July 2020. Economists polled had also forecast no revisions to the data. Wholesale inventories rise 0.9 in November

PIMCO: U.S. recession likely despite data showing resilience

PIMCO, one of the world's largest asset managers, stuck to its previous forecast that the U.S. economy was headed for a recession, despite recent data showing resilience.

Tiffany Wilding, North America economist at PIMCO, said the strong economic data suggested that a recession may be later than previously expected, but still possible.

The downside risk of the dollar still exists, Powell did not significantly change the interest rate expectations

The U.S. dollar index edged higher on Wednesday, little changed on the session overall, as investors stopped selling the greenback a day after Federal Reserve Chairman Jerome Powell made no apparent change to his interest rate outlook despite last week's very strong U.S. jobs report. The outlook for the dollar remains on the downside as the Fed draws to a close in its tightening cycle and markets price in rate cuts by the end of the year, analysts said.

U.S. bond yields fell slightly

U.S. Treasury yields edged back on Wednesday as investors digested comments from Federal Reserve officials following last week's surprisingly strong January jobs report.

"The effect of last week's data is basically to get the market to start pricing in peak interest rate expectations in line with the Fed," said John Madziyire, senior portfolio manager of fixed sectors and head of Treasurys and inflation at Vanguard.

“We are now at a position where, at least relatively speaking, there is more certainty in terms of the Fed’s policy path and less volatility in terms of expectations about what the Fed will do,” he added.

The yield on the 10-year Treasury note rose and retreated on Wednesday, earlier hitting 3.692%, the highest since Jan. 6. It closed at 3.636%, a drop of about 1.1%. In Asia on Thursday, U.S. bond yields continued Wednesday’s decline and are currently trading at around 3.612%, a drop of about 0.66%.

TREX Global’s view:Overall, the tense geopolitical situation and lingering concerns about the global economic recession still provide safe-haven support for gold prices, while the market has basically digested the impact of last week's beautiful non-farm payrolls, and most investors still believe that the Fed has entered At the end of the interest rate hike cycle, this means that gold prices are bullish in the medium and long term. In the short term, pay attention to the resistance at the 1900 mark above. If this position can be regained, it will increase the short-term bullish signal. Below, focus on the support near the 1860 mark. If it fails to hold this position, it will increase the short-term downside risk of gold prices.

TREX Global’s view:Although Powell said that he will further raise interest rates, the overall speech content is not par...
08/02/2023

TREX Global’s view:Although Powell said that he will further raise interest rates, the overall speech content is not particularly hawkish, and the dollar’s rise has been hindered. In the past few trading days, the dollar’s short-term gains have been relatively large, and the dollar also has some adjustment needs. Gold prices stick to the 1860 mark There is a need for a further rebound in the short term in the market outlook, focusing on resistance at the 1886.50 and 1900 mark. However, it is expected that more Fed officials may comment on the non-agricultural data. The market may further increase the Fed’s terminal interest rate expectations. Space, if the gold price cannot regain the 1900 mark, the market outlook will still tend to fluctuate downward.

TREX Global:Gold rebounds modestly, eyes on Powell speech, Biden's State of the Union addressFed's Bostic: Rates may nee...
07/02/2023

TREX Global:Gold rebounds modestly, eyes on Powell speech, Biden's State of the Union address

Fed's Bostic: Rates may need to be raised higher than previously expected

The central bank may need to raise borrowing costs more than previously expected given the unexpectedly strong job growth in January, Atlanta Fed President Bostic said on Monday.

Unless the report turns out to be anomalous, "it could mean we have to do more," Bostick said. "And I expect that to translate into higher interest rates than I'm currently forecasting."

San Francisco Fed report: U.S. financial conditions may tighten further

U.S. stocks could fall further and Treasury yields could rise as the central bank continues its current round of rate hikes in the coming months, according to an analysis published Monday by the San Francisco Fed.

Financial conditions tightened markedly even before the central bank started raising interest rates last March to combat inflation at 40-year highs, as investors anticipated the Fed's actions.

Treasury Secretary Yellen: No U.S. Recession When Unemployment Is At 53-Year Low

U.S. Treasury Secretary Janet Yellen said on Monday that she expects the U.S. economy to be on a path to avoid recession, with inflation falling sharply and the economy remaining strong, given the strength of the U.S. labor market.

Yellen said on ABC's "Good Morning America," "When you have 500,000 new jobs and the lowest unemployment rate in over 50 years, you don't have a recession and what I see is A path where inflation falls sharply while the economy remains strong."

Inflation is still too high, Yellen said, but it has been falling for the past six months and will fall significantly in the future given the measures taken by the Biden administration, including moves to lower the cost of gasoline and prescription drugs.

Goldman Sachs Cuts U.S. Recession Chance to 25% in Next 12 Months on Strong Labor Market

Goldman Sachs said on Monday it now sees a 25% chance of the U.S. entering a recession within the next 12 months, down from its previous forecast of 35%.

"Continued strength in the labor market and early signs of improvement in business surveys suggest that risks of a near-term downturn have significantly diminished," the bank said in a research note.

Economists polled by Reuters in December put the chance of a recession in 2023 at 60%.

Dollar extends rally on strong data on Monday

On Monday, the U.S. dollar index continued last week’s gains, reaching as high as 103.76, a new high in nearly four weeks, and closing at 103.64, an increase of about 0.62%. Possibility of rate hikes to combat inflation.

U.S. Treasury yields hit a four-week high on Monday, with the Fed expected to raise interest rates above 5%

The yield on the 10-year U.S. Treasury note hit a four-week high on Monday after a blowout jobs number boosted expectations that the Federal Reserve's rate hikes won't end with a hard landing for the economy and that there could be more than one more rate hike from the Fed. Last Friday's ISM non-manufacturing PMI data was also very strong.

"It's been a big rally in the (ISM) that takes away some of the concerns about December weakness," said Jim Vogel, senior rates strategist at FHN Financial in New York. Meanwhile, investors are eyeing the jobs report, expecting a "big improvement in January," has "translated into the inflation data that we will see very soon".

Chief Economist Peel: BoE willing to do more on inflation if necessary

The Bank of England's chief economist Peel said on Monday that the Bank of England is willing to do more to bring inflation back to target. The bank had said last week that interest rates were near their peak.

"I do have a high level of confidence (in getting inflation on target) because we know what we're going to do. We've done a lot to get there and we're prepared to do more if necessary to make sure we can Continuing to make that happen," Peele said in an online question-and-answer session, "and I don't think anyone has changed their minds, or lost confidence, or anything like that."

UK headline inflation fell to 10.5% in December after hitting a 41-year high of 11.1% in October.

The Bank of England raised interest rates for the 10th time in a row last week, but dropped language that it was prepared to raise borrowing costs "robustly" if necessary.

TREX Global’s view:There is callback pressure on the U.S. dollar in the short term, which is expected to provide some opportunities for gold prices to rebound and adjust. However, current market expectations have changed. The market has higher expectations for the Fed's terminal interest rate and may maintain high interest rates for a longer period of time. The market's expectations of a U.S. recession have also cooled, which will limit the room for a correction in the U.S. dollar and put further downward pressure on the gold price in the market outlook. Central banks in developed countries such as the European Central Bank and the Bank of England are also facing further pressure to raise interest rates, which will increase holdings. There is an opportunity cost of gold, which is not good for gold prices.

TREX Global:The non-agricultural data suppressed the expectation that the Federal Reserve may cut interest rates within ...
06/02/2023

TREX Global:The non-agricultural data suppressed the expectation that the Federal Reserve may cut interest rates within the year, which significantly suppressed the price of gold

U.S. job growth picks up pace in January, unemployment rate falls to lowest since 1969

U.S. job growth accelerated sharply in January and the unemployment rate fell to 3.4 percent, the lowest in more than 53-1/2 years, suggesting a stubbornly tight labor market that could cause headaches for Fed policymakers struggling to combat inflation.

The jobs report also showed that the number of jobs created over the past year was much higher than previously estimated, suggesting the economy is far from reaching recession. While wage inflation cooled further in January, average hourly earnings rose faster than previously estimated in 2022.

Hiring was strong despite layoffs in the technology industry and rate-sensitive sectors such as housing and financials, throwing cold water on expectations that the Fed is close to pausing its monetary policy tightening cycle.

U.S. services PMI rebounds in January, signs of life as economy nears recession

U.S. service sector activity rebounded strongly in January as new orders picked up and the prices companies pay for raw materials continued to rise modestly, a hopeful sign at a time when a recession is likely this year.

The Institute for Supply Management (ISM) data on Friday showed that the non-manufacturing purchasing managers index (PMI) rose to 55.2 in January. The index fell to 49.2 in December, the first time since May 2020 that it fell below the 50 mark that separates expansion from contraction. Economists had predicted that the non-manufacturing PMI rose to 50.4 in January.

The services sector, which accounts for more than two-thirds of U.S. economic activity, is benefiting from a shift in consumer spending from goods to services. The Fed's fastest rate-hiking cycle in the 1980s has sapped demand for goods, which consumers typically use credit cards to buy.

Dollar jumps after unexpectedly strong non-farm payrolls

At the beginning of the Asian market on Monday (February 6), the U.S. dollar index rose slightly, hitting a new high of more than three weeks to 103.24, continuing last Friday's gains. The dollar surged 1.23% on Friday after data showed U.S. employers added significantly more jobs in January than economists expected, potentially giving the Federal Reserve more leeway to keep raising interest rates.

U.S. Treasury yields jump as services sector activity rebounds, job surge weighs on Fed

U.S. Treasury yields jumped on Friday after data showed U.S. job growth accelerated sharply in January and services sector activity rebounded, further complicating the Fed's attempt to slow the economy to lower inflation.

ECB policymaker says another rate hike in May

Two ECB policymakers said on Friday that another rate hike in May was likely after the ECB signaled a hike in March, with one arguing that peak or "terminal" rates were at least beginning to be seen.

The European Central Bank raised interest rates by 50 basis points to 2.5 percent on Thursday and pledged to take similar action in March, but left room for follow-up moves, casting doubt on investors about its resolve to keep raising rates to curb inflation.

TREX Global’s view:Although the gold price has rebounded and adjusted after a short-term sharp drop, geopolitical tensions have also attracted bargain hunters to support the gold price, but last week the Federal Reserve, the European Central Bank, and the Bank of England all continued to raise interest rates, making it an opportunity to hold gold. With the increase in costs, the three major central banks have room to raise interest rates further in the future, which has depressed the morale of gold bulls, especially in the outlook for the US non-agricultural data and ISM non-manufacturing data. The market expects more interest rate hikes by the Fed. Expectations of interest rate cuts this year have cooled, the dollar has soared, and U.S. bond yields have risen, causing gold prices to fall below the support of the 1900 mark. Technically, the short-term peak signal of gold prices has further strengthened. If the 1900 mark cannot be recovered quickly, the gold price is expected to further fluctuate and adjust downward in the market outlook .

TREX Global:Powell's "dovish" raises interest rates, and gold prices point to 2000 again?The Fed raised interest rates b...
02/02/2023

TREX Global:Powell's "dovish" raises interest rates, and gold prices point to 2000 again?

The Fed raised interest rates by 25 basis points as scheduled, but Powell's words were slightly dovish

The Fed raised its benchmark interest rate by 25 basis points on Wednesday, but still pledged to "continue to raise" borrowing costs as part of its unfinished battle against inflation.

"Inflation has eased but remains elevated," the Fed said in a statement, marking a clear acknowledgment of progress in efforts to curb inflation, which has pulled back from 40-year highs hit last year.

Factors such as Russia's war in Ukraine continued to add to "global uncertainty," the Fed said. But policymakers dropped language from previous statements that cited the Russia-Ukraine war and the coronavirus pandemic as immediate causes of the price rise, and made no mention of the global health crisis that began in March 2020 for the first time since March 2020 .

Still, the Fed said the U.S. economy is growing "moderately" with "strong" job growth and that policymakers remain "highly focused" on inflation risks.

U.S. interest rate futures keep bets on terminal rates below 5% after Fed decision

Futures markets tied to the Fed's policy rate are maintaining their bets that the federal funds rate will peak at just below 5% this June, according to Refinitiv FedWatch data on Wednesday, and still expect the Fed to cut rates by the end of 2023.

The US interest rate futures market has priced in a terminal rate of 4.893%. Fed policymakers, on the other hand, are expected to raise the target range for the benchmark policy rate to 5% to 5.25% and keep it there at least through the end of the year.

Meanwhile, the futures market is pricing in a rate cut this year, with the December 2023 federal funds rate at 4.51%.

U.S. manufacturing activity falls further in January

Since March last year, the Fed has raised the policy rate target range by 450 basis points, from near zero to 4.5%-4.75%, the fastest rate hike cycle since the 1980s. Aggressive monetary policy tightening has economists predicting a recession by the second half of the year. The housing market is already in decline, and the manufacturing downturn is deepening.

A report on Wednesday from the Institute for Supply Management (ISM) showed that the U.S. manufacturing purchasing managers' index (PMI) fell to 47.4 in January from 48.4 in December. It contracted for the third straight month, hitting its lowest level since May 2020 and below the 48.7 mark seen as consistent with a broader recession.

U.S. ADP data underperforms

The report showed that private payrolls increased by 106,000 jobs in January, well below economists' expectations for an increase of 178,000 jobs and following a gain of 253,000 jobs in December. However, the ADP National Employment Report attributed the weaker-than-expected private job growth to severe weather in mid-January, including flooding in California

Leisure/hospitality jobs rose by 95,000 in December, which economists said was at odds with bad weather hampering hiring.

Dollar tumbles to nine-month low

The U.S. dollar fell 0.93% on Wednesday, and continued its decline during the Asian session on Thursday, hitting a new low of 100.80 since April 25. Federal Reserve Chairman Powell's remarks were slightly dovish, weakening expectations for tightening policies.

U.S. bond yields fell sharply, the market believes that the Fed has turned dovish

U.S. Treasury yields mostly fell on Wednesday after the Federal Reserve raised interest rates by 25 basis points, as expected, and pledged to "continue raising" borrowing costs to slow the pace of inflation. But the market insisted that the Fed turned dovish.

The Fed raised its target range for its benchmark overnight lending rate to 4.5% to 4.75%, as expected. But the Fed's statement ran counter to investor expectations that the central bank was ready to signal the end of the tightening cycle. The market buys that view because higher interest rates are slowing the U.S. economy.

U.S. job vacancies unexpectedly rise to five-month high in December

U.S. job vacancies unexpectedly rose in December, suggesting strong demand for labor despite rising interest rates and growing recession fears could keep the Fed on the path of policy tightening.

The Labor Department's monthly Job Openings and Labor Turnover Survey (JOLTS) report released Wednesday showed that there were 1.9 job vacancies for every unemployed person in December. Signs of persistent labor tensions haven't changed the Fed's slow pace of rate hikes.

TREX Global’s view:The unexpected dovishness of the chairman of the Federal Reserve, the poor ADP and ISM manufacturing PMI data have significantly dragged down the US dollar and US bond yields, which provided a strong upward momentum for gold prices, and there is still a certain chance for gold prices to rise in the short term. However, before the non-agricultural data, there is still some wait-and-see sentiment in the market. The Bank of England and the European Central Bank are likely to raise interest rates by 50 basis points each, which may also make the bulls scruples. Short-term gold prices are still likely to fluctuate at a high level. In view of the top signal on the technical side, we also need to beware of the possibility of a short counterattack.

TREX Global:The Federal Reserve’s resolution is coming, beware of double kills by longs and shorts!U.S. labor cost growt...
01/02/2023

TREX Global:The Federal Reserve’s resolution is coming, beware of double kills by longs and shorts!

U.S. labor cost growth slows in fourth quarter, but labor market remains tight

U.S. labor costs grew at their slowest pace in a year in the fourth quarter as wage growth slowed, giving the Fed a boost in its inflationary battle.

There was more encouraging news on inflation, with data on Tuesday showing home price gains slowed sharply in November. The reports came as Fed officials began a two-day policy meeting. The Fed is expected to further slow the pace of rate hikes on Wednesday, raising the policy rate by 25 basis points.

While the Fed has slowed its pace of rate hikes, it is unlikely to stop tightening monetary policy.

The Fed's "Beige Book" report this month described the labor market as "persistently tight," noting that "wage pressures remained elevated across the Fed districts" in early January, although five districts' "Reserve banks reported that those pressures had eased." ".

While the annual increase in average hourly earnings has slowed in the Labor Department's monthly jobs report, wages remain high. The Atlanta Fed's wage tracker also fell, but remained elevated in the fourth quarter.

The tightness of the labor market can also be fully reflected in another report from the World Enterprise Research Institute. The so-called employment difficulty index of its consumer survey rose from 34.5 in December to 36.9 in January. The data comes from respondents' perceptions of whether jobs are plentiful or hard to come by.

This measure correlates with the Labor Department's unemployment rate, and a rise indicates tight labor market conditions. The government will publish job vacancies data for December on Wednesday. There were 10.5 million job vacancies on the last working day of November.

The Fed's current cycle of rate hikes, the fastest since the 1980s, is holding back house price gains.

The S&P CoreLogic Case-Shiller National Home Price Index, which covers all nine U.S. census tracts, rose 7.7 percent in November from a year earlier, down from a 9.2 percent gain in October.

Home prices, as measured by the Federal Housing Finance Agency (FHFA), rose 8.2 percent in the 12 months through November after climbing 9.8 percent in October. However, a persistent shortage of homes for sale may prevent prices from falling sharply.

Labor cost data weighs on dollar

The U.S. dollar index rose and fell on Tuesday, hitting a nearly two-week high to 102.61 earlier, but data showed that labor costs in the U.S. rose less than expected in the fourth quarter, and the market expects the Fed to announce a rate hike of only 25 basis points on Wednesday. After the announcement, it turned from up to down, closing at around 102.10, a drop of about 0.12%.

U.S. Treasury yields fall as data shows U.S. wages, home price growth slowing

The 10-year U.S. Treasury yield retreated from a two-week high on Tuesday after economic data showed slower U.S. wage growth and a cooling housing market, with shorter-dated yields on track for their biggest monthly drop in nearly three years.

Top hawkish official hints at Fed rate hike pause in May

If there is more evidence that U.S. inflation is cooling down, media analysts say the Fed is expected to consider pausing interest rate hikes after its March meeting. In other words, the Fed may not raise interest rates at its May meeting.

The pause in raising interest rates in May was based on a timetable hint given by the Fed's senior hawkish official and voting governor Waller. Waller was an early advocate of the Fed's strategy of frontloading rate hikes.

Eurozone Q4 GDP surprises, avoids recession

The euro zone narrowly managed to grow in the final three months of 2022, avoiding recession, despite the impact of high energy costs, weakening confidence and rising interest rates on the bloc's economy, Eurostat data showed on Tuesday.

Gross domestic product (GDP) in the euro zone rose 0.1 percent in the fourth quarter, beating expectations for a 0.1 percent decline in a Reuters poll. Compared with the same period last year, it increased by 1.9%, higher than the expected increase of 1.8%.

Among the top euro zone countries, Germany and Italy recorded negative growth in the fourth quarter, but France and Spain expanded, Eurostat added, based on preliminary estimates that are subject to revision.

IMF raises 2023 economic growth forecast

The International Monetary Fund (IMF) on Tuesday slightly raised its global growth forecast for 2023, citing "amazing resilience" in demand in the United States and Europe, easing energy costs and the reopening of China's economy after it abandoned strict coronavirus restrictions .

The IMF's latest "World Economic Outlook" predicts that the global economic growth rate in 2023 will still drop from 3.4% in 2022 to 2.9%, but it has improved from the 2.7% growth predicted in October last year; prone to recession.
Reuters poll: The average price of gold is expected to rise to $1,852.50 an ounce in 2023

A Reuters poll on Tuesday showed analysts and traders had sharply raised their forecasts for gold prices, but expected higher interest rates to keep prices in check.

Spot gold fell from more than $2,000 an ounce to a low of $1,613.60 in 2022 as rising interest rates pushed up bond yields and the dollar, making dollar-denominated non-yielding gold less attractive.

The survey of 38 analysts and traders put gold at an average price of $1,825 an ounce in the first quarter of this year, $1,840 in the second quarter, $1,852.50 for the year and $1,890 in 2024.

TREX Global’s view:Concerns about the global economic recession have cooled down, which will limit the upside of gold prices in the medium and long term, but in the short term, the market expects that the US labor market may encounter some problems, and the employment data for January is not optimistic , The expectations for the U.S. PMI data in January are poor, and the Fed's interest rate decision is also difficult to be very hawkish, which will provide opportunities for further rises in gold prices.

What needs to be reminded is that the Fed’s interest rate resolution and Fed Chairman Powell’s speech at the press conference are unlikely to be overwhelmingly hawkish or overwhelmingly dovish. It is expected that the price of gold will also face wide fluctuations in the intraday session and see-saw between long and short Investors need to be vigilant against the possibility.

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