empty
 
 

Forex Analysis & Reviews: The Fed is willing to pay with a recession to control inflation: will gold rise?
time 09.08.2022 03:09 PM
time Relevance up to, 10.08.2022 11:29 AM

This image is no longer relevant

The strong jobs report proved that the US economy is still growing despite two negative quarterly GDP releases. And that means that gold price rally could be in jeopardy.

Gold lost 1% on Friday in response to the fact that the US economy added 528,000 jobs in July. The July report doubled economists' expectations for an additional 250,000 jobs. Gold rebounded on Monday, with December Comex gold futures rising to $1,793.00, up 0.70% on the day.

This image is no longer relevant

Friday's sell-off was triggered by a change in opinion that markets were prematurely pricing the Fed's turnaround due to an aggressive tightening cycle.

This week, it is important to pay attention to the US July inflation report, in which economists predict that the annual inflation rate will be 8.7% after rising to 9.1% in June.

Logically, inflation will continue to be high. The indicator to watch is core inflation, excluding the food and energy sectors, the core consumer price index, which will be published Wednesday.

Economist consensus suggests that annual core inflation will accelerate to 6.1% from 5.9% in June.

Last week, hawkish Fed speakers opposed the idea that the US central bank would balk at raising rates.

Chicago Fed President Charles Evans said the US Central Bank is likely to keep raising rates excessively until it sees a decline in inflation.

San Francisco Fed President Mary Daly said inflation is still a problem. And that the Fed has a long way to go to reach its price stability goal.

According to St. Louis Federal Reserve President James Bullard, there are several paths to the transition of monetary policy cuts.

And Richmond Fed President Thomas Barkin noted that the Fed is ready to pay a hefty price to control inflation called a recession.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2023
EURUSD
Euro vs US Dollar
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Start trade
Start trade

InstaForex分析评论将让您充分了解市场趋势! 作为InstaForex的客户,您将获得大量的免费服务以实现有效的交易。

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $10000 more!
    In January we raffle $10000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

The Fed, the ECB and the Bank of England are getting ready to bring the markets out of their slumber. Overview of USD, EUR, GBP

Speculative sentiment on the U.S. dollar continues to deteriorate. As it follows from the CFTC report, the total short position rose by 671 million to -7.283 billion, with the euro

Kuvat Raharjo 22:50 2023-01-30 UTC+2

NZD/USD: ahead of 3 central bank meetings

New Zealand's Bureau of Statistics reported last week that the Consumer Price Index rose 1.4% in Q4, beating expectations of a 1.3% increase. On an annual basis, CPI remained

Jurij Tolin 22:50 2023-01-30 UTC+2

EURUSD on a roller coaster ahead of Fed and ECB meetings

The EURUSD pair staged a mini-performance on Forex ahead of the most important events of the week: Fed and ECB meetings. The contraction of the German economy in the fourth

Marek Petkovich 15:32 2023-01-30 UTC+2

Markets underestimate grave risks

Leading analysts, including BlackRock Inc. and Amundi SA hedge funds, warn that markets are overoptimistic about future risks. The ongoing rally in stock markets could overshadow the investment outlook. More

Andrey Shevchenko 12:08 2023-01-30 UTC+2

The U.S. dollar will be the key to gold this week

Last week, Bank of America released a very optimistic report on gold, with analysts saying the precious metal will be the main asset for the next three years. Bank

Irina Yanina 12:07 2023-01-30 UTC+2

The Bank of England has no choice

After the Bank of England meeting this week, the British pound is still optimistic about future growth since a sharp rise in salaries in the country is probably going

Jakub Novak 12:05 2023-01-30 UTC+2

The ECB's forecasts and actions will determine how the euro will move.

And even though the euro is always redeemed following a solid downward correction, many market participants are unsure of the ECB's plans after its upcoming 2023 interest rate decision, which

Jakub Novak 11:56 2023-01-30 UTC+2

GBP/USD. Overview for January 30. The moment of truth for the pound

In the upcoming week, the GBP/USD currency pair may also move fairly significantly. However, it is hard to predict where the pair will be by the end of the week

Paolo Greco 11:44 2023-01-30 UTC+2

EUR/USD. Overview for January 30. What if core inflation continues to rise in the European Union?

This week, the EUR/USD currency pair could swing quite a bit or perhaps remain still. Let's take a dispassionate look at the calendar's numbers. The most significant meetings

Paolo Greco 11:33 2023-01-30 UTC+2

Will the Fed continue its aggressive increase of interest rates?

The key takeaway from Friday's US data was that the Fed's favored measure of inflation cooled again, having decreased by 0.3% in December. The index was up 4.7% year-on-year

Irina Yanina 10:15 2023-01-30 UTC+2
现在无法通话?
提出您的问题,用 在线帮助.