What lies ahead for gold?
As you must already know, the direction of Gold is mainly dependent on the Price action of DXY (US Dollar index). So first, we take a look at the US Dollar index.
G20: what did the leaders decide?
2022-11-30 • Updated
The G20 summit took place in Bali, Indonesia, on November 2022. Industrialized and developing countries of the G20 account for 80% of global economic activity and two-thirds of the world's population. The leaders of the 17 met in Indonesia to discuss all the hot topics of the world.
The summit's official themes were financial stability, health care, sustainable energy, and digital transformation. However, tensions over Russia's invasion of Ukraine took center stage and complicated host Indonesia's efforts to reach a consensus on these topics.
The condemnation of the Russian-Ukrainian conflict
Initially, the summit was supposed to be devoted to finding ways to restore the global economy after the Covid-19 pandemic. However, Russia's aggression against Ukraine changed priorities.
Many G20 members see the war in Ukraine as a factor holding back global economic growth, increasing inflation, disrupting supply chains, enhancing energy and food security, and raising risks to financial stability. Besides, the leaders of the G20 countries discussed the threat of using nuclear weapons due to the Russian invasion. The final communiqué said: "The use or threat of use of nuclear weapons is unacceptable."
However, Saudi Arabia, India, Brazil, and China refrained from condemning Russia. Furthermore, Indonesian President Joko Widodo called on Western leaders to soften the rhetoric against the Russian Federation at the G20 summit.
Biden and Xi’s meeting highlights
After a nearly three-year absence from the world stage, Chinese leader Xi Jinping embarked on face-to-face meetings with Western leaders in Bali to restore China's global influence. The meeting with Joe Biden was crucial.
China's relations with the US and its allies have deteriorated to varying degrees in recent years due to rising geopolitical tensions, disputes over trade, the origins of the Covid-19 pandemic, and Beijing's growing partnership with Moscow despite Russia's war on Ukraine.
After a three-hour meeting on Monday with US President Joe Biden, Xi held talks with the leaders of four America’s allies - Australia, France, the Netherlands, and South Korea.
Chinese President Xi Jinping and his wife Peng Liyuan at the Welcoming Dinner during G20 in Bali, 15 November 2022 (c) Willy Kurniawan/AP
Macron wants more power
Many believe that French President Emmanuel Macron used the G20 summit to renew France's strategic ambitions in the Asia-Pacific region. He met with regional heavyweights, including Chinese President Xi Jinping and Indian Prime Minister Narendra Modi, as part of the summit.
Above all, he hopes for "recognition" of France's ambitions and influence at the Asia-Pacific Economic Cooperation summit Thursday and Friday in Bangkok, where France will be the first European country invited.
Emmanuel Macron is making this vast territory, stretching from East Africa to Western America's coast, a strategic priority, where France has a lot of land and maritime areas. This enormous maritime space means France is interested in environmental and fisheries issues and the fight against ocean-related human trafficking.
Yen’s reaction to G20
The news that emerged on the G20 caught the attention of USDJPY traders as the yen jumped against the USD to a new high since 1998, the day before the summit started, raising expectations for Japanese intervention. Attention at the meeting turned to the first reading of Japan's third-quarter (Q3) Gross Domestic Product (GDP) and US retail sales for October, amid hopes of easing divergence between the policies of the Fed and the Bank of Japan.
USDJPY has lost more than 5% in the last week. Now the price is consolidating between 140.750 and 138.400.
Conclusion
In general, this year’s summit showed that even if the world’s leaders have different opinions about certain topics, such things as world peace and wealth are priorities for everybody.
Similar
What Does the CPI Have in Store?
On January 12, the Bureau of Statistics will publish the Consumer Price Index (CPI) figures, a key index for determining interest rates. While we await the release, experts forecast a decline in the CPI data, a hint at weaker Dollar values in the global markets.
CAD Might Weaken Ahead of the Macklem's Speech
Later today Tiff Macklem, the governor of the BoC (Bank of Canada) is expected to speak at the Riksbank's International Symposium as part of a discussion panel on 'Central Bank Independence'.
Latest news
Will USDJPY slide lower in 2023?
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?
BoC Rates Could Alter The Trend on USDCAD and others
Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.
MSFT faces gloomy forecasts ahead of earnings report
In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.
