For a long time, traders considered American Non-farm Payrolls (NFP) the most important release in the market. However, the situation has changed. Now US CPI moves financial markets.
Gold reaches 6-month maximum
The yellow metal’s objective for $1,300 is still intact, although gold bugs don’t seem to hurry to get there, expecting equity markets to dive for the next big move up.
On Friday, on the Comex exchange, gold futures reached new six-month maximums hitting $1,284.55 a troy ounce.
However, instead of settling at those maximums in a move toward $1,300, the financial market gave back some, to conclude up 0.1% coming up with a reading of $1,280.65.
On Friday, the yellow metal’s retreat at the maximums came as American equities flitted between losses and profits.
Going into next year, financial analysts actually expect the price of the yellow metal to derive benefits from geopolitical risks as well as a weakening greenback. They actually expect physical demand for the yellow metal to go up exponentially because traders watch the American debt explode as well as the costs of entitlements getting absolutely out of hand as politicians keep neglecting all the warning signs.
Assessing the purchasing power of the American currency against its main rivals the USD index managed to hit a one-week minimum of 95.743.
For the yellow metal, it was the ninth positive settlement for 10 trading days, backed by the general decline in stocks against the backdrop of worries of a global downtime and also fears over the partial American government shutdown since the previous week. However, for the year, the yellow metal is still on track for a 2% dive.
On the Comex exchange, silver futures tacked on by 0.8% being worth $15.44 a troy ounce.
As for palladium futures, they sank by 0.8% reaching $1,185.20 per ounce. Platinum futures went down by 0.8% concluding at $789.80.
Meanwhile, copper futures managed to surge by 0.4% on the Comex exchange ending up with $2.68 per pound.
United States Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on November 5, 14:30 GMT+2.
United States Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on October 8, 15:30 GMT+3.
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.
Every week we expect many interesting events that can shake the market.