International spot gold Tuesday (September 15) is still not broken, intraday low hit $1948.14 / ounce, continue to maintain the recent triangle in consolidation. Geopolitical risks are still rising, keeping safe-haven gold sentiment bullish, but caution ahead of the Fed’s policy meeting has helped limit short-term moves, with investors keeping a close eye on the dollar.
Have obvious signs, the New York mercantile exchange (Comex) and the London bullion market association (LBMA) can be delivered to qualified buyers of physical gold supply nervous, the approval of the New York mercantile exchange huge expansion of the metal bar list, the New York mercantile exchange, the open interest of sharp contractions when prices fall, the herald a more and more tight.
Meanwhile, Britain’s exit from the European Union deepened investors’ concerns after the first reading of its internal market bill, which could overturn some of the terms of the exit agreement, passed a parliamentary vote. The move could break up trade talks with the EU and leave Britain without a deal when the transition period ends at the end of the year. As a result, risk events in the market are still brewing.
Separately, the US Customs and Border Protection (CBP) yesterday banned imports of cotton, clothing, real hair products, computer parts and other goods from six Chinese companies or institutions, according to a statement on its website. The move is mainly aimed at Xinjiang. Sources say the Trump administration has put on hold a total ban on cotton and tomato products in China’s Xinjiang region, saying it is still working on it.
The World Trade Organization ruled today that the Trump administration’s tariffs on more than $200 billion worth of Chinese goods are illegal. In response, the spokesperson of the Chinese Ministry of Commerce said that China appreciates the objective and fair verdict of the expert group. U.S. Trade Representative Robert Lighthizer expressed frustration, but noted that the first phase of the deal would not be affected by the ruling.
Separately, the LATEST statement from the U.S. Embassy in Beijing confirmed that U.S. Ambassador to China Branstad will leave Beijing in early October as his special Envoy.
On Saturday, Mr. Trump hinted that Ms. Branstad might join the race. In a video posted on Twitter by Senator Joni Ernst of Iowa, Mr. Trump said that Ms. Branstad would be returning home. Branstad is stepping down, though his successor has not been confirmed. The two countries are at loggerheads over everything from China’s new security law in Hong Kong to the handling of the COVID-19 pandemic and territorial disputes in the South China Sea.
For now, investors are already focused on this week’s policy decision by the Federal Reserve. Marc Chandler, chief market strategist at Bannockburn Global Forex in Bannockburn, New York, said the Fed’s rhetoric for the meeting will be very dovish, but Powell is unlikely to take a position on bond-buying targets or yield curve control. The Fed’s bigger worry than inflation is the downside risk to the economy. U.S. stocks are likely to remain volatile but not sharply lower in the coming week. After all, if the Fed is dovish, the dollar could fall, but that would be good for equities.
Technically speaking, once the first target of $1967.90 is breached, gold’s next target will be $2008.80, according to Economies.com. Maintaining gold above $1,934.86 an ounce is important for continued bullish expectations.
Bloomberg Intelligence points out that gold’s bull market is just beginning, and the possibility of gold hitting $4,000 by 2023 cannot be ruled out. Gold is on track to outperform silver by the end of the year, according to its data.
After breaching the $2,000 level, gold remained in a trading range of $1,930 to $1,980. But despite a few weeks without major price moves, gold will still outperform silver in the second half of the year, said Mike McGlone, senior commodity strategist at Bloomberg News.