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On October 24th, Moodys maintained Frances sovereign credit rating at Aa3, refraining from a downgrade, but warned that slowing economic growth, a widening fiscal deficit, rising financing costs, and social protests could hinder fiscal consolidation. Frances fiscal deficit this year is projected to reach 5.4% of GDP, and the government plans to reduce the deficit to 5% by 2027, but the budgets passage remains uncertain due to a lack of parliamentary majority support. The French National Assembly rejected the revenue portion of the 2027 social security budget on Friday, and the main budget will continue to be reviewed next week. French bond market pressures persist, with yields rising among the highest of developed economies this month, reaching a 24-year high; the spread between French and German 10-year bond yields widened to 178 basis points on Thursday, compared to 85 basis points in early September. France has also recently been downgraded by Scope, and Morningstar DBRS revised its outlook to negative; S&P is expected to update its rating on November 27th.Barclays: Inventory depletion and recovering demand are tightening the spot market. Despite policy efforts to ease diesel supply shortages, short-term oil price risks remain clearly skewed to the upside.Barclays: The conflict with Iran is unlikely to subside quickly, further tightening the already tense spot oil market.On October 24th, Cuban Foreign Minister Rodriguez refuted the USs claim that Cuba would be "settled incidentally" after the war with Iran, stating on the 23rd that Cuba rejects all threats from the US. Rodriguez stated on social media that Cubas coast has beautiful beaches as well as jagged reefs, and it will not be friendly to those who come with hostility and a desire for conquest. Earlier that day, US President Trump, at a campaign rally in Florida, claimed that the US was prepared to "settle down" the Cuban issue after ending the war with Iran.The Central Bank of Brazil approved several resolutions to strengthen the responsibilities of financial institutions in providing and disbursing credit.

During the Fed's "Silence," gold maintains a delicate dance

Aria Thomas

Jul 19, 2022 10:28

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A few dollars here, a few dollars there: gold maintained its delicate dance on Monday, climbing little despite the Federal Reserve's utter silence following two weeks of relative hubbub over the possibility of a major rate increase in July.


Gold bulls and bears were left to choose their next moves on their own, as the central bank adhered to its regular 'blackout' period for comments before its rate announcement on July 27.


A week of relatively sparse U.S. economic data offered traders greater control over market flows.


Despite the insignificance of the climb itself, the Dollar Index's steepest one-day loss since mid-June helped establish the direction in favor of longs.


The most commonly traded gold futures contract on the New York Comex, August, finished at $1,710.20 per ounce, up $6.60, or 0.5 percent.


Thursday's price of $1,695 for the August gold contract was the lowest level in 27 months.


The U.S. gold standard has dropped for five straight weeks, shedding 9% in total. It has declined by 7 percent year-to-date.


Since the Consumer Price Index for the year to June hit a new four-decade high of 9.1 percent on Wednesday, rate betting has been unpredictable, with the pendulum swinging between an unusual hike of 100 basis points for July and the wider consensus of a 75 basis point increase.


Prior to Monday, the dollar had also repeatedly reached two-decade highs, dealing a severe blow to non-dollar consumer oil demand.


Ed Moya, an analyst at the online trading platform OANDA, said, "The dollar is falling to begin the trading week, but this may not be the high." "As a result, gold may have difficulty surpassing $1,750," he added.


According to Sunil Kumar Dixit, the chief technical strategist at skchart.com, if gold is able to break out over $1745 it might proceed to $1770-$1800 and $1815 from there.


"As a previous safe haven, gold is not yet out of the woods, and its doors remain open for another slide below $1,700, this time targeting $1683, $1,666, and $1,652," Dixit added.

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