Copper futures fell toward $4 per pound in early September, losing nearly 3% so far this month as sentiment took a hit after weak US manufacturing data reignited recession fears.
Recession
Gold Price Forecast: China Can Recover From The crisis of Recession
Gold Price Forecast: Expectations that China may overcome the recession woes and Fed’s Powell may repeat his cautious statements at the Jackson Hole also seemed to have tested the DXY bulls. “Various Chinese state media agencies are coming to the rescue of the local currency, the yuan, after the recent depreciation, justifying that the country’s strong exports should offset a stronger dollar and hawkish Fed rate hikes,” mentioned Reuters on Wednesday. Concerns about China become important for gold traders due to the dragon nation’s status as one of the world’s largest gold consumers.
Spot Gold slip to a one-week low of $1,772 [16-08-2022]
Spot gold (Yellow Metal) fell to a one-week low of $1,772 a troy ounce on Monday as risk aversion benefited the American currency against all of its major rivals. gold managed to bounce after the US opening, as Wall Street opened in positive territory despite the ruling dismal market mood. Softer-than-anticipated Chinese data released at the beginning of the day spurred risk aversion as the focus returned to a potential economic setback.
Spot Gold Price Forecast: Next Crucial Support Near the $1,712 Level
Spot Gold Price Forecast: The combination of diverging forces held back traders from placing aggressive bets and led to subdued price moves for the third successive day on Monday. Nevertheless, the bias still seems tilted in favour of bearish traders as the focus now shifts to the latest US consumer inflation figures, due on Wednesday. Apart from this, the US monthly Retail Sales data and Prelim Michigan Consumer Sentiment on Friday will influence the USD price dynamics. Traders will further take cues from the broader market risk sentiment to grab short-term opportunities around gold.
Bank of America Merrill Lynch Fund Managers Expecting a Global Recession in the Next 12 Months
In its latest survey of fund managers, Bank of America Merrill Lynch points out that the proportion of fund managers expecting a global recession in the next 12 months was at its highest since 2011. Last week, the US yield curve inverted, setting the stage for the yellow metal to shine even brighter.
Equities Tumbled Around the World on Reports
Gold Silver Reports (GSR) – Equities tumbled around the world on reports that the Treasury department will propose limits on Chinese technology investment, straining already tense relations between the world’s two largest economies. Navarro said on CNBC that there were no plans to impose restrictions, sparking a late-day rebound. China and Europe warned the escalating trade war could trigger a global recession.