Gold Potentially Retests the 1,900 Area

Gold extended its decline for the third straight time on Thursday, weighed down by a jump in the US Dollar and US bond yields after the Federal Reserve reiterated its hawkish stance on interest rates. Gold fell 0.5% to hit a low of 1,913.91

The Fed held interest rates steady on Wednesday, but its updated quarterly projections showed that rates would likely be raised once again this year and kept tight through 2024.

Japanese Prime Minister Fumio Kishida said on Thursday that his government would not rule out any option in dealing with the overwhelming problem. volatility in the foreign exchange market.

“It is important that the exchange rate moves stably, reflecting fundamentals,” said Kishida in a question and answer session at the Economic Club of New York which was broadcast online

“In fact, the authorities are in close communication internationally, and they have the same understanding that excessive volatility is undesirable,” he said. The government is closely monitoring movements in the foreign exchange market “with a high degree of vigilance,” and “will respond appropriately to excessive volatility without ruling out any options,” he said.

US interest rates move higher. The two-year Treasury yield, which reflects interest rate expectations, rose 2 basis points to 5.140%, while the benchmark 10-year bond jumped more than 13 basis points to 4.492%, the highest since November 2007. The dollar index, which measures the US currency against a basket Other currencies rose as high as 105.74, the strongest since March 8, pushing the yen close to its weakest point since November.

The dollar index later weakened, down 0.047% at 105.35, and the euro fell 0.01% to $1.0658.

Sterling, which has been slumping since July, fell from $1.23 to $1.22.

Oil prices ended lower in trading, rising as much as $1 a barrel after Russia's ban on fuel exports shifted focus from Western economic headwinds that had pushed prices down $1 a barrel earlier in the session.

U.S. West Texas Intermediate fell 3 cents to $89.63.

The Dow Jones Industrial Average fell 1.08%, the S&P 500 lost 1.64% and the Nasdaq Composite fell 1.82%.

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Gold Price Prospects for Friday (22/09/23)

Trading Data on Thursday (21/09)

Open: 1,930.56 High: 1,931.48 Low: 1,913.91 Close: 1,919.83 Range: 16.43

For the Resistance area, gold will test the 1,930.64 price area with a wider push towards the 1,939.67 – 1,946.90 area

For the support area, gold will continue to test the price level of 1,912.60 with deeper pressure towards the 1,902.58 – 1,884.74 area

Oil Price Prospects for Friday (22/09/23)

Trading data on Thursday (21/09)

Open: 89.30 High: 90.97 Low: 88.36 Close: 89.58 Range: $2.61

Oil will test the resistance area at 90.36 with a broader push towards the 91.32 – 92.39 area

For the support area, Oil will continue to test the price level of 88.38 with deeper pressure towards the 87.39 – 86.49 area