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The market expects OPEC+ to press the "pause button" for increasing production this week, and gold breaks through $3,500!
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Hello everyone, today XM Forex will bring you "[XM Group]: The market expects OPEC+ to press the "pause button" for increasing production this week, and gold breaks through $3,500!". Hope it will be helpful to you! The original content is as follows:
On September 2, during the Asian session on Tuesday, spot gold trading around $3,480/ounce, and gold prices hit a more than four-month high of $3,489.78/ounce on Monday, just $10 away from the April high. Boosted by the Federal Reserve's interest rate cut bets and the weakening of the dollar, silver prices also exceeded $40 per ounce for the first time since 2011; U.S. crude oil trading around $64.57/barrel, as the market was worried that the intensified air strikes in Russia and Ukraine could lead to supply disruptions, and the weakening of the dollar provided additional support for oil prices. The dollar hit a five-week low on Monday, and investors were waiting for a series of U.S. job market data this week, which may affect expectations for the Federal Reserve's monetary policy path. Traders are also evaluating U.S. inflation data and court rulings that most of Trump’s tariffs are illegal, and his wrestling with the Fed over his attempt to fire Fed Director Cook.
According to the CMEFedWatch tool, the money market recently expects the Federal Reserve to cut interest rates by 25 basis points in September and a 100 basis points rate cut by the fall of 2026 is about 90%.
Analysts say the U.S. economy is no longer as good as it has been for most of the past decade, providing reasons for a weaker dollar, and further signs of weaker job markets are expected to support this claim.
Social Bank analyst Klaus Baader said a severe weakness (economic data) would mean the Fed would respond more powerfully than market forecasts, but if the May/June weakness is seen as a statistical illusion, then, given the prospect of rising inflation in the next year or so, the rate cut seems to beThere is no need," some analysts still believe that the Fed may cut interest rates by 50 basis points later this month.
Political risks are the focus of market attention, and the French government may face failure in a vote of confidence on a plan to cut budgets across the board. Analysts point out that the euro will only be under pressure when such risks show signs of spreading within the euro zone, which is not obvious at the moment.
Investors are also paying close attention to trade policy while the U.S. continues to negotiate with major trading partners. Mohit Kumar said we don't think the court ruling will have much impact on the market, and the matter will be handed over to the Supreme Court, which is likely to make a ruling in favor of Trump. As Trump stepped up efforts to exert greater influence on monetary policy, concerns about the independence of the Federal Reserve have also dragged down the dollar.
Asian Market
Japanese trade negotiator Ryoseki Akazawa said on Tuesday that his next visit to the United States has not been determined. Akazawa added that there is no misunderstanding with the United States in trade negotiations.
BoJ Deputy Governor Izuno On Tuesday, Japan's real interest rates remain low, adding that it is appropriate to continue hikes if the economic outlook is met.
European market
European unemployment rate fell slightly from 6.3% in June to 6.2% in July, in line with expectations. According to the European Statistics Office, the broader interest rate in the EU fell from 6.0% to 5.9%.
European Statistics estimates that 13.025 million people in the entire EU were unemployed in July, of which 10.805 million people were unemployed in the euro zone. 165k drops, and unemployment in the euro zone drops by -170k.
ECB President Christina Lagarde issued a stern warning today that it would be "very worrying" if U.S. President Donald Trump successfully controls the Fed.
Lagarde stressed in an interview with Classic Radio, "If the U.S. monetary policy is no longer independent but depends on the orders of this or that person, then I believe that due to the impact this will have on the global scale, the impact on the U.S. economic balance may be very worrying because it is the world's largest economy.
Lagarde added that Friday's U.S. Court of Appeals ruling declared most of Trump's tariffs illegal, bringing "further uncertainty" to the global economic outlook. Washington's policy unpredictability www.xmniubi.combined with structural risks elsewhere has put investors on alert as global growth is already under pressure from weak trade flows and tariff disputes.
Talking about domestic affairs, Lagarde talked about the increasing political risks in France ahead of the September 8 vote of confidence. Opposition has pledged to overturn Prime Minister Francois Bayrou's minority government due to unpopular budget austerity plan for 2026. The political drama hit French bonds and stocks, raising questions about the stability of the euro zone's second largest economy.
However, Lagarde stressed that France's banking system is not the source of the problem. She noted that banks have much better capital and structure than during the 2008 financial crisis and are still managed responsibly. Nevertheless, she acknowledged that the market was sensitive to political shocks and that the uncertainty of government stability continued to suppress risk sentiment.
U.S. Market
Tariffs-①Trump: India has proposed to lower the tariffs to zero, but it is too late. India should have done this a few years ago.
Bestert: Trump may declare a national housing emergency this fall, and the plan may include exemptions from building materials. Confidant that the Supreme Court will support Trump's tariff policy.
The U.S. Department of Efficiency is using artificial intelligence to try to cut down on the SEC's rules and regulations.
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