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Asia – Commodities Fundamental Forecast | 26 September 2023

Gold (XAU)

Key news events today

CB Consumer Confidence (2:00 pm GMT)

FOMC Member Bowman Speaks (5:35 pm GMT)

What can we expect from DXY today?

The Conference Board Consumer Confidence survey pulled back in August, erasing the early summer gains as the hot labour market cools and high interest rates bite the American consumer. The estimate for September points to another decline for this survey as consumers were less optimistic about their short-term income prospects as well as the short-term outlook for the labour market.

Federal Reserve Governor Michelle Bowman is due to deliver pre-recorded opening remarks at a FedCommunities event in Washington DC where she could once again reiterate her calls for further rate hikes to rein in inflation. Although the Federal Reserve did not increase the Fed Funds rate last week, Fed officials are jawboning stronger demand for the US dollar with their hawkish statements which would potentially add further downward pressure on gold prices.

Next 24 Hours Bias

Medium Bearish


Key news events today

API Weekly Crude Oil Stock (8:30 pm GMT)

What can we expect from Oil today?

API crude stocks experienced a larger than expected draw last week as nearly 5.3M barrels of crude were utilized, indicating higher demand in the US. However, fears are now mounting that higher-for-longer US interest rates will weigh on crude oil demand despite the ongoing tightness in supply levels. In addition, renewed concerns over China’s economy have also dampened its growth prospects. WTI oil failed to break above $90 per barrel yesterday and could now slide under the $89-level today.

Next 24 Hours Bias

Weak Bearish