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Renewed demand for geosafety supports gold prices as investors await the release of the U.S. Consumer Price Index
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Hello everyone, today XM Forex will bring you "[XM Forex Official Website]: Geographical hedging demand has revived to support gold prices, investors are waiting for the release of the US Consumer Price Index". Hope this helps you! The original content is as follows:
On October 24, in early trading in Asia, spot gold was trading around US$4,112 per ounce. Gold prices rose more than 1% on Thursday as the resurgence of geopolitical risks stimulated safe-haven demand, and investors were preparing for In preparation for key U.S. inflation data released on Friday; U.S. crude oil traded around $61.63 per barrel. Oil prices rose nearly 4% on Thursday, reaching their highest point in two weeks, after the United States imposed sanctions on major Russian suppliers Rosneft and Lukoil.
The dollar rose against the yen on Thursday as traders awaited U.S. consumer inflation data delayed until Friday and weighed the impact of new U.S. sanctions on Rosneft. The sanctions have boosted oil prices.
The U.S. dollar was last up 0.38% at 152.525 yen, while the U.S. dollar index, which measures the dollar's exchange rate against a basket of currencies, was almost flat at 98.925.
Although the U.S. government remains in a state of shutdown, the United States will still release inflation data to assist the Social Security Administration in its annual cost of living adjustment for 2026.
These data will remain closely watched even as the Fed's policy focus shifts from inflation to U.S. labor market conditions. Nick Rees, head of European macro analysis at Monex, said the data will be significant for slightly different reasons than usual. Obviously, the Fed has stopped paying attention to CPI, but we can still use the data to make some assumptions about consumer spending and growth.
Oil prices rose nearly 5% on Thursday as new U.S. sanctions on major Russian suppliers Rosneft and Lukoil over Russia's war in Ukraine followed Britain last weekcompanies have imposed sanctions.
The U.S. Treasury Department called on Moscow to immediately agree to a ceasefire and expressed readiness to take further action.
Marc Chandler, chief market strategist at Bannockburn Capital Markets, said the new sanctions have put pressure on the yen and other currencies related to oil imports. He said: "Japan is a big oil importer, and rising oil prices are not good for it." Domestic factors have also put pressure on the yen, which is falling towards a seven-month low of 153.29 yen hit last week. This week, the yen once fell to a low of 153.29 yen after Sanae Takaichi, who is widely regarded as a fiscal and monetary dov, was elected as leader of Japan's ruling party. Now that Sanae Takaichi has taken office as prime minister, the market is awaiting details of the stimulus package.
Yutaka Miura, senior technical analyst at Mizuho Securities, said: "Buying based on the Sanae government's policy hopes has ended. The market now needs to evaluate specific policies and their feasibility."
Some European currencies also attracted some market attention on Thursday, with the Norwegian crown appreciating on rising oil prices. The dollar was last down 0.42% against the Norwegian currency at 9.9717 crowns, falling below the 10 crown level for the first time in two weeks, while the euro hit a month low at 11.568 crowns.
In other currencies, the pound fell 0.25% to $1.332, partially recovering from Wednesday's losses caused by weaker-than-expected consumer inflation data. The data prompted markets to increase bets that the Bank of England will cut interest rates again this year.
EUR/USD was at $1.162, up 0.06%. The release of the minutes of the Swiss National Bank's first interest rate decision-making meeting had little impact on the Swiss franc, which weakened to 0.7949 Swiss francs per US dollar.
Asian Market
The latest data released by the Japanese Statistics Bureau on Friday showed that Japan’s national consumer price index (CPI) rose by 2.9% year-on-year in September, www.xmh100.compared with the previous value of 2.7%.
More details show that the national CPI excluding fresh food increased by 2.9% year-on-year in September, www.xmh100.compared with the previous value of 2.7%. This number is in line with market consensus.
The CPI excluding fresh food and energy increased by 3.0% year-on-year in September, www.xmh100.compared with the previous value of 3.3%.
European Markets
The Swiss National Bank reiterated its accommodative stance in the summary of its September policy meeting, noting that inflation is expected to remain www.xmh100.comfortably within a range consistent with price stability. The Governing Council discussed the outlook in detail with experts and concluded that “all available information suggests that inflation remains within a range consistent with price stability” and that it is “not expected to remain negative for a sustained period”.
While price pressures remain subdued, policymakers highlighted rising levels of external uncertainty, particularly stemming from U.S. trade policy. The SNB specifically warned of the potential for tariffs on pharmaceuticals, one of Switzerland's main export sectorsIt will put pressure on GDP in the short and medium term. However, the extent of the drag remains uncertain and will depend on how global supply chains and exchange rates evolve. Large currency moves are considered a key risk factor for the inflation outlook.
The Board of Governors noted that monetary policy remains "expansionary" and that the full impact of previous easing policies is still permeating the economy. Despite subdued inflationary pressures and a slight deterioration in growth prospects, policymakers believe the current stance is supporting a gradual rise in prices and providing important support to domestic activity.
In this context, the SNB concluded that "further easing of monetary policy is inappropriate." Conditional inflation forecasts and overall growth assessments justified keeping interest rates steady, with the policy rate unchanged at 0%.
U.S. market
Canadian retail sales in August increased by 1.0% month-on-month to CAD 70.4B, in line with market expectations, mainly due to the strength of motor vehicle and parts dealers. Six of nine subsectors posted gains, underscoring that consumer activity remains solid despite rising borrowing costs.
Excluding volatile factors such as autos and fuel, core retail sales rose 1.1% from the previous month, indicating that household spending momentum remained solid in late summer.
However, the outlook for next month looks weaker. Statistics Canada's advance estimate points to a -0.7% month-over-month decline in sales in September, suggesting some momentum will be lost heading into the fourth quarter.
The above content is all about "[XM Foreign Exchange Official Website]: Geosafety demand has resumed to support gold prices, investors are waiting for the release of the US Consumer Price Index". It was carefully www.xmh100.compiled and edited by the editor of XM Foreign Exchange. I hope it will be helpful to your trading! Thanks for the support!
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