Gold prices are witnessing stability for the fourth consecutive week,
amid expectations of further US interest rate hikes.

With the support of the decline in the yield on US 10-year bonds at 2.61%,
gold prices witnessed a rise at the beginning of this week’s trading,
with the continued decline in the dollar’s prices against the rest of the major currencies,
awaiting the release of important news, represented in the monthly US jobs report,
after a signal Jerome Powell, the American president,
said that the economy is in a state of tightening, as he described it,
with reference also to available job opportunities and the historically low unemployment rate.

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Gold prices are at their peak in four weeks

US manufacturing slows and production falls at slowest pace in two years.

Cryptocurrency market developments after bottoming out

Gold prices are at their peak in four weeks

For the third week in a row, gold prices witnessed a rise and maintained their gains,
as gold found the necessary support to rise, as a result of the economic reports issued,
which indicate the state of weakness in the economy
and its arrival to the stage of unexpected contraction during the second quarter,
at a time when industrial activity in the euro area is slowing.

Gold after the interest rate decision

Gold is inversely correlated with interest rates as it does not generate returns,
and represents a safe haven in times of high inflation,
and gold was greatly affected after the US Federal Reserve’s decision to raise
interest rates by 75 basis points during its last meeting,
and the Fed seeks to raise further in the month of September by 50 basis points,
according to Expectations in order to control the economic slowdown,
at a time when investors are increasingly concerned about the economic situation that indicates a near recession,
contributed to the increase in demand for gold by investors to hedge against the risks of inflation and recession.

The yellow metal prices recorded a 2.2% rise last week,
at a time when the chances of the Federal Reserve increasing
that it will work to limit the accelerated pace of its interest rate hike,
and gold futures contracts for December delivery rose by 0.3% to levels of 1787.70 dollars an ounce,
and the US dollar index declined. At 105.44 points

artical name Gold prices are witnessing stability

US manufacturing slows and production falls at slowest pace in two years.

With the contraction and turmoil in the US economy,
industrial activity in July witnessed a slowdown and weak demand coverage due to the decline in production,
and the Institute for Supply Management’s index of factory activity fell to its lowest level since June 2022 at 52.8,
but readings released yesterday, Monday,
above 50 indicate expansion.
And the group’s production scale fell to its lowest level in two years,
in light of the decline in demand for goods.

The head of the Manufacturing Business Survey Committee,
regarding the state of weakness experienced by the American economy,
confirmed the decline in new demand prices during the second month
at a time of fear of an increase in the surplus inventory in the supply chain to 57.3,
which is the highest level since 1984,
and the results showed a rise in the manufacturing inventories index,
to be Available in the event of disruptions in the supply chain.

The ISM general index witnessed a decline of up to 11 points from its peak for several decades in March 2021,
at a time when the global economy exited from the state of closure after the Corona pandemic,
in order to meet the large quantities of demand,
and since then the form of consumption has varied from goods to services.

11 industries recorded growth in July, led by clothing, oil and minerals,
and a contraction of 7 industries, led by wood products, paper and furniture,
at a time when the data issued regarding the industry in the world are similar, namely,
the S&P and ISM indicators at a time when the economy is slowing in the world,
specifically in Europe and weak production.

In Asia

While the price index paid in July for materials used in the production process fell by 18.5 points,
the lowest level in two years.

And the supply chain problem continues due to the shutdowns in China due to the epidemic,
which leads to the shortage of chips,
and also the problems of slowdown and labor shortages are a major obstacle.

ISM’s accumulation to its lowest level since June 2020, and in China,
manufacturing activity unexpectedly contracted in July,
with the contraction in real estate sales,
which indicates the difficulty of recovery in the economy,
but officials believe that the US economy is still resilient despite the recession
that The economy is experiencing because of external pressures as well,
which is reflected in industrialization significantly

artical name Gold prices are witnessing stability

Cryptocurrency market developments after bottoming out

At the beginning of trading on Tuesday, the digital currency market witnessed a collective decline,
as a result of the geopolitical tensions that the world is going through,
which led to investors’ aversion to risk and away from high-risk assets,
especially digital currencies, as cryptocurrencies lost 10 billion dollars from their market value to reach 1.05 trillion.
The price of “Bitcoin” recorded stability at levels of $22,720,
“Ethereum” recorded $1,570.85, and “Binance Coin” fell to $277.66.

And the markets are still highly nervous due to the crisis of the visit arranged by the United States to Taiwan,
amid severe warnings from the Chinese side, because China considers it part of its territory,
and the warnings were explicit from the Chinese Foreign Ministry,
and that this step will make stubbornness and insistence on the visit have a direct military response.

The negative expectations during the month of August were for the digital currency market,
which may witness a state of rapid fluctuations of the bitcoin currency,
as stated by the founding partner of “Nexo” company,
the digital currency lender, and on the other hand,
Onda analysts also see that the collapse period for the cryptocurrency market may be in It has been forgotten
and will rise again in the coming period after holding for a while at the bottom

Britain is seeking to establish laws regulating cryptocurrency investments

The Financial Conduct Authority in Britain has warned its investors of the risks of the digital currency market,
which may cause significant losses to their money,
and efforts are beginning to limit bitcoin investments to ban the reward program for customers,
and the authority is also seeking to regulate work in digital currencies by establishing a set of laws,
including the inclusion of currencies Digital is an intermediate category of restricted mass market investments,
retail investors are allowed to market normally but with restrictions,
and there will be a law prohibiting risking more than 10% of clients’ investments,
and they must understand well how much risk they are going to be exposed to when entering this market.

artical name Gold prices are witnessing stability

Gold prices are witnessing stability

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