XAU/USD Current price: $2,515.31

• Upteat United States macroeconomic encouraged near-term US Dollar buying.
• The US will release the Federal Reserve’s favorite inflation gauge at the end of the week.
• XAU/USD could correct lower in the near term, although fresh record highs are still on the table.

Spot Gold retains its bullish bias at the beginning of the week, extending Friday’s gains towards the record high posted last week at $2,531.60. The US Dollar trades mixed across the FX board but was overall weak after Federal Reserve (Fed) Chairman Jerome Powell said that the time has come for monetary policy to adjust, speaking at the Jackson Hole Symposium. Once again, Powell conditioned an interest rate cut to incoming data, but market participants are confident the Fed will deliver a rate cut in the upcoming September meeting.

Other than that, the United States (US) released Durable Goods Orders on Monday, which unexpectedly rose by 9.9% in July, much better than the previous 6.9% or the 4% anticipated. Also, the Dallas Fed Manufacturing Index improved in August to -9.7 from the previous -17.5.

In the meantime, action across financial boards remains limited ahead of critical US data. The country will release next Friday the July Personal Consumption Expenditures (PCE) Price Index, the Fed’s favorite inflation gauge. At the time being, the annual increase is foreseen at 2.5%, matching the June reading, while monthly inflation is expected at 0.2%, slighly higher than the previous 0.1%.

XAU/USD short-term technical outlook  

The daily chart for XAU/USD shows the bright metal hovers around Friday’s high and aims to extend gains. Technical indicators have partially lost their upward strength but hold well above their midlines, far from suggesting bullish exhaustion. At the same time, Gold stands above all its moving averages, with the 20 Simple Moving Average (SMA) heading firmly north at around $2,458.75.

For the near term, technical readings in the 4-hour chart suggest a corrective decline may develop in the next few sessions. Technical indicators have retreated from their recent lows and head firmly lower, although within positive levels. At the same time, the 20 SMA remains directionless, just below the intraday low, while the 100 and 200 SMAs maintain their bullish slopes below the shorter one, limiting the case for a steeper decline.

Support levels: 2,508.80 2,496.40 2,485.10  

Resistance levels: 2,523.50 2,531.60 2,542.00

• The crude oil market rallied a bit during the early hours on Friday, and then simply took off after Jerome Powell finally admitted that the Federal Reserve is likely to cut rates in a bit of a cycle.
• With that being said, the market also recently has seen the $72.50 level as a major support level and an area that I think continues to attract a lot of people.
• The stochastic oscillator is crossing underneath the oversold condition. So, it does suggest that we are going to go to the upside.

Pullbacks Could be Opportunities

With that, I think short-term pullbacks continue to be buying opportunities. It’s likely that the West Texas intermediate crude oil market goes looking to the $79.50 level. That’s basically where the 200 day EMA is hanging around. And therefore, I think you’ve got a situation where a lot of technical traders will be paying attention.

The market is also going to have to deal with the fact that the overall demand picture is still a question as we have to wonder whether or not the markets are going to see enough demand. Is the economy slowing down? If it is, then we could get a situation where traders will look at this through the prism of perhaps a market that will maybe go sideways going forward or potentially break down, but it’s really not until we break down below the $69 level that I would be concerned.

In general, I do think that eventually we try to sort things out, but right now it just looks like more chaos, which is all we’ve had in the markets as of late. I don’t see the oil market being any different than the other noisy markets that we have seen, and with this I am cautious about being “too big” in this market, as there are a lot of factors that will come into play when it comes to pricing the oil market

Want to trade the oil markets? Get our most recommended Forex brokers for oil trading here.

• Gold price gains momentum around $2,515 in Monday’s early Asian session. 
• Fed’s Powell said “the time has come” for the US Fed to begin lowering interest rates.
• The escalating tensions in the Middle East might further boost safe-haven assets like Gold. 

Gold price (XAU/USD) holds positive near $2,515 an ounce during the early Asian session on Monday amid the weaker US Dollar (USD) and dovish comments from the Federal Reserve (Fed). The uptick of the yellow metal is bolstered by the speech by Fed Chair Jerome Powell, signalling that time has come for interest rate cuts starting this September.

Fed Chair Jerome Powell delivered the dovish message at the Kansas City Fed’s annual economic symposium in Jackson Hole on Friday, which has weighed on the USD broadly. Fed’s Powell said that “the time has come” for the central bank to begin lowering interest rates. Powell acknowledged recent softness in the labor market in his speech and stated that the Fed did not “seek or welcome further cooling in labor market conditions.” 

Financial markets have fully priced in a 25 basis points (bps) rate cut, while the chance for a deeper cut stands at 36.5%, up from 24% last week, according to the CME FedWatch Tool. The growing expectations of easing monetary policy by the Fed might further support the precious metal as it makes gold more attractive for other currency holders.

Furthermore, Hezbollah launched hundreds of rockets and drones at Israel early on Sunday, as Israel’s military said it carried out a wave of pre-emptive strikes across southern Lebanon to thwart a large-scale rocket and drone attack by Hezbollah, per Reuters. The ongoing geopolitical tensions in the Middle East might boost the safe-haven asset demand, benefiting the Gold price. 

• Silver price depreciates due to a slowing economy in China, the world’s largest manufacturing hub.
• The third plenum has indicated no major changes in the economic strategy of top consumer China.
• The non-yielding Silver struggled after Tuesday’s hawkish remarks from Fed member Dr. Adriana Kugler.

Silver price (XAG/USD) retraces its recent gains, trading around $30.90 per troy ounce during the European hours on Wednesday. The grey metal faces challenges due to a slowing Chinese economy, the world’s largest manufacturing hub. China’s industrial demand for Silver is significant, as it is essential in various applications such as electronics, solar panels, and automotive components.

China’s Gross Domestic Product (GDP) grew 4.7% year-over-year in the second quarter, compared to a 5.3% expansion in the first quarter and an expected 5.1%. This marks the slowest growth since the first quarter of 2023.

The third plenum of the Chinese Communist Party’s 20th National Congress, held from July 15 to 18, has so far indicated no major changes in the economic strategy of top consumer China. President Xi Jinping urged the Communist Party to maintain “unwavering faith and commitment” to its strategic agenda.

Standard Chartered anticipates that the People’s Bank of China (PBoC) will implement cuts in both interest rates and the reserve requirement ratio (RRR) as GDP growth decelerates in the second quarter. China’s growth drivers remain uneven, and trade tensions are escalating, with the US and EU imposing new tariffs on Chinese electric vehicles (EVs).

Additionally, Silver prices struggle due to the emergence of the hawkish sentiment surrounding the Federal Reserve (Fed) policy stance after the speech from Federal Reserve (Fed) Board of Governors member Dr. Adriana Kugler on Tuesday. Dr. Kugler indicated that if upcoming data does not confirm that inflation is moving toward the 2% target, it may be appropriate to maintain current rates for a while longer.

Morgan Stanley has revised its oil price forecasts downward, reflecting expectations of increased supply from OPEC and non-OPEC producers amid signs of weakening global demand, the bank said in a report this week. The firm now anticipates that while the crude oil market will remain tight through the third quarter, it will begin to stabilize in the fourth quarter and potentially move into a surplus by 2025.

The adjustment comes as Morgan Stanley lowers its global oil demand growth estimate to 1.1 million barrels per day (bpd) for 2024, down slightly from its previous forecast of 1.2 million bpd. This revision is driven by multiple factors, including a slowdown in production growth from key non-OPEC countries such as the U.S. and Brazil. However, despite the downward revision in demand, the firm notes that these adjustments have actually marginally tightened the overall supply-demand balance for the remainder of the year.

Morgan Stanley had expected Brent crude prices to remain in the mid-$80s per barrel throughout the third quarter of 2024. However, recent market dynamics suggest that traders are already pricing in anticipated supply increases and demand softness expected in 2025. Consequently, the firm has cut its Brent price forecast for the fourth quarter to $80 per barrel, down from $85, and now expects prices to gradually decline to $75 per barrel by the end of 2025, slightly lower than their previous estimate of $76.

China’s economic slowdown has been a significant factor in this revised demand outlook. Morgan Stanley highlights several contributing elements, such as a surge in sales of LNG-powered trucks, which are displacing traditional diesel fuel, alongside the growing adoption of electric vehicles. Additionally, the firm points to slower growth in demand for petrochemical feedstocks as another reason for the lower demand growth estimate.

While current spot market conditions remain tight, Morgan Stanley’s analysis indicates that oil market participants are increasingly looking ahead to the anticipated softening in the latter part of 2024 and beyond. This shift in market sentiment underscores the cautious approach being taken by investors and industry stakeholders, who are preparing for a potential rebalancing of supply and demand dynamics in the coming years.

In summary, Morgan Stanley’s latest outlook suggests that while the immediate future may still see some tightness in the oil market, the longer-term trajectory points towards a more balanced market with potential price declines as supply increases and demand growth continues to slow.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com

Growing coffee culture driven by a rising level of disposable incomes among the region’s consumers is expected to drive the GCC Coffee Machine Market during the forecast period between 2024 and 2030.

Read the Market Summary Here:-https://reportocean.com/industry-verticals/sample-request?report_id=UAE102

GCC Coffee Machine Market – Industry Trends & Forecast Report, 2030

GCC Coffee Machine Market size was estimated at USD 2.87 billion in 2023. During the forecast period between 2024 and 2030, the GCC Coffee Machine Market size is projected to grow at a CAGR of 4.05% reaching a value of USD 3.79 billion by 2030. A prominent driver of the increasing coffee consumption across the region. Notably, the demand for coffee is prominent in residential areas, commercial establishments, and public infrastructures within the GCC. The ongoing construction of these infrastructures is poised to amplify the requirement for coffee machines, facilitating food and beverage services, particularly the provision of coffee to individuals, employees, and customers. In these settings, individuals seek coffee not only for its stress-relieving properties but also for its ability to enhance energy levels, thereby optimizing task performance. Caffeine, a central nervous system stimulant present in coffee, is recognized for combating fatigue and elevating consumer energy levels. Also, the introduction of green and organic coffee in the region has spurred significant demand, contributing to an increased need for coffee machines among end users. The thriving tourism sector in the region, attributed to diverse attractions such as theme parks, aquariums, museums, and heritage sites, is expected to drive coffee consumption in GCC countries. Public spaces, including metro stations, railway stations, and airports, witness coffee consumption as individuals opt for coffee to refresh themselves while awaiting transportation. The rising coffee consumption has led to the establishment of several restaurants, cafes, and coffee shops in the region, consequently bolstering the demand for coffee machines across the GCC.

Request To Download Free Sample of This Strategic Report @-https://reportocean.com/industry-verticals/sample-request?report_id=UAE102

Coffee Machine – Overview

Coffee machine is a widely utilized appliance in residential, commercial, industrial, and various settings, designed for the preparation of coffee. In the brewing process, the machine combines coffee powder with hot water. Users manually introduce coffee powder and cold water into the machine, prompting it to heat the water within the chamber before initiating the brewing process. These machines find extensive application for personal use or business endeavors, being popular in households, corporate offices, institutions, restaurants, and various venues. This trend is expected to contribute to an increased demand for coffee machines in the future.

GCC Coffee Machine Market

Growth Drivers

Growing Coffee Culture

The GCC Coffee Machine Market has seen a significant shift with the introduction of smart coffee machines that integrate Bluetooth, Wi-Fi, and artificial intelligence (AI). This adoption of technological advancements allows consumers to control their coffee machines using smart devices and have their coffee prepared to their liking. The connectivity features enable customers to customize the caffeine dose and monitor critical parameters like water levels, coffee bean quantities, and flavor preferences. Also, these smart coffee machines can be programmed to prepare coffee based on the set schedule or routine of the customers. The increasing adoption of smart coffee machines is expected in the coming years due to their advanced features, and this trend is particularly fueled by the growing coffee culture and high disposable income among the population in the GCC region.

Challenges

High Initial Cost

The GCC Coffee Machine Market growth faces a significant impediment in the form of high initial costs. This financial barrier poses a restraint, hindering potential market entrants and impacting overall market growth. The capital-intensive nature of acquiring and establishing coffee machine infrastructure can limit accessibility, particularly for smaller businesses or startups. Addressing this challenge is crucial for fostering market expansion, as reducing initial costs could enhance market participation and contribute to a more robust and inclusive coffee machine industry in the GCC region.

For an in-depth analysis, you can refer sample copy of the report @-https://reportocean.com/industry-verticals/sample-request?report_id=UAE102

Impact of Geopolitical Tensions on GCC Coffee Machine Market

The GCC Coffee Machine Market is impacted by geopolitical tensions in several ways. Trade wars, particularly between major economies like the United States and China, introduce the potential for increased tariffs on electronic components and manufacturing materials. Such tariff escalations can elevate production costs for coffee machine manufacturers, potentially translating into higher prices for consumers and a subsequent reduction in demand. Furthermore, geopolitical conflicts or natural disasters have the capacity to disrupt global supply chains, affecting the production and distribution of coffee machines, especially for companies relying on specific regions for component manufacturing or assembly. Economic recessions exacerbate challenges by inducing reduced consumer spending, particularly on discretionary items like coffee machines. As consumers become more price-sensitive during downturns, manufacturers may need to adjust pricing strategies to stay competitive, potentially impacting profit margins.

GCC Coffee Machine Market

Segmental Coverage

GCC Coffee Machine Market – By Type of Machine

By type of machine, the GCC Coffee Machine Market is divided into Drip Coffee Machine, Steam Coffee Machine, and Capsule Coffee Machine segments. The drip coffee machine segment holds the highest share in the GCC Coffee Machine Market by type of machine, primarily due to their reusability feature. Various components of these machines, including filters and cones, are designed for reuse, fostering a heightened demand for drip coffee machines. Also, the infusion of innovative technologies into drip coffee machines is anticipated to be a key driver for the growth of the Coffee Machine market in the region. Meanwhile, the capsule coffee machine segment is expected to witness the fastest growth rate during the forecast period. It can be attributed to its user-friendly design, lightweight construction, and cost-effectiveness in comparison to alternative coffee machines. Additionally, the appeal of lower energy consumption and maintenance costs is expected to attract a growing number of residential end-users towards opting for capsule coffee machines in the upcoming years.

Get a Free Sample PDF copy of the report @-https://reportocean.com/industry-verticals/sample-request?report_id=UAE102

GCC Coffee Machine Market – By Mode of Operation

Based on mode of operation, the GCC Coffee Machine Market is divided into Manual, Automatic, and Semi-Automatic segments.

GCC Coffee Machine Market – By Sales Channel

On the basis of sales channel, the GCC Coffee Machine Market is divided into Direct Sales, Wholesalers/Retailers, and Online segments. The wholesales/retailers segment holds the highest share of the GCC Coffee Machine Market by sales channel. It can be attributed to the availability of a broad range of choices and the ability to compare prices among different coffee machine brands and models. Customers commonly opt to acquire coffee machines from wholesalers or retailers that provide an extensive selection encompassing diverse brands like Nestle, Electrolux, Panasonic, and others, all available at a single point of purchase. Furthermore, these wholesalers or retailers frequently present various discount options for coffee machine purchases.

GCC Coffee Machine Market – By End User

Based on end user, the GCC Coffee Machine Market is divided into Hotels, Restaurants & Caf?, Corporates & Institutions, and Residential segments. The corporates & institutions segment holds the highest share in the GCC Coffee Machine Market by end user. The growing inclination of individuals towards coffee consumption has emerged as a prominent factor fueling the demand for coffee machines in hotel and corporate settings. Also, the rising preference for non-alcoholic beverages among millennials, heightened awareness of low-sugar drink options, and the busy schedules prevalent in these industries contribute to the increasing popularity of coffee. The adoption of coffee as a beverage not only alleviates work-related stress among employees but also addresses fatigue experienced by travelers. Consequently, there has been a notable surge in the demand for coffee machines, aimed at offering enhanced refreshments and beverages to cater to the needs of both employees and tourists.

Get an Exclusive Sample Copy of the Report at:-https://reportocean.com/industry-verticals/sample-request?report_id=UAE102

GCC Coffee Machine Market – By Country

The in-depth research report on the GCC Coffee Machine Market covers the market in the region?s member countries: Saudi Arabia, UAE, Qatar, Bahrain, Kuwait, and Oman. The UAE dominates the GCC Coffee Machine Market and is expected to maintain its dominance throughout the forecast period. It is propelled by shifts in consumer preferences towards coffee and the country’s fast-paced lifestyle. Additionally, the increasing interest among the youth in blended and flavored coffee has spurred a heightened demand for coffee machines. The presence of expatriates in the country has further accentuated the desire for coffee, with consumers incorporating it into their daily routines due to perceived health benefits, appealing taste, and stress-relieving qualities. The ongoing upswing in residential and industrial construction, particularly in new towns and cities, has been instrumental in magnifying the demand for coffee machines in the UAE. Moreover, the expansion of corporate offices, leisure facilities, entertainment venues, and tourist destinations creates an opportunity for increased demand for coffee machines in establishments like hotels, restaurants, and cafes, aligning with the evolving coffee preferences of individuals across diverse settings.

Competitive Landscape

Major players operating in GCC Coffee Machine Market include Panasonic, Philips, VMCOGULF, Black & Decker, Nestl?, Robert Bosch GmbH, Electrolux, De?Longhi, and ATCOWORLD. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

In December 2023 – Brazilian coffee chain, The Coffee, announced plans to make its debut in the Middle East in 2024, targeting the UAE.

Buy Now and Get a Discount of 30% @-https://reportocean.com/industry-verticals/sample-request?report_id=UAE102

In October 2023 – Emirati-led Coffee Desk expanded into the GCC, extending its influence from Europe to the UAE and beyond.

By Type of Machine

Drip Coffee Machine

Steam Coffee Machine

Capsule Coffee Machine

By Mode of Operation

Manual

Automatic

Semi-Automatic

By Sales Channel

Direct Sales

Wholesalers/Retailers

Online

By End User

Hotels

Restaurants & Caf?

Corporates & Institutions

Residential

Request free 30 minutes analyst call :-https://reportocean.com/industry-verticals/sample-request?report_id=UAE102

By Country

Saudi Arabia

UAE

Qatar

Bahrain

Kuwait

Oman

Key Questions Addressed in the Market Report:

What are the consumer buying behaviors and preferences within the market?

What are the essential success factors and considerations for entering or expanding within the market?

What potential risks and challenges do market participants face?

What investment opportunities exist, and what are the expected returns?

How is the market segmented, and how should target markets be identified?

What marketing and advertising strategies are employed by successful market players?

What are the barriers to market entry and the level of competitive intensity?

What are the forecasts and projections for the market’s future?

What strategies are recommended for market participants to achieve success?

Access Full Report Description, TOC, Table of Figure, Chart, etc.-https://reportocean.com/industry-verticals/sample-request?report_id=UAE102

(*Note: The historical years and projected period in the report are flexible and can be tailored upon request. Additionally, the scope of the published report is adjustable to meet specific requirements, and customized analyses based on particular geographies or countries can be included as part of the customization.)

About Report Ocean:

Report Ocean is a renowned provider of market research reports, offering high-quality insights to clients in various industries. Their goal is to assist clients in achieving their top line and bottom line objectives, thereby enhancing their market share in today’s competitive environment. As a trusted source for innovative market research reports, Report Ocean serves as a comprehensive solution for individuals, organizations, and industries seeking valuable market intelligence.

Contact Information:

Email:[email protected]

Address: 500 N Michigan Ave, Suite 600, Chicago, Illinois 60611, United States

Telephone: +1 888 212 3539 (US – Toll-Free)

For more information and to explore their offerings, visit their website at:https://www.reportocean.com/

Despite losing the positive momentum, the price of platinum is still trading well above its key support of $940, and a new artificial intelligence (AI) model has delivered potential price targets for silver’s pricier cousin in the next year, based on the available information and predictions.

Indeed, the price movements of the rarest precious metal and a popular commodity among investors are still working their way up to $1,000, unlike gold, which has consistently beaten its own record highs. However, some predictions suggest it might happen in 2025.

In this context, Llama 3.1, the recent AI model by Meta Platforms (NASDAQ: META), has offered insights that might help forecast platinum’s potential price performance in 2025 and provided specific platinum price range predictions from the standpoint of August 23.

As it happens, Meta’s AI platform has drawn upon available predictions from sources such as ANZ Research, WalletInvestor, UBS Bank (NYSE: UBS), and the World Platinum Investment Council (WPIC), concluding that the potential price range for platinum in 2025 could be between $900 and $1,200 per ounce.

For instance, in January this year, experts at the WPIC expressed their expectation that the platinum market “would remain undersupplied through at least 2028,” with average supply deficits of 550 koz between 2025 and 2008, supporting higher prices, as their report demonstrates.

Platinum price analysis

So, what is the price of platinum today? For now, it stands at $950.77, down 1.19% on the day, up 0.04% across the previous week, down 0.97% on its monthly chart, and declining 2.96% since the year’s turn. At the same time, the platinum price per gram at press time amounted to $33.85.

Ultimately, this precious metal might demonstrate mixed performance for now, but its limited supply could lead to continuous buying pressure, resulting in a steady price increase in 2025. That said, doing one’s own research is critical when investing significant amounts of money.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Finishing Week in Bearish Position

Today’s bearish behavior in the price of natural gas improves the chance that it may be heading to lower price levels before the retracement is complete. In addition, on the weekly time frame a bearish weekly reversal triggered this week, and the week is set to end with a bearish red candlestick pattern and a close near the lows for the week. This will set up a bearish signal below this week’s low. The next lower price target is at the 78.6% Fibonacci retracement at 1.97. A little lower is the 161.8% extended target for a small declining ABCD pattern at 1.95.

Rally Above Today’s High Will Show Strength

Nonetheless, natural gas found support today at 2.00 and it could continue to hold above that price level leading to a bullish reversal. A rally above today’s high of 2.07 would be a sign of strength with natural gas first heading towards the 20-Day MA, now at 2.11. If the 20-Day line can be recaptured natural gas will have a chance to proceed higher.

Resistance at Moving Averages

The next higher key resistance zone that would need to be recaptured is the recent swing high and last week’s high of 2.30. However, there are two moving averages nearby that need to be considered as well. The 200-Day MA is also at 2.30 and the 50-Day MA is at 2.305. Therefore, recapturing the 2.30 high and moving averages will put natural gas in a position to proceed higher. Until then, they may continue to identify an area of potential resistance.

For a look at all of today’s economic events, check out our economic calendar.

Gold Prices Stabilize After Decline

After reaching an all-time high of $2,531.60 on Tuesday, gold has retraced nearly 1% this week. The pullback is attributed to a stronger U.S. dollar and a rebound in Treasury yields, following an unexpected rise in the unemployment rate. Despite this, gold managed to inch higher on Friday, reflecting investor uncertainty and the potential for significant price moves depending on Powell’s remarks.

Fed’s Rate Cut Signals and Market Reactions

Market participants are closely monitoring Powell’s address at the Jackson Hole symposium for clues on the Fed’s future interest rate decisions. Traders have largely priced in a 76% probability of a 25-basis-point rate cut in September, with some speculating on a more substantial 50-basis-point reduction. This expectation has kept gold’s appeal intact, as a lower interest rate environment typically supports non-yielding assets like bullion.

However, there is concern that Powell’s speech could lead to a “buy the rumor, sell the fact” scenario, where gold could face selling pressure if the anticipated rate cut is confirmed without any surprises. This pattern may contribute to increased volatility and could limit gold’s upside potential in the near term.

Cautious Optimism Among Gold Traders

Tim Waterer, Chief Market Analyst at KCM Trade, noted, “Gold’s stay below $2,500 could be temporary, with the fundamentals still appearing favorable for the precious metal.” However, the market remains on edge as any unexpected remarks from Powell could trigger significant price moves. A more dovish stance from the Fed could boost gold, while a hawkish tone might extend the metal’s recent losses.

Market Forecast: Potential for Bullish Momentum, but Beware of Reversal

If Powell confirms the anticipated rate cut, gold prices may resume their upward trend, potentially challenging the $2,500 level again. However, traders should be mindful of a potentially bearish closing price reversal top on the weekly chart if gold ends the session lower today. Such a pattern could signal a deeper correction, making a bearish scenario likely if Powell suggests that the economy is stable enough to delay cuts. As a result, traders should prepare for a session with the potential for significant price swings depending on the Fed’s direction.

Technical Analysis