#Focus booster reporting driver#

gold futures traded at $1,811.40/oz on Wednesday.Ĭhina's consumer price index in July reached a two-year high as pork prices rebounded, according to official data released Wednesday. 'The main conclusion is that in the current environment of tightening policy and persistent recession concerns the tactical direction of gold will be determined by shifts in Fed priority function between inflation fight and growth support,' the firm added. 'While we expected nominal rates to increase on the back of Fed hikes we did not expect inflation expectations to fall so much after failure of the transitory narrative and high persistent inflation surprises,' Goldman wrote in a note to clients.

#Focus booster reporting driver#

The firm said it came to that target after looking at how gold traded over the last 20 years, noting that recession risks around tightening cycles was previously a more important driver than real rates. The new forecasts are down from a prior 12-month outlook of $2,500/toz. The firm now sees gold averaging $1850/toz over the next three months, before increasing slightly to $1,950/toz for the remainder of the year. Goldman Sachs has cut its gold forecast, saying it overestimated how much recession fears would drive prices. Salesforce was one of the best performers in the Dow, climbing 3.5%. Major tech stocks outpaced the broader market on Wednesday, with Facebook parent Meta rising 5.8% and Netflix gaining more than 6%. If we continue to see declining inflation prints, the Federal Reserve may start to slow the pace of monetary tightening,' said Nancy Davis, founder of Quadratic Capital Management.

'The deceleration in the Consumer Price Index for July is likely a big relief for the Federal Reserve, especially since the Fed insisted that inflation was transitory, which was incorrect. The Federal Reserve will weigh the report, along with other key economic data, ahead of its September meeting, where it is slated to hike interest rates again. Economists surveyed by Dow Jones were expecting increases of 8.7% and 0.2%, respectively.Ĭore inflation, which strips out volatile food and energy prices, also saw a smaller-than-expected increase. The headline consumer price index for July rose 8.5% year over year and was flat compared with June. The Nasdaq Composite rose 2.89% to 12,854.80 for its best close since late April. The S&P 500 gained 2.13% to 4,210.24, its highest level since early May. The Dow Jones Industrial Average jumped 535.10 points, or 1.63%, to close at 33,309.51. Stocks rose sharply on Wednesday after a key inflation reading showed a better-than-expected slowdown for rising prices.