Daily Price Outlook

Gold price (XAU/USD) has been unable to halt its ongoing declining streak and continues to face selling pressure for the second consecutive day this Wednesday. It has slipped closer to the monthly low reached yesterday, currently hovering around the $1,910 level during the Asian trading session. However, the bullish bias in the US Dollar was seen as one of the key factor that has been pushing the gold price down. Simultaneously, the looming risks of an impending recession are playing a role in liiting the of losses for XAU/USD. Moreover, investors appear cautious about making strong bids ahead of the upcoming release of the US Consumer Price Index (CPI) data.

US Dollar Gains Momentum, Pressuring Gold Demand

The broad-based US dollar has been gaining momentum after some ups and downs on Tuesday, and this is putting pressure on the demand for gold. It is worth noting that many people believe that the Federal Reserve will stick to its tougher stance on interest rates, which is pushing up US Treasury bond yields and helping the dollar. Many in the market think the Fed will keep interest rates higher for a while and are expecting one more 0.25% increase before the year ends. This confidence in the Fed's approach is boosting the dollar and making gold less attractive to investors.

However, these bets were strengthened by positive US economic data from last week, indicating a strong economy. Furthermore, the slow decrease in inflation means the Fed might keep tightening policies. Thereby, investors keeping a close eye on the US Consumer Price Index (CPI) numbers coming out soon.

Impact of Inflation and Market Sentiment on Gold and the US Dollar

Although, if inflation continues to stay high, it could push the US dollar even higher, possibly reaching a six-month high. This, in turn, would likely put more downward pressure on gold prices. However, if there are worries about China's economy and higher borrowing costs, gold prices might not fall as fast.

Investors are a worried about the economic situation in China and are being careful with riskier investments. So, while the US dollar could rise, gold might not fall as fast if the overall mood in the market remains uncertain.

ECB Interest Rate Decision and Its Potential Impact on Gold Prices

Apart from this, the European Central Bank (ECB) is set to make an interest rate decision on Thursday. This could shake things up for gold prices. People are predicting that the ECB will likely keep their main interest rate at 4.25% because inflation is not surging, and there's worry about the economy slowing down. Therefore, we can expect some significant moves in the gold market after the ECB's decision.

GOLD(XAU/USD) - Technical Analysis

The gold price has decisively breached the $1,913.15 mark, evidenced by its closure below this level yesterday and has embarked on a downward trajectory today. Its next anticipated target stands at $1,890.00. The chart manifests a "head and shoulders" pattern, signaling potential further drops with subsequent goals pinpointed at $1,873.50.

In light of this, we anticipate continued declines in the forthcoming sessions. However, it's pivotal to note that if the gold price surpasses the $1,913.15 and subsequently the $1,916.80 thresholds, this could negate the bearish outlook, prompting a potential intraday recovery. For today, we foresee the gold price oscillating between a support level of $1,875.00 and a resistance barrier at $1,920.00.

Daily Price Outlook

Despite the European Central Bank (ECB) expects inflation in the Eurozone to remain over 3% next year, supporting another rate hike on Thursday, the EUR/USD currency pair failed to stop its downward rally and dropped around 1.0735, down 0.14% on the day. However, the reason for its downward rally can be attributed to multiple factors including the bullish US dollar and weaker-than-expected German industrial figures. In the meantime, the upside of EUR/USD might be limited as market players prefer to wait on the sidelines ahead of the US Consumer Price Index (CPI) data on Wednesday.

Eurozone Industrial Production Declines in July, Raising Concerns of Manufacturing Slowdown

According to official data, the Eurozone's industrial production experienced a larger decline than expected in July. This suggests that the manufacturing sector's recovery is slowing down. Industrial output fell by 1.1% in July compared to the previous month, worse than the anticipated decrease of 0.7%, and in contrast to a 0.4% increase seen in June. On an annual basis, industrial production declined by 2.2% in July, compared to a 1.1% decrease in June, well below the expected 0.3% drop. Despite these disappointing numbers, the Euro (EUR) remained relatively steady against the US Dollar (USD), trading at about 1.0735, showing only a 0.14% decrease for the day.

ECB's Inflation Expectations and Potential Impact on Interest Rates

Furthermore, the European Central Bank (ECB) expects inflation in the Eurozone to stay above 3% next year. This raises the probability of the ECB raising interest rates for the tenth time in a row at its upcoming meeting on Thursday. Notably, the market has had mixed predictions about the ECB's interest rate decision, with around 40% of investors expecting a rate hike this week. If the unconfirmed ECB information is accurate, it could lead to another rate increase announcement. Therefore, this potential move might strengthen the Euro against the US Dollar (USD) and provide some support for the EUR/USD currency pair to limit its deeper losses.

US Dollar Strengthens on Federal Reserve's Interest Rate Outlook

On the US front, the overall value of the US dollar has been going up and down recently, but it's currently on an upward trend. However, the reason for this is that many people believe the Federal Reserve, the US central bank, will continue with its tough stance on interest rates. This stance is making US Treasury bond yields go up, which is good for the dollar. In the meantime, the market expects the Fed to keep interest rates higher for a while and predict one more 0.25% increase before the year is over. This confidence in the Fed's plan is making the dollar more appealing and pushing the EUR/USD currency pair down. (edited)

EUR/USD - Technical Analysis

The EUR/USD currency pair concluded the previous session on a notably positive note, probing the resistance of the evident bearish channel showcased on the analytical chart. Notably, it has sustained below this resistance, commencing today with a bearish inclination, suggesting a potential continuation of the prevailing downtrend. The subsequent primary objective is set at 1.0635.

The 50-day Exponential Moving Average (EMA50) aligns with the aforementioned resistance, amplifying its robustness. Concurrently, the stochastic oscillator displays a clear wane in its positive momentum, reinforcing the prognosis for a decline in upcoming sessions.

Given these dynamics, the bearish trajectory is anticipated in both intraday and short-term scenarios, unless there's a breach beyond 1.0785 that remains sustained. Today's trading spectrum is projected to span from a support at 1.0660 to a resistance ceiling of 1.0810.

Daily Price Outlook

The GBP/USD currency pair failed to extend its previous day's gains and lost some of its traction in response to disappointing UK GDP data. As of now, the pair is down 0.14% on the day, trading at 1.2466. Furthermore, the ongoing strength of the US dollar has also played a major role in undermining the GBP/USD currency pair. Moreover, the GBP/USD currency pair faced some additional downward pressure due to expectations that the Bank of England (BoE) is approaching the conclusion of its rate-hiking cycle.

UK Economic Data and Its Impact on GBP/USD

According to the latest data from the Office for National Statistics (ONS), the UK's economy contracted by 0.5% in July, following a 0.5% growth in June. This was worse than the expected 0.2% decline. On another note, the Index of Services for July showed a 0.1% increase in a 3-month period, beating the estimated -0.1% and matching the previous month's performance.

As a result of this news, the GBP/USD pair is experiencing further losses. Currently, it's down 0.14% for the day, trading at 1.2466 marks.

On the other side, the UK's industrial sector slowed in July. Manufacturing output fell 0.8% MoM, beating expectations, but total industrial output was down 0.7%. Annually, manufacturing production exceeded expectations at 3.0%, while total industrial output slightly missed predictions at 0.4%. The UK's goods trade balance improved to GBP-14.064 billion, and the total trade balance (non-EU) was GBP-2.361 billion for July, an improvement from June.

Therefore, the information of a slowing UK industrial sector, despite some positive aspects, put downward pressure on the GBP/USD pair, contributing to its decline.

Fed's Policy Outlook and Its Impact on GBP/USD

Across the ocean, the Federal Reserve (Fed) is expected to take a break at its upcoming meeting, but there's still a chance of one more 0.25% rate hike this year. Recent positive US economic data suggests a strong economy and ongoing inflation could support higher rates. However, the focus is now on the US CPI report for hints on future rate hikes. Meanwhile, the possibility of higher US rates keeps Treasury bond yields up, benefiting the safe-haven US Dollar. This, coupled with market caution, limits significant gains for the GBP/USD pair.

GBP/USD - Technical Analysis

The GBP/USD currency pair has decisively breached the 1.2505 mark, evidenced by its recent daily close beneath this threshold. This move aligns with the bearish trajectory outlined within the analytical chart's bearish channel. Subsequent targets are delineated at 1.2400, extending further to 1.2310.

Given this context, a bearish orientation is anticipated for today's trading session, bolstered by the negative influence exerted by the 50-day Exponential Moving Average (EMA50). However, it's crucial to note that any ascent past the 1.2505 level, if sustained, might negate the current bearish perspective, paving the way for potential recuperative actions. For today, the projected trading spectrum spans from a support boundary of 1.2390 to a resistance cap of 1.2540.

Daily Price Outlook

Gold's price (XAU/USD) has been steadily climbing, recently breaking through the $1,923 mark. It's been in the green for two days in a row, though not with tremendous strength. Traders are awaiting the release of the latest US consumer inflation data scheduled for Wednesday. However, the uptick in gold prices was due to the weakening US Dollar, which makes gold more attractive as an alternative investment. Moving on, the upside seems limited ahead of the US CPI on Wednesday and Thursday's ECB policy meeting.

Impact of USD and Economic Data on Gold Prices

Investors are keeping a close eye on the August US Consumer Price Index (CPI) data as it reveals inflation trends. However, the Federal Reserve (Fed) may stick to its current policies because of low inflation and a weak job market, which could make gold less appealing. On the other hand, a strong US dollar can manage higher interest rates and positive economic news. There's a chance the Fed might raise rates by 25 basis points, possibly in November or December, which could limit gold's upward momentum.

Meanwhile, the positive US economic data from last week suggests a strong economy, which means the Federal Reserve (Fed) can maintain higher interest rates for an extended period. This confident stance supports higher US Treasury bond yields and pushed the US Dollar (USD) to a six-month high last week. The positive US economic data indicating a strong economy has led to expectations of the Federal Reserve maintaining higher interest rates, boosting US Treasury bond yields and the US Dollar (USD). However, recent profit-taking and a weaker USD have offered some support to the Gold price, which tends to perform better in a weaker dollar environment.

Gold's Safe-Haven Appeal Amid Economic Worries

Another factor that has been contributing to the rising appeal of gold is the risk-off sentiment in stock markets. The ongoing concerns surrounding China's economic challenges and the increasing costs of borrowing have encouraged many investors to seek the safety of gold. Moving on, traders are taking a cautious approach as they await the release of the US Consumer Price Index (CPI) report and the upcoming European Central Bank (ECB) meeting.

On the flip side, the ECB faces a tough decision of either raising interest rates due to high inflation or holding off due to a weakening Euro Zone economy, and this uncertainity is adding to gold's appeal. Therefore, gold is benefiting from investor caution amid economic uncertainties in both China and Europe.

GOLD(XAU/USD) - Technical Analysis

Gold's price, currently hovering around $1,929.00, struggles to maintain a consistent breach of this level, showcasing a bearish pullback that leans on the intraday bullish trend line evident on the chart. Concurrently, the stochastic indicator is hinting at renewed positive momentum, potentially propelling the gold price to resume its upward trajectory and possibly exceed the aforementioned level, aiming for a subsequent primary target at $1,945.20.

In light of these observations, we anticipate a continuation of the bullish trend in the near term. However, it's essential to recognize that a breach below the $1,919.80 level, followed by a decline to $1,913.15, could deter the anticipated upward movement, pivoting the gold price towards a downtrend. For today, we project the gold price to oscillate between a support level of $1,913.00 and a resistance at $1,940.00.

Daily Price Outlook

The USD/JPY currency pair extended its upward rally and attracted more buying interest, pushing it above the recent levels. However, this rally can be linked to the increased demand for the US Dollar, which is providing strong support to the USD/JPY pair. It's worth noting that the upward movement is mainly driven by the emergence of USD buying, acting as a significant tailwind for the pair. Across the ocean, the worries about intervention and a cautious market mood support the Japanese yen (JPY) and limit gains for the USD/JPY pair.

USD/JPY Reacts to BoJ Governor's Comments and Policy Outlook

The USD/JPY pair initially reacted positively to Bank of Japan (BoJ) Governor Kazuo Ueda's hawkish comments, but this optimism faded quickly. Many in the market believe that the Japanese central bank will maintain its current policies until next summer. Ueda mentioned the option of ending negative interest rates if he's confident in rising prices and wages. However, Hiroshige Seko of Japan's ruling party prefers loose monetary policies. Seko noted that Ueda believes policy changes will only happen after reaching the 2% inflation target. This eases concerns about an immediate BoJ policy shift, and, coupled with some US Dollar (USD) buying, supports the USD/JPY pair.

Factors Influencing USD/JPY Pair's Direction

Apart from this, the Federal Reserve's potential future tightening of policies is boosting US Treasury bond yields and increasing demand for the US dollar (USD). Although the Fed is expected to pause its rate hikes in September, markets still think there might be one more 25 bps increase in 2023. The strong US economic data and persistent inflation suggest the Fed may maintain higher interest rates. Moving on, the upcoming US CPI report on Wednesday will be closely watched for clues on the Fed's future rate hike plans, influencing the USD/JPY pair's near-term direction.

Hence, this news is likely to exert upward pressure on the USD/JPY currency pair. The Federal Reserve's potential tightening of policies, coupled with expectations of another rate increase in 2023, is boosting demand for the US dollar (USD). (edited)

USD/JPY - Technical Analysis

The USD/JPY pair exhibited pronounced bearish activity yesterday, breaking through the 146.55 mark to touch 145.90. However, it has since oscillated around the initial level, influenced by the fading positive momentum of the stochastic indicator. Additionally, the EMA50 exerts downward pressure on the price.

Given these dynamics, we are inclined to forecast continued bearish tendencies in forthcoming sessions. It's imperative to note that our subsequent primary target stands at 145.55. Any breach beyond 146.90 would negate the anticipated decline, potentially realigning the pair with its primary bullish trajectory. Today, we project a trading range between a support level of 145.80 and resistance at 147.40.

Daily Price Outlook

The AUD/USD currency pair failed to prolong its previous upward rally and declined during Tuesday's Asian session, moving away from the four-day high it reached around 0.6450 on Monday. However, this decline was mainly due to increased demand for the US dollar. It is worth noting that investors are betting that the Federal Reserve might raise interest rates again in 2023. This coupled with a cautious market sentiment is bolstering the US dollar. Furthermore, China's economic worries and disappointing Australian consumer confidence data are also exerting downward pressure on the Australian dollar and contributes to the AUD/USD pair.

US Dollar Rebounds, Puts Pressure on AUD/USD Pair

The broad-based US dollar has recovered after a recent drop and seems to have paused its retreat from a six-month high, which is putting pressure on the AUD/USD pair. However, This is mainly because the Federal Reserve is expected to continue tightening its monetary policy, which keeps US Treasury bond yields high and supports the USD. Furthermore, the risk-off mood in the market is making the Greenback more appealing as a safe-haven currency, adding to the strain on the riskier Australian Dollar.

Investors believe the Fed will maintain higher interest rates, with some even expecting another 25 bps increase by year-end. In the meantime, the positive US economic data and reports of officials leaning toward rate hikes contribute to concerns about rising borrowing costs and dampen attraction for riskier assets like AUD.

Challenges for AUD/USD Amid Poor Aussie Confidence Data

Moreover, the AUD/USD pair faced additional pressure due to disappointing Australian consumer confidence data. In September, the Westpac - Melbourne Institute Consumer Confidence Index plunged to a dismal 79.7. This index has remained below the 100 mark since March 2022, the longest such period since the early 1990s recession. This decline comes amid growing worries about China's worsening economic conditions, suggesting the Australian dollar could face more downside risks as a China-related currency.

Traders may choose to stay cautious as they await the upcoming US consumer inflation figures set to release on Wednesday. These numbers will likely impact market expectations regarding the Federal Reserve's future rate hikes, influencing demand for the US dollar and potentially driving the AUD/USD pair's direction.

AUD/USD - Technical Analysis

The AUD/USD pair remains steadfast, maintaining its position above the 0.6400 mark, thus reinforcing the prevailing bullish outlook. The next primary target in sight stands at 0.6545. The current negative trajectory of the Stochastic indicator may temporarily impede upward momentum.

However, we anticipate a shift towards a positive momentum that could bolster the pair towards the aforementioned targets. It's crucial to note that sustaining a position above 0.6400 is pivotal for the continuation of this bullish trajectory. For today, we forecast the pair to trade within a range, with support at 0.6390 and resistance capped at 0.6490.

Daily Price Outlook

During the Asian trading session on Monday, the GBP/USD currency pair managed to recover from a three-month low. However, the recovery was driven by a modest decline in the US dollar, which had previously reached a multi-month high. The British pound gained strength against the US dollar because the dollar weakened slightly, prompting traders to place strong position.

Hawkish BoJ Comments and Mixed Chinese Data Impacting GBP/USD

It is worth noting that the Bank of Japan's (BoJ) Governor Kazuo Ueda made some hawkish remarks over the weekend, boosting demand for the Japanese Yen (JPY) and putting pressure on the US Dollar (USD). Additionally, a positive vibe in the stock markets pulled the safe-haven US dollar away from its highest level since March, which supported the GBP/USD pair.

Over the weekend, data showed that China's consumer prices rose in August, and the Producer Price Index decline slowed down. This suggests that China's economy might be stabilizing after a rough patch this year. Investors are also hopeful for more stimulus from China. However, some indicators show that China's manufacturing is still struggling, and the growth in the services sector is slowing down. This mixed economic picture could temper market optimism.

Hence, the hawkish BoJ comments boosted the Japanese Yen and pressured the US Dollar, aiding the GBP/USD pair.

Central Bank Actions Impacting GBP/USD

Across the ocean, the belief that the Federal Reserve (Fed) will stick to its tougher stance is likely to restrain the US Dollar's fall and limit GBP/USD gains. Market players think the Fed will keep interest rates high for a while. Some officials even suggest raising rates more than needed, boosting US Treasury bond yields and supporting the USD.

Meanwhile, Bank of England (BoE) Governor Andrew Bailey warned about ongoing high inflation, hinting at more rate hikes. However, he also hinted that the BoE might be close to stopping rate hikes. This may hinder any significant rise in GBP/USD, at least for now.

GBP/USD - Technical Analysis

The GBP/USD pair is revisiting the 1.2505 mark. Recent higher lows observed indicate a potential ascent in the upcoming trading sessions. If the pair exceeds the aforementioned level, it is poised to approach 1.2625.

Today's outlook is inclined towards a bullish trend, bolstered by favorable indications from the stochastic oscillator. It's important to note, however, that if the pair cannot surpass the 1.2505 threshold, it might revert to its predominant bearish trajectory with an aim towards 1.2395.

We project the GBP/USD's trading spectrum for the day to span between a 1.2430 support and a 1.2590 resistance. The day's anticipated trend is bullish.

Daily Price Outlook

The Gold price (XAU/USD) has successfully recovered from its losses of the previous week and is currently trading around $1,930. However, this rebound is mainly attributed to the weakening of the US Dollar, which makes gold more appealing. However, the USD's decline is linked to hints from Federal Reserve (Fed) policymakers suggesting they won't raise interest rates in the upcoming September meeting. In the meantime, the ongoing worries about China's economic slowdown were seen as one of the key factors that kept the lid on any additional gains in the Gold price.

US Dollar's Impact on Gold Prices and Upcoming Economic Factors

The broad-based US dollar lost some of its traction and faced losses during the Asian trading session on Monday. However, the reason for its decline can be attributed to the prospects that Federal Reserve policymakers won't raise interest rates in the upcoming September meeting. Thus, the bearish US dollar was seen as one of the key factors that boosted the Gold price, at least for the time being.

However, the losses in the US dollar could be short-lived, thanks to consistently positive economic news from the United States. Investors are closely watching the release of the Consumer Price Index (CPI) data for August, scheduled for Wednesday. This data will provide valuable insights into the country's inflation situation.

At the same time, investors are also considering the possibility of the Federal Reserve (Fed) raising interest rates by 25 basis points in either their November or December meetings. This "hawkish" stance could provide some support for the price of precious metals like gold.

It's also important to mention that Janet Yellen, the US Treasury Secretary, believes that the US can manage inflation without hurting job growth. She thinks everything is pointing towards lower inflation. On top of that, Austan Goolsbee, the President of the Chicago Fed, talked about the Fed's goal. They want to steer the economy onto a "golden path," which means finding a careful balance where inflation goes down but doesn't lead to a recession. This news may have eased concerns, possibly lowering gold prices as it suggests inflation control without a recession.

China's CPI Report Impacts Gold, Eyes on Beijing's Growth Goal

Across the ocean, the release of China's weaker-than-expected Consumer Price Index (CPI) for August may have had a negative impact on gold prices. The report, which came out on a Saturday, revealed a modest 0.1% annual increase, falling short of the expected 0.2% rise. However, it's worth noting that this represented an improvement compared to the previous month's -0.3% figure.

Looking forward, market traders will keep thier eye on the hurdles faced by Chinese authorities in their efforts to implement the monetary and fiscal actions needed to reach Beijing's target of a 5% GDP growth rate this year. Hence, these efforts could influence not only China's economic stability but also global financial markets, including the price of gold.

GOLD(XAU/USD) - Technical Analysis

The price of gold experienced a notable decline upon encountering a robust resistance at $1,929.00. However, today's market opening indicates an upward trajectory, as the commodity seeks to resume its optimistic inclinations. A successful breach of the aforementioned resistance would pave the way for an ascent towards a primary target of $1,945.20.

Given these dynamics, our projection maintains a bullish orientation for the foreseeable future. The stochastic oscillator is poised for a favorable convergence, which further accentuates the optimistic outlook. It's essential to highlight that a breach below $1,913.15 would negate this bullish sentiment, potentially initiating a downward reversal in price. For today's trading, we anticipate gold to fluctuate within a range bounded by a support at $1,913.00 and resistance at $1,940.00.

Daily Price Outlook

During the early European session on Monday, the EUR/USD currency pair is experiencing an uptick, hovering around 1.0730. This upward movement can be attributed to a weakening US Dollar (USD). The US Dollar Index (DXY) is currently declining, standing at approximately 104.60, despite robust performance in US Treasury yields.

Although, the US dollar is expected to maintain its strength, thanks to previously released US economic data. Market participants are awaiting the release of August's US Consumer Price Index (CPI) data scheduled for Wednesday, as it holds the potential to provide useful insights into inflation trends, which in turn can influence trading decisions involving the EUR/USD pair.

Impact of US Economic Policies on EUR/USD Currency Pair

It's worth noting that US Treasury Secretary Janet Yellen expressed confidence in the US's ability to manage inflation without harming jobs. She also mentioned that inflation is going down. This is why, Investors are expecting the Fed to raise interest rates by 25 basis points in either November or December. This could limit the EUR/USD currency pair's potential to go up.

Moreover, Fed Governor Christopher Waller mentioned that they can make changes to interest rates based on how the economy is doing. On a related note, Fed Boston President Susan Collins has cautioned against being too strict with monetary policy and advocates for a careful approach. Meanwhile, Chicago Fed President Austan Goolsbee recently talked about the Fed's goal of reaching a "golden path" where inflation decreases without causing a recession.

Thus, the potential interest rate hikes in the US could limit the upward potential of the EUR/USD currency pair by underpinning the US dollar.

ECB's Rate Expectations and China's CPI Impact on EUR/USD Sentiment

Across the ocean, the European Central Bank (ECB) is expected to keep interest rates steady in their upcoming Thursday meeting. According to recent figures from Germany, consumer prices in August closely matched expectations, with a 6.4% increase compared to the previous year. The core price index also held steady, showing a 6.1% rise.

Another factor impacting the Euro's performance was China's recent release of their Consumer Price Index (CPI) for August. The report revealed a modest 0.1% increase in prices compared to the previous year, falling short of the anticipated 0.2% rise. However, it's worth noting that this is an improvement from the previous month when prices actually dropped by -0.3%.

Traders are closely watching China's economic situation, looking for clues about the challenges that Chinese authorities are dealing with. The market anticipates that Beijing will introduce more monetary and fiscal measures to help achieve their goal of reaching a 5% GDP growth rate for the current year.

EUR/USD - Technical Analysis

The EUR/USD pair has initiated today with an upward trajectory, distancing itself from the 1.0700 threshold. Current indications from the stochastic oscillator suggest a positive convergence, leading us to anticipate potential gains in the forthcoming sessions. The immediate target is set at 1.0785; a breach of this level could further propel the pair towards the 1.0880 region in the short term.

It's pivotal to mention that if the pair struggles to surpass 1.0785, it may revert to its primary bearish course. Conversely, a descent below the 1.0700 mark would nullify our projected bullish outlook, inducing a decline. For today's trading, we forecast the EUR/USD to oscillate between a support level of 1.0650 and a resistance at 1.0810.

Daily Price Outlook

The global market sentiment unable to stop its bearish trend and remains negative, thanks to the ongoing worries about the Federal Reserve's hawkish stance and issues in China. Notably, the S&P 500 Futures have been declining for four consecutive days, currently sitting at their lowest level in a week at around 4,468.

Meanwhile, the US 10-year Treasury bond yields hover around 4.30%, near the recent high of 4.29%, while the two-year bond yields have dropped from their weekly peak to 5.01%, marking their first daily loss in four days. Hence, the market is facing a bearish trend, with no signs of improvement due to fears of slower economic growth and recession in China.

Moving on, traders are keeping an eye on China's foreign trade data for August and speeches from several Federal Reserve officials. However, worries about economic slowdowns in China, the Eurozone, and the UK are conflicting with concerns about a soft landing in the US. This contrast is maintaining a risk-off sentiment in the market.

Global Economic Concerns Impact Investor Sentiment

It is worth noting that the recently released disappointing Caixin Services PMI in China, coupled with uncertainties surrounding China's stimulus efforts, have heightened concerns about a potential economic downturn in Beijing. Furthermore, escalating tensions between the United States and China regarding trade and Taiwan are further fueling the risk off sentiment in the market.

Meanwhile, the economic reports from the Eurozone and the United Kingdom indicate a downbeat economic outlook. This is making investors even more cautious. Thus, these factors are contributing in risk-off sentiment in the market, with investors opting for lower-risk options.

China's Economic Measures and Global Tensions Impact Investor Confidence

As we all are well aware China has been taking steps to boost its struggling economy after facing challenges during the pandemic. However, they have implemented various policies, and more are expected soon. Nevertheless, investor confidence is still low because of worries about China's weakening economy and the ongoing trade disputes with the United States.

These concerns might reduce the demand for precious metals. In the meantime, the G20 leaders' summit is happening this Saturday in New Delhi. President Joe Biden will attend, but Chinese President Xi Jinping won't be there. This exacerbates the already damaging relationship between the two superpowers countries.

Strong US Economic Data Drives Dollar Confidence

The US Dollar Index (DXY), measuring the US dollar's performance against other major currencies, is hovering around 104.90, near its highest level since April. This is driven by positive news about the US economy, including lower-than-expected Initial Jobless Claims at 216K (compared to an expected 234K) and an increase in Unit Labor Costs to 2.2% for the second quarter, in line with expectations. Thereby, investors expect a more hawkish approach from the US Federal Reserve with expected interest rate hikes of 25 basis points in November and December. This bolstering market sentiment and confidence in the US economy.

S&P500 (SPX) - Technical Analysis

The technical outlook for the S&P 500 presents a captivating picture. While there have been slight variations akin to light rain, the $4400 level captures my focus. A detailed look indicates the 50-day exponential moving average providing solid resistance around $4475.

What stands out is the affirmation from candle closures below this mark, indicating a potential downward trend. Examining the technical metrics, both the relative strength index and the moving average convergence divergence indicators remain stable in the sell zone, hinting chances of a bearish movement.

Furthermore, the S&P 500 showcases the potential to target the $4390 mark. Achieving this could set the stage for the next target at $4350. On the flip side, bullish cross above $4475 might push the index towards the $4500 or $4545 areas. Given these insights, it's wise to stay alert and consider a selling around the $4475 mark for the day.