The dollar rose on Wednesday, achieving gains not achieved in 12 weeks at the 104.700 region, after the release of the US JOLTS job opportunities data, as it contributed to moving the markets, and the data came positive this time to motivate the Federal Reserve to tighten monetary policy for the coming period, meaning that it supports the dollar in the face of other assets that are negatively affected With the tightening monetary policy, which motivates the Fed towards more tightening, and that the economy is still in good health, as these comments reinforced the possibilities of raising US interest rates for the fourth time in a row, at a pace of 25 basis points, during the Federal Reserve meeting next month. As the issuance of treasury bonds was increasing, the emergence of the supply-side problem required much greater attention, as it cannot be overestimated that the US treasury market is the cornerstone of the entire financial system, and debt ceiling issues represent a much greater risk than is currently perceived, although previous concerns have proven to be marginal. Mostly, however, today’s circumstances are quite unique, so to be clear, the main problem relates to the potential consequences after the agreement. During periods when the debt ceiling is required to be extended, the Treasury’s cash balance for day-to-day operations tends to be at very low levels, and this is again the case today. Once an agreement is reached, the government must Issuing debts immediately in order to maintain their functions due to the constant imbalance in the fiscal deficit
For gold:
Gold rose today to touch the 1974 region and broke the downtrend on the 4-hour frame at the 1957 region. Of course, gold was affected by the economic situation, especially the US debt ceiling decision, which gave positivity to gold at the present time as a result of the lack of agreement on the required conditions, as is evident from the procrastination and postponement of the agreement. Okay, if we want to analyze this situation from On the banking side, all foreign central banks and major investment companies will be searching for a safer asset, and gold is the only result. This is why we will see upward pressure on gold, as gold is the only eligible asset and safe haven.
