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On September 18th, Futures News reported that the National Development and Reform Commission, the National Energy Administration, and the National Mine Safety Administration jointly issued a notice to accelerate the stable production and supply of coal through multiple measures. The notice stated that all coal-producing provinces (autonomous regions) and coal enterprises should, under the premise of ensuring safety, make every effort to ensure stable coal production and supply, continuously strengthen monitoring and scheduling, optimize production organization, actively and steadily promote the resumption of production at coal mines, accelerate the acceptance of coal mines undergoing joint trial operation, and promote a steady recovery in coal production to provide strong support for economic growth and energy supply. At the same time, the notice also put forward requirements for the signing and fulfillment of medium- and long-term contracts for thermal coal, leveraging the supplementary role of imports, and promoting the construction of successor coal production capacity. Next, relevant departments will strengthen overall coordination, guide all coal-producing provinces (autonomous regions) and coal enterprises to promptly implement various work arrangements, adjust and improve policies and measures, release coal production capacity reserves in a timely manner, and make every effort to stabilize coal production and supply and promote stable market operation.September 18th - The State Council Information Office will hold a press conference on the theme of "Starting the 15th Five-Year Plan" at 10:00 AM on Sunday, September 20th, 2026. Shu Wei, spokesperson and deputy director of the State Administration for Market Regulation, and Yang Sheng, deputy director of the National Medical Products Administration, will introduce the relevant situation regarding promoting high-quality development of market regulation during the 15th Five-Year Plan period and answer questions from reporters.Reserve Bank of Australia Governor Bullock: Forward-looking indicators of the labor market remain stable.According to JLC Network Technologys calculations, as of the fifth working day on the 18th, the change rate was 10.67%, with the average price of reference oil types at $104.32 per barrel. Domestic gasoline and diesel prices increased by 620 yuan/ton. The price adjustment window for this round is at 24:00 on September 24th. 1. Shandong Local Refineries: Yesterday, market purchasing sentiment was generally weak. Local refineries gasoline and diesel sales did not reach production-sales balance. Coupled with the continued decline in international crude oil prices, under the dominance of negative factors, local refineries are expected to put downward pressure on gasoline and diesel prices by about 50 yuan/ton today in order to promote sales. 2. East China: On Friday, crude oil prices continued to fall, weakening support from news. It is expected that today, the prices of main refined oil products in East China will remain at a high level, with continued sales control policies, downstream wait-and-see sentiment, and a sluggish buying and selling atmosphere. 3. South China: On Friday, crude oil prices continued to fall, weakening support from positive news. It is expected that today, the prices of main gasoline and diesel products in South China will remain at a high level, with some gasoline prices possibly easing slightly. Sales companies will continue to control sales volume, and the buying and selling atmosphere will be stable. 4. North China: On Friday, oil prices continued to fall, and market caution intensified. It is expected that gasoline and diesel prices from major suppliers in North China will remain high and consolidate sideways, with some areas potentially showing a slight downward trend. The policy of controlling diesel supply and holding back sales will continue, with traders making small orders based on immediate needs, resulting in a weak trading atmosphere. 5. Central China: On Friday, crude oil prices continued to fall at the close, and news guidance weakened. It is expected that gasoline and diesel prices from major suppliers in Central China will remain stable today, with some gasoline transactions potentially showing a slight easing. Market caution intensified, and buying and selling remained weak and stable.The Peoples Bank of China (PBOC) announced today that it conducted 463.3 billion yuan of 7-day reverse repurchase operations, with both the bid and winning bids amounting to 463.3 billion yuan. The interest rate for the operations was 1.40%. In addition, it conducted 100 billion yuan of 14-day reverse repurchase operations using a fixed-quantity, interest-rate bidding method with multiple price levels.

Forecast for Gold: XAUUSD retreats from $1800 on rising US yields

Daniel Rogers

Aug 12, 2022 11:59

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While it had been trending upwards, gold's daily performance took a sour turn and it is now trading below $1800. During the American session, the XAUUSD reached a high of $1799 before turning down and heading below $1785.

 

Despite predictions of a 0.2% monthly increase, data released on Thursday indicated that the US Producer Price Index decreased by 0.5% in July, bringing the annual rate down to 9.8%. The Consumer Price Index did not move in July, contrary to predictions of a 0.2% increase, according to data released on Wednesday. The US currency fell because of the inflation rate going down.

 

Investors continue to count on a rate hike of 50 basis points or more from the Federal Reserve at their September meeting. U.S. rates have risen despite though a peak in US inflation is more likely, which is surprising. Both the US 10-year yield (now at 2.83%) and the 2-year yield (3.20%) are at their highest levels in nearly a week.

 

Increased US yields capped gold's gains. The inability of the XAU/USD pair to maintain a price over $1800 despite the recent US data has fueled skepticism that the rally will continue. Weekly support is found around $1774, and the immediate support is at $1785. Additional gains appear likely if the price of gold can consolidate over $1800.