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The New York Times (NYT.N) fell 1.3% in premarket trading after Trump sued the company for defamation.On September 16, the National Highway Traffic Safety Administration said on Tuesday that it would launch a so-called "preliminary assessment" on the issue that the electronic door handles of some Tesla Model Y models may lose power and fail. The investigation covers some 2021 Model Y models. A few days ago, an investigation exposed a number of accidents: after the vehicle lost power, the occupants were injured or died because they could not open the door. The National Highway Traffic Safety Administration said: "This investigation focuses on the operability of the vehicles external electronic door locks because in this case, there is currently no way to manually open the door. The agency will continue to monitor all reports involving being trapped when opening the door from the inside of the vehicle, and the Vehicle Defects Investigation Office will take further action as needed."September 16: Building materials trading volume reached 110,500 tons, a 6.04% decrease from the previous trading day. September 15: Building materials trading volume reached 117,600 tons, a 1.03% increase from the previous trading day. September 12: Building materials trading volume reached 116,400 tons, a 26.66% increase from the previous trading day. September 11: Building materials trading volume reached 91,900 tons, a 1.18% decrease from the previous trading day. September 10: Building materials trading volume reached 93,000 tons, a 8.28% decrease from the previous trading day. Last weeks average: Building materials trading volume was 10,308 tons.On September 16th, ING Bank stated in a research report that the US dollar is likely to remain relatively weak. The report pointed out that the US dollar started the week on a weak note, which may be partly related to the markets early positioning for the expected Federal Reserve interest rate cut later this week. ING Bank said that the weakening of the US dollar was also affected by the benign external environment. Global stock markets continued to rise slightly due to the dual effects of resilient business confidence and the expected decline in core borrowing costs. The report stated that this situation would typically prompt capital to flow into risky assets and non-US dollar markets, thereby reducing investor demand for the safe-haven currency, the US dollar. ING Bank said that the focus of the market on Tuesday will be US retail sales data.Spanish Economy Minister: We see average annual economic growth above 2% in the medium term.

Gold Price Prediction: XAU/USD bears anticipate a Fed rate hike near $1,660

Alina Haynes

Sep 21, 2022 14:35

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Wednesday's Asian session gold price (XAU/USD) reflects pre-Fed nervousness as bears flirt with $1,665 inside an immediate trading range. In addition to geopolitical concerns, the hawkish Fed bets create downward pressure on the metal. However, the market's consolidation prior to significant central bank announcements and the already-priced 0.75 basis point Fed rate hike appear to be testing the bears.

 

Reuters reported that the Federal Reserve began a two-day meeting on Tuesday, with rate futures traders pricing in an 83% chance of a 75 basis point raise and a 17% possibility of a 100 basis point tightening. The news adds to rising expectations that a positive surprise will weigh on the XAU/USD exchange rate. The previous day, global economist Nouriel Roubini endorsed metal bears and joined the band of supporters for the Fed's 1% rate hike.

 

In addition, the news of a sudden shutdown in the steel center of Tangshan due to China's zero covid policy recently rocked market confidence and boosted demand for the US dollar. In a similar vein might be the revelation that US Senators are seeking secondary sanctions on Russian oil.

 

In addition, the Asian Development Bank (ADB) lowered its growth predictions for emerging Asia in 2022 and 2023 on Wednesday, citing growing risks from increased central bank monetary tightening, the consequences from the conflict in Ukraine, and COVID-19 lockdowns in China. The news exerts a downward impact on mood and the XAU/USD exchange rate.

 

Regarding US statistics, the yields appeared to support DXY bulls on the back of generally positive US housing data. The nine-month decline in the US NAHB Housing Market Index preceded the August decrease in Building Permits to 1.517M from 1.61M expected and 1.68M previously. However, Housing Starts increased to 1.575 million compared to the market consensus of 1.445 million and previous readings of 1.404 million.

 

During the pre-Fed period of apprehension, the 2-year US Treasury yield reached its highest level in 15 years, while the 10-year yield reached its highest level in 11 years. Consequently, Wall Street's benchmarks closed in the negative, while the S&P 500 Futures remain undecided.

 

While the market's hesitation is mostly attributable to pre-Fed jitters, other central banks are also scheduled to influence the markets and gold prices. However, the focus will be on their ability to prevent recession while attempting to control inflation. If the Fed can persuade optimists of their capacity, a XAU/USD comeback cannot be counted out.


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