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May 24th news, US President Trump said on May 23rd local time that if the mobile phones sold by Apple in the United States are made in foreign countries, they should face at least 25% tariffs. In an interview on the same day, US Treasury Secretary Bessant said that President Trumps original intention was to bring precision manufacturing back to the United States with the help of Apples relocation of the industrial chain. In this regard, some American experts said that moving Apple mobile phones back to the United States for production is "unrealistic like a fairy tale", and Apple will pay a high cost, and the price of its products will also rise. Apple phones produced in the United States will be sold for US$3,500, or about RMB 25,100. Compared with spending huge sums of money to move production lines back to the United States, Apple hopes to increase its investment in the field of artificial intelligence.Bank of Canada Governor Macklem: The transmission effect of tariffs in price data has not yet been observed.Bank of Canada Governor Macklem: The top priority is to reach a trade agreement with the United States.On May 24, Russian Ambassador to the UK Andrei Kelin said in an interview with the Russian Satellite News Agency that British society is increasingly tired of the Ukrainian conflict and British citizens do not want their country to accept Ukrainian refugees. In response to the question of whether British society is tired of the Ukrainian issue, Kelin said: "British society is tired of the Ukrainian issue, although it is not in the majority. If a year ago we were still talking about 80% of British people supporting their governments actions in Ukraine, now this proportion is seriously declining. I dont want to reveal specific numbers because they fluctuate frequently, but the trend is obvious. This is a decline in public support. More and more people are talking about the British people being tired of Ukrainian refugees and not wanting to take them in anymore."Russian Ministry of Defense: Russian troops occupied Stopchi and Otradny in eastern Ukraine.

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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