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April 18 - According to the Wall Street Journal, US officials stated that the US military is preparing to board and seize Iranian-linked oil tankers and merchant ships in international waters in the coming days, expanding its naval operations beyond the Middle East. This plan comes as the Iranian military continues to tighten its control over the Strait of Hormuz, attacking several merchant ships on Saturday and declaring the waterway under "strict Iranian control." These developments have caught shipping companies off guard, just a day after the Iranian Foreign Minister declared the strait fully open to merchant ships, a statement praised by President Trump.Domestic News: 1. Two Chinese citizens tragically died in a car accident in the Russian Far East. 2. The Eastern Theater Command conducted joint combat readiness patrols in relevant sea and air areas of the East China Sea. 3. Rumors circulating online that "new environmental regulations have increased chicken farming costs, leading to higher egg prices" are false. 4. The 27th meeting of the China-Switzerland Joint Economic and Trade Committee was held in Bern, Switzerland. 5. Eight departments, including the Ministry of Public Security, stated that they will maintain a high-pressure stance against tax-related crimes such as issuing false invoices and tax evasion. 6. Seven e-commerce platforms expressed their sincere acceptance of the State Administration for Market Regulations penalties and their determination to fulfill their food safety responsibilities. 7. DeepSeek is reportedly launching its first external financing round? An executive from a large state-owned equity institution stated that the news is likely true, but they are currently unable to invest. International News: 1. The US Department of Energy will release the third batch of strategic petroleum reserves. 2. Progress has been made in a new round of dialogue between the Congolese government and anti-government forces. 3. Iraq stated that oil exports from all its oil fields will resume within days. 4. ECB Governing Council member Demarco stated that the ECB is not in a hurry to act and will receive more information in June. 5. According to the Wall Street Journal: The U.S. Department of Justice informed French law enforcement that it will not assist them in investigating Elon Musks social media platform X. 6. Iran Situation—① Iran: Due to the U.S. "breach of promise," it will control passage through the Strait of Hormuz until the war is completely over. ② Iran stated that it has not yet agreed to hold the next round of negotiations with the U.S. ③ Trump: The U.S. and Iran are in dialogue, and there will be news before the end of today. Iran cannot blackmail us by closing the strait again. ④ In contact with maritime intelligence: The Iranian Revolutionary Guard fired on oil tankers attempting to cross the Strait of Hormuz. ⑤ According to the Wall Street Journal: U.S. officials said that the U.S. military is prepared to board and seize ships linked to Iran in international waters in the coming days.According to the Wall Street Journal, U.S. officials say the U.S. military is prepared to board and seize Iranian-linked vessels and merchant ships in international waters in the coming days.On April 18, the Security Service of Ukraine (SBU) announced on social media that it had struck three Russian warships in Crimea. The SBU stated that the struck warships included the Russian Navys large landing ships "Yamal" and "Azov," as well as a warship of unidentified type. Other reports indicated that a Russian Project 21980 anti-sabotage boat "may have been hit."On April 18, Naghdi, an advisor to the commander-in-chief of Irans Islamic Revolutionary Guard Corps, said in an interview that Irans missile and drone production is still ongoing.

Gold Price Prediction: XAU/USD treads water below $1,700 due to pre-Fed jitters

Alina Haynes

Sep 20, 2022 14:34

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During Tuesday's early European morning, the gold price (XAU/USD) trades near $1,676 as it attempts to preserve Friday's rebound from the two-year low. In doing so, the bullion reflects the market's uneasiness preceding significant central bank statements, as well as trade and geopolitical concerns emerging from Russia and China.

 

Fears that the US dollar has already priced in the Fed's 0.75 percentage point rate hike and that there is no more room for the greenback to appreciate have recently impacted on the US currency. There may be a connection between the dismal US housing data and inflationary expectations and the anxieties.

 

The US NAHB Housing Market Index decreased for the ninth straight month to 46, compared to 48 anticipated and 49 previously. In spite of this, US inflation expectations, as measured by the 10-year breakeven inflation rate according to the St. Louis Federal Reserve (FRED) statistics, fell for the third consecutive day to a two-month low near 2.34 percent by the end of the North American trading session on Monday. Moreover, according to FRED statistics, the 5-year breakeven inflation rate plummeted to its lowest level since September 2021, at 2.44 percent. Concerns were raised regarding the market's unexpected reaction to the Fed's hawkish wagers.

 

On the other hand, the European Commission's willingness to use emergency power to prevent a supply crisis seems to have combined with hawkish statements from European Central Bank (ECB) policymakers to support the XAU/USD upward via a weaker USD. In addition, the relative quiet surrounding the US-China conflict over Taiwan and China's covid unlocks is beneficial for metal prices.

 

Nonetheless, multi-day high yields and general forecasts of increased interest rates in the face of economic slowdown worries appear to put the gold price under pressure. In addition, the news that the holdings of the SPDR Gold Trust, the largest gold-backed exchange-traded fund in the world, fell to 30,799,131 ounces on Monday, the lowest level since March 2020, adds to the negative catalysts for XAU/USD traders.

 

However, the second-tier US housing data may provide timely guidance prior to the FOMC meeting on Wednesday. Given the Fed's heightened expectations, any disappointment will not be taken lightly and may offer the XAU/USD with the much-needed boost from its yearly low.


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