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On Thursday, June 18, the Hang Seng Index opened down 166.97 points, or 0.69%, at 24,145.19; the Hang Seng Tech Index opened down 41.0 points, or 0.88%, at 4,628.07; the H-share Index opened down 71.31 points, or 0.88%, at 8,072.72; and the Red Chip Index opened down 22.5 points, or 0.54%, at 4,149.33.The Peoples Bank of China (PBOC) announced today that it conducted 248 billion yuan of 7-day reverse repurchase operations, with both the bid and winning bids amounting to 248 billion yuan. The operating rate was 1.40%, unchanged from the previous rate.Hong Kong stocks opened lower, with the Hang Seng Index down 0.69% and the Tech Index down 0.88%. MINIMAX-W (00100.HK) rose more than 3.8%, Pop Mart (09992.HK) fell more than 3.3%, and NetEase (09999.HK) fell more than 2.8%.Gold prices rose in early Asian trading on June 18 after the Federal Reserve kept interest rates unchanged overnight. DBS Group strategist Sherilyn Chew stated that while peace efforts between the US and Iran since the beginning of the week have supported gold prices, partially offsetting the impact of the Feds hints at a rate hike later this year, gold prices have tended to trade within a narrow range. This suggests that the recent rally is largely event-driven rather than supported by macroeconomic changes. However, central bank gold purchases are expected to remain strong, and market surveys indicate continued demand for increased gold reserves over the next year, which should provide medium-term support for gold prices. DBS Group expects gold prices to fluctuate within a range in the short term, and further gains are possible if bond yields decline.Hang Seng Index futures opened down 0.14% at 24,228 points, a discount of 82 points.

Gold Price Prediction: XAU/USD will fall to $1,900 due to a strengthening US Dollar and mixed investor attitude

Alina Haynes

Jan 31, 2023 16:09

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In advance of Tuesday's European session, the gold market (XAU/USD) maintains its decline as sellers hit a crucial support level near $1,920. In doing so, the precious metal reverses the mid-Asian session retracement off the stated trend line support.

 

The metal's weakness may be attributable to the contradictory information contained in International Monetary Fund (IMF) updates, as the global lender acknowledged inflation risks while expressing optimism for economic growth. Recent action by the Bank of Japan (BoJ) to defend the Yield Curve Control (YCC), which in turn puts a floor under global yields and weighs on the Gold price, may fall along the same line.

 

In addition, Monday's positive US data and expectations that the Federal Reserve (Fed) will do everything it takes to defend its hawkish monetary policy actions appear to impose downward pressure on the XAU/USD exchange rate.

 

Notably, the probable conclusion of Covid-led activity restrictions in the United States on May 11 and positive China PMIs previously drove the XAU/USD bounce from the $1,920 level.

 

US 10-year Treasury yields struggle to prolong a three-day rally near 3.54%, as the US Dollar Index (DXY) falls to 102.20 at the latest, reflecting the prevailing sentiment. In addition, both S&P 500 Futures and stocks in the Asia-Pacific area remain moderately available.

 

The US Federal Reserve's (Fed) monetary policy meeting will garner the lion's share of attention from Gold traders.


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